Interbank Market News Scan: PBOC announces loan prime rate …

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Central Bank of the People’s Republic of China

Under the authorization of the People’s Bank of China (PBC), the National Interbank Funding Center (NIFC) announced the Loan Prime Rate (LPR) on February 21, 2022 as follows: the one-year LPR is 3.7% and the above-five-year LPR is 4.6%. The rates are effective until the next release. See article here. Source: The People’s Bank of China.

In order to keep the liquidity of the banking system adequate at a reasonable level, the People’s Bank of China conducted reverse repo operations in the amount of RMB10 billion through interest rate bidding on February 21, 2022. The reverse repo operations have a maturity of seven days at 2.10%. See article here. Source: The People’s Bank of China.

The following are the central parity rates of the Chinese currency renminbi, or the yuan, against 24 major currencies announced on Monday by the China Foreign Exchange Trade System. See article here. Source: China.org.cn

Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) announced (last Friday) that it will further extend the MAS SGD Facility for ESG Loans [1]  (the Facility). This extension will complement the six-month extension of Enterprise Singapore’s (ESG) Temporary Bridging Loan Programme  [2]  (TBLP) from 1 April 2022 to 30 September 2022. 

2   The Facility will continue to provide Singapore Dollar (SGD) funding to eligible financial institutions [3] (EFIs) for a two year tenor. A revised interest rate of 0.5% per annum [4] will apply for funding provided from the May 2022 application window onwards, to better reflect interest rates in Singapore, which have risen alongside the economic recovery. 

3   Since its introduction in April 2020, the Facility has disbursed a total of S$14.2 billion to EFIs in support of their lending to companies under the ESG Loan Schemes. Collectively, the Government’s risk sharing through the ESG Loan Schemes and MAS’ lower-cost funding through the Facility will continue to keep borrowing costs low for local enterprises to support their cashflow needs.

  1. [1] The Facility was established on 20 April 2020. The Facility was extended twice on 12 October 2020 and 5 July 2021, to complement ESG’s two extensions of the TBLP, the latest of which was from 1 October 2021 to 31 March 2022.
  1. [2] The TBLP was introduced in March 2020 for a year to help companies access working capital for their business needs during the COVID-19 crisis. The TBLP was extended twice on 12 October 2020 , and 5 July 2021 , the latest of which was from 1 October 2021 to 31 March 2022. On 18 February 2022, ESG has announced a further extension to 30 September 2022.
  1. [3] Banks and finance companies participating in the ESG Loan Schemes, which refer to the TBLP and the Enterprise Financing Scheme – SME Working Capital Loan, are eligible to tap on the Facility.
  1. [4] Since April 2020, the interest rate was 0.1% per annum for a two-year tenor to EFIs. Funding provided to EFIs in the February, March and April 2022 application windows will continue to be at the interest rate of 0.1% per annum for a two-year tenor.

Source: Monetary Authority of Singapore

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