Mlf (medium-term $ TERM loan instrument) refers to medium-term loan instrument. Medium-term lending facility is a monetary policy tool for the central bank to provide medium-term base money. Commercial banks and policy banks that meet the requirements of macro-prudential management are required to provide high-quality bonds such as government bonds, central bank bills, policy financial bonds and high-grade credit bonds as qualified pledges. In short, MLF means that the central bank lends money to commercial banks, and commercial banks lend it to three rural enterprises and small and micro enterprises. Compared with other policy tools, MLF is a new type of unconventional monetary tool, which was initiated by the People's Bank of China.

limited time

MLF, M means medium-term $ TERM, that is, although the term is three months, the interest rate may be renegotiated and extended when it approaches maturity, and all borrowing banks can obtain loan facilities by pledging interest rate bonds and credit bonds.

Where the funds go

MLF requires all banks to provide small and micro loans to agriculture, rural areas and farmers. At present, the central bank releases water in order to promote loan recovery and tilt towards agriculture, rural areas and small and micro loans. Compared with the previous SLF, they have many similarities to some extent. They all ask commercial banks to submit some financial assets as collateral and then issue loans to this commercial bank.

The above information comes from Xicai.com.