MLF (Medium-term Lending Facility): Medium-term lending facility.

The medium-term lending facility is a monetary policy tool used by the central bank to provide medium-term base money. It is targeted at commercial banks and policy banks that meet the requirements of macro-prudential management and can be carried out through bidding.

The issuance method is pledge, and high-quality bonds such as treasury bonds, central bank bills, policy financial bonds, and high-grade credit bonds must be provided as qualified collateral.

Expanded information The current liquidity management of the banking system not only faces many disturbances from changes in capital flows, changes in fiscal expenditures, and IPOs in the capital market, but also undertakes many tasks such as improving the price-based regulatory framework and guiding market interest rates.

In order to maintain overall stable and moderate liquidity in the banking system and support reasonable growth of money and credit, the central bank needs to continuously enrich and improve the tool portfolio according to the duration, subject and purpose of liquidity needs to further improve the flexibility, pertinence and effectiveness of regulation.

In September 2014, the People's Bank of China created the Medium-term Lending Facility (MLF).

The medium-term lending facility interest rate plays the role of the medium-term policy interest rate. It affects the balance sheet and market expectations of financial institutions by adjusting the cost of medium-term financing to financial institutions, guiding them to provide low-cost funds to real economic sectors that are in line with national policy guidance.

Promote the reduction of social financing costs.