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Banking (General)

556 posts

PBoC solicits opinions on increasing oversight of bond valuation industry

At their core, these measures are about formalizing the structures behind bond pricing and price discovery. The current lightly-regulated, largely informal valuation system begets a lack of transparency that can lead to mispricing, which, in addition to injecting uncertainty and risk into the financial system, makes investors less confident in the bond products they are buying…
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PBoC cuts LPR rates

The LPR cuts will help ensure access to cheap credit for businesses and households. But credit supply isn’t the problem, credit demand is the problem – and that’ll remain low until consumer and business confidence returns…
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Second-tier banks cut deposit rates

It’s not entirely clear what financial authorities want to achieve here. Do they want to bolster banks’ profits, which have been squeezed by narrowing margins? Or are they laying the groundwork for lower lending rates by first reducing bank funding costs?
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PBoC cuts MLF rate

Interest rate cuts may help those parts of the economy that are overly indebted and struggling to meet their financial obligations – namely local governments and property developers, but it will do very little for the broader economic recovery…
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PBoC cuts SLF rate

When taken with large banks’ coordinated reduction in deposit rates this month, it’s clear that authorities are lowering bank funding costs as a prelude to reducing lending rates for end-borrowers…
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