Central bank to promote reform of standing lending facility

BEIJING - China's central bank will promote reform of the operation mode of its standing lending facility, as part of efforts to better meet reasonable liquidity needs.

The reform, which is referred to as empowering the whole process with electronic technology, will improve efficiency and better stabilize market expectations, said Liu Guoqiang, vice-governor of the People's Bank of China, at a national video conference Thursday.

It will also enhance the stability of liquidity in the banking system and maintain the smooth operation of money market interest rates, said Liu, adding that efforts should be made to guard against liquidity risks.

The Thursday meeting also stressed that the additional 300 billion yuan ($46.33 billion) of special central bank lending should be fully implemented, providing stronger support for small and micro enterprises.

The central bank will guide local corporate financial institutions to proactively meet the financing demand of small and micro enterprises, optimizing services for the real economy, Liu noted.