In the vernacular, it is called "spicy powder" by Jianghu people, and it is a fan of Yang Ma's basket of money tools. In addition, there are SLF (hot and sour powder), PSL (afraid of hot and sour), TLF (extra spicy powder) and so on.
The bank has 100 yuan of national debt, so it can borrow 100 yuan from the central bank and agree to repay 100 yuan with interest after one year. This borrowed 100 is MLF. In addition to national debt, other types of bonds can also enter MLF operation. The only difference is the pledge rate. The pledge rate of national debt is 100%, that is, 100 national debt can be mortgaged 100 yuan, and the mortgage pledge rate of other types of bonds is less than 1.
From September 2065438 to September 2004, the People's Bank of China established MLF, and its operation period is generally three to six months. The object of operation is commercial banks, policy banks and other financial institutions, and it is a monetary policy tool for the central bank to provide medium-term base money and play a role in guiding medium-term interest rates. Medium-term lending convenience interest rate plays the role of medium-term policy interest rate. By adjusting the cost of medium-term financing of financial institutions, it affects the balance sheet and market expectation of financial institutions, guides financial institutions to provide low-cost funds to the real economic sector that conforms to the national policy orientation, and promotes the reduction of social financing costs. Vernacular interpretation is to release capital liquidity through MLF, making it easier for enterprises to borrow from banks. The loan term is generally a medium-term loan of more than one year and less than seven years, which means that reducing MLF is good news for enterprises.
Extended data
SLF (standard equipment)
At the beginning of 20 13, the People's Bank of China established a standing loan facility, which was piloted in some provinces and cities, and it was the earliest of all innovative liquidity tools. 2065438+February 2005 1 1, the central bank promoted the standing loan facilities of branches throughout the country. Compared with other tools, the biggest feature is that the local central branch of the People's Bank of China provides short-term liquidity support to local small and medium-sized financial institutions; It is not directly operated by the head office of the central bank. Therefore, the actual operation is very convenient, and many processes of SLF are very similar to refinancing. In the process of local central sub-branches of the central bank, SLF and refinancing are often collectively referred to as "refinancing", and the management of collateral is also consistent with refinancing (some refinancing still adopts guarantee and credit refinancing).