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China central bank makes $17 billion available to banks to boost economy

The People's Bank of China (PBOC) has made more than $17 billion available to Chinese financial institutions to help boost the economy, China News said, citing a blog post on the bank's website. 21 Aug 2015

The PBOC, China's central bank, provided the money to 14 institutions through its lending facility in order to maintain the liquidity of the banking system, China News said.

The central bank said that institutions should use the funds to support small companies, agriculture and "weak links" in the economy, china News said.

The PBOC announcement came a day after state-owned news agency Xinhua reported that the PBOC had injected almost $100bn into two government policy banks: $48bn to the China Development Bank and $45bn to the Export-Import Bank of China. Policy banks lend in line with Chinese government directives.

In April, PBOC used foreign exchange reserves to inject $62bn into the country's three policy banks to support the country's 'belt and road' economic plan.

China Development Bank received $32bn, and the Export-Import Bank of China $30bn. An unspecified amount was injected into a third bank, the Agricultural Development Bank of China, business news site Caixin said.