The differences between MLF and reverse repurchase are as follows:

1. Different distribution methods:

mlf is mainly pledged loan. It means that commercial banks use bonds such as national debt, financial debt and senior credit debt as collateral to borrow large sums of money from the People's Bank of China.

reverse repurchase is mainly issued by the People's Bank of China buying securities from Shenzhen Stock Exchange and Shanghai Stock Exchange and selling them to these exchanges after a certain period of time.

2. Different operation modes:

mlf is mainly carried out through external bidding of the exchange, and the bidding targets are mainly commercial banks, monetary funds and investment companies.

reverse repurchase mainly means that the People's Bank of China lends money to commercial banks, and commercial banks use their own high-quality bonds as collateral to the People's Bank of China.

3. Different time periods:

mlf is issued for a long time, generally ranging from three months to six months.

reverse repurchase is mainly a short-term behavior, which generally lasts no more than seven days.

4. Different purposes:

mlf is mainly to reduce the financing cost of small and medium-sized enterprises, play the role of policy interest rate, and guide the national policy funds to flow to the real economic sector.

reverse repurchase is mainly an investment behavior made by the people's bank of China to revitalize the securities market. during the stock downturn, it can bring confidence to the stock market and thus stabilize the entire financial order.

The content of this article comes from: China Law Publishing House's "All-knowing Series of Common Sense of Legal Life".