China Financial Daily

Central bank raised the deposit and lending benchmark rate by 0.25 percentage points

People’s Bank of China decided, from October 20, 2010 to raise the benchmark deposit and lending rates of financial institutions. The one-year benchmark deposit rate increased by 0.25 percentage points, from the current 2.25% to 2.50%; one-year benchmark lending rate increased by 0.25 percentage points, from the current 5.31% to 5.56%; other deposit and lending interest rates adjusted accordingly

The central bank directionally increased the deposit reserve ratio of six banks by 50 basis points
The policy for short-term liquidity is too abundant, only temporary measures. Construction workers and peasants in the central bank this morning to inform the four state-owned commercial banks and investment and livelihood two joint-stock banks, several banks will raise the deposit reserve ratio, were increased by 50 basis points. Payment is expected within the week the relevant bank, the amount of about 280 to 300 billion yuan.

Central Bank proposed to research and demonstrate Municipal Bond management practices
[Abstract] explicitly in the system, under the premise of risk control, the use of market mechanisms to address needs of local government debt the central bank on Sept. 17 issued a “Financial Stability Report 2010″ proposal, local governments issue municipal bonds to resolve debt needs, research and feasibility studies Administration of municipal bonds.
In the system clear, the premise of risk control, the use of market mechanisms to address needs of local government liabilities

Central bank on Sept. 17 released the “2010 China Financial Stability Report” recommended the local government debt issuance needs of municipal bonds, municipal bond management practices research and demonstration.

The end of 2008 since the imposition of economic stimulus, the central investment projects to meet the matching funds and local self-investment needs, the number of local governments and debt financing platform for rapid expansion of the scale. As of the end of June 2010, local financing platform for loans of about 7.66 trillion yuan, of which 23% of the risk.