PBOC Sees ‘Reasonable’ Liquidity in China’s Financial System
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China said there’s a reasonable amount of liquidity in the financial system and urged banks to control risks from credit expansion, signaling no relief for a cash squeeze that risks exacerbating an economic slowdown.
“At present, the overall liquidity in China’s banking system is at a reasonable level, but due to many changing factors in the financial markets and also because of the mid-year point, the requirements for commercial banks in liquidity management have become higher,” the People’s Bank of China said in a statement dated June 17 and published on its website today in Beijing.