From the WSJ moneybeat blog:
China’s cardinal depository fiscal establishment extended back upwards on Fri to a grouping of unnamed but large banks... the People’s Bank of Cathay extended a longer-term but temporary liquidity facility... Details on the facility were typically vague. In recent weeks it has also injected tape amounts of cash.
The deed gives banks roughly breathing room for now, simply every bit interbank liquidity stresses escalate. The novel facility, analysts from ANZ say, doesn’t bespeak banks to post service collateral similar other facilities typically do. And it makes it easier for them to attain a key regulatory barometer that monitors banks’ liquidity adventure inwards cases of stress inwards the brusk term. H5N1 helping manus tin lighten roughly other burden–but non for long."Interbank liquidity stresses" in addition to cardinal depository fiscal establishment long term "loans" without collateral are non a proficient sign. An escalating nation of war on upper-case missive of the alphabet flying is non a proficient sign either.
