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Banks' liquidity set to remain ample: PBOC

Updated: 2013-10-17 07:12
By Gao Changxin in Hong Kong ( China Daily)

The central bank reiterated on Wednesday that banking liquidity is ample and will remain so in the near future, indicating it will not easily pour money into the banking system despite a cash squeeze earlier this year that caused market turmoil.

The People's Bank of China said in a statement on its website that banking liquidity "rose sharply" recently on the back of the country's wide trade surplus and the United States Federal Reserve's decision to delay tapering of its quantitative easing program, which caused an inflow of funds into China.

For instance, M2 - the broader measure of money supply - rose 14.2 percent in September, 1.2 percentage points higher than the full-year target of 13 percent.

Banks' liquidity set to remain ample: PBOC