PBoC adds liquidity to fight against virus

Huang Yixuan
China's central bank has set up "green channels" for payment and settlement to support enterprises in efforts of resuming work and production as soon as possible.
Huang Yixuan

China's central bank has set up "green channels" for payment and settlement business to help enterprises to resume work and production as soon as possible.

To ensure the timely transfer of money, the People's Bank of China has opened a "green channel" for large fund transfers, while the quota in the micropayment system is also lifted, according to Fan Yifei, vice chairman of the PBoC.

During the period from January 24 to February 14, the central bank's high-value payment and micropayment systems has handled 393,500 transactions with value of over 10 million yuan (US$1.43 million) each, a total of 77 trillion yuan.

Among them, 872 transactions with a total value of 45 billion yuan were related to the prevention and control of the epidemic, Fan said.

The bank has also set up a channel for cross-border yuan trades (China International Payment System), and the operation period of the high-value payment system was extended to meet the demand of interbank trading and special re-lending.

In response to people's concerns about the safety of using cash, the bank has strengthened the cash supply and liquidity management, saying it allocated new banknotes with a total value of 4 billion yuan to Wuhan before the Chinese Lunar New Year.

Also, the PBoC has conducted disinfection of cash, asking the key institutions to temporarily put returned cash in storage. Commercial banks are also requested to disinfect cash before giving it to customers.

The China Banking and Insurance Regulatory Commission, meanwhile, provides financial services to bolster prevention and control of the epidemic and to support economic and social development. 

For industries heavily affected by the epidemic, including wholesale and retail, accommodation and catering, logistics and transportation, and tourism, as well as enterprises that have potential for growth but are now encountering difficulties, especially small and micro enterprises, the commission will ensure that their loans will not be cut off without due consideration. 

By the noon of February 14, over 537 billion yuan in credit support had been provided by financial institutions in the banking industry to fight the epidemic, according to Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission.

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