PBoC issues set of rules on interbank lending

FXStreet (Łódź) - The People's Bank of China released a set of interbank financing regulations on Friday, aimed at reducing liquidity risks and reinforcing the real economy.

According to the publication, banks will not be able to accept third party guarantee for interbank business. Other rules include a restriction of the interbank borrowing period to up to 3 years and limiting the volume of borrowing to one third of debts.

Furthermore, the PBoC urged banks to introduce provisions for interbank investment and make sure that businesses receive accurate accounting treatment.