1 thought on “What does central bank bill swap CBS mean?”
Krystal
The full name of the CBS created by the People's Bank of China in 2019 is the full name of the CBS Central Bank Bills Swap (CBS). The People's Bank of China creates CBS The first -level dealers of the market business can use the permanent debt issued by the qualified bank to exchange from the People's Bank of China to the central bank bill. At the same time, bank permanent debt that does not be lower than AA -level rating is included in the scope of qualified guarantee for MLF, TMLF, SLF and re -loan. This expansion information: to deepen the market -oriented reform of interest rates and further promote the use of the loan market quotation interest rate (LPR). I. The existing floating interest rate loan referred to this announcement refers to the floating interest rate loan (excluding personal housing loan of provident fund) that has issued the reference loan benchmark interest rate pricing (excluding the provident fund) before January 1, 2020. Since January 1, 2020, financial institutions shall not sign a floating interest rate loan contract for reference loan benchmark interest rate pricing. . Since March 1, 2020, financial institutions shall negotiate with the price conversion clause of the pricing benchmark with the existing floating interest rate loan, and convert the interest rate pricing of the original contract to the LPR as the pricing benchmark. ( Adding points can be negative), and the point value is fixed within the remaining period of the contract; it can also be converted to fixed interest rates. The pricing benchmark can only be converted once, and it cannot be converted again after the conversion. The floating interest rate loan that is already in the last redirect cycle may not be converted. In principle, the benchmark conversion of the pricing of the existing floating interest rate loan shall be completed before August 31, 2020. . The pricing benchmark for the loan of the existing floating interest rate loan is converted to LPR. In addition to commercial personal housing loans, the additional value is determined by the borrowing and loan. The additional point value of commercial personal housing loans should be equal to the difference between the recent execution rate of the original contract and the corresponding period LPR released in December 2019. From the time of the conversion to the first redirection date (excluding). Obviously, CBS is a policy tool connected to perpetual debt. The first phase of the Bank of China in 2019 has no fixed period of capital bonds issued on January 25th. Other banks will be issued one after another. The total scale of debt renewal will reach 300 billion-500 billion yuan. Because permanent debt is a new variety, there may be some obstacles in pledge transactions. This problem can be solved after replacement of central bank bills. More importantly, the liquidity of perpetual debt is very poor, and it cannot be compared with the central ticket. The central ticket may be equivalent to currency. Therefore, by creating the CBS policy tool, the central bank has turned the perpetual debt of poor liquidity into a central ticket with good liquidity. Although the CBS has not increased the currency supply from the central bank's balance sheet, the amount of currency circulation has been added in actual operation, and the currency in the broad sense has increased.
The full name of the CBS created by the People's Bank of China in 2019 is the full name of the CBS Central Bank Bills Swap (CBS). The People's Bank of China creates CBS The first -level dealers of the market business can use the permanent debt issued by the qualified bank to exchange from the People's Bank of China to the central bank bill. At the same time, bank permanent debt that does not be lower than AA -level rating is included in the scope of qualified guarantee for MLF, TMLF, SLF and re -loan.
This expansion information:
to deepen the market -oriented reform of interest rates and further promote the use of the loan market quotation interest rate (LPR). I. The existing floating interest rate loan referred to this announcement refers to the floating interest rate loan (excluding personal housing loan of provident fund) that has issued the reference loan benchmark interest rate pricing (excluding the provident fund) before January 1, 2020. Since January 1, 2020, financial institutions shall not sign a floating interest rate loan contract for reference loan benchmark interest rate pricing.
. Since March 1, 2020, financial institutions shall negotiate with the price conversion clause of the pricing benchmark with the existing floating interest rate loan, and convert the interest rate pricing of the original contract to the LPR as the pricing benchmark. ( Adding points can be negative), and the point value is fixed within the remaining period of the contract; it can also be converted to fixed interest rates. The pricing benchmark can only be converted once, and it cannot be converted again after the conversion. The floating interest rate loan that is already in the last redirect cycle may not be converted. In principle, the benchmark conversion of the pricing of the existing floating interest rate loan shall be completed before August 31, 2020.
. The pricing benchmark for the loan of the existing floating interest rate loan is converted to LPR. In addition to commercial personal housing loans, the additional value is determined by the borrowing and loan. The additional point value of commercial personal housing loans should be equal to the difference between the recent execution rate of the original contract and the corresponding period LPR released in December 2019. From the time of the conversion to the first redirection date (excluding).
Obviously, CBS is a policy tool connected to perpetual debt. The first phase of the Bank of China in 2019 has no fixed period of capital bonds issued on January 25th. Other banks will be issued one after another. The total scale of debt renewal will reach 300 billion-500 billion yuan. Because permanent debt is a new variety, there may be some obstacles in pledge transactions. This problem can be solved after replacement of central bank bills. More importantly, the liquidity of perpetual debt is very poor, and it cannot be compared with the central ticket. The central ticket may be equivalent to currency. Therefore, by creating the CBS policy tool, the central bank has turned the perpetual debt of poor liquidity into a central ticket with good liquidity. Although the CBS has not increased the currency supply from the central bank's balance sheet, the amount of currency circulation has been added in actual operation, and the currency in the broad sense has increased.