Mortgage supplementary loan, PSL, as a new reserve policy tool, has two meanings. First of all, the quantitative level is a new channel for the base currency. Secondly, at the secondary price level, the financing interest rate obtained from the central bank through the mortgage assets of commercial banks will guide the medium-term interest rate.

Extension of mortgage supplementary loan;

PSL is very similar to refinancing, which is an unsecured credit loan. However, the market often gives refinancing a certain meaning of financial stability, that is, an institution will only be put into refinancing if there is a problem. For various reasons, the central bank may upgrade the refinancing tool to PSL, which may largely replace the refinancing tool in the future, but refinancing is still in the central bank's policy tool basket.

In China, there are many credit loans, such as infrastructure construction and people's livelihood expenditure, which are often guaranteed by the government to a certain extent, but their profitability is poor. If commercial banks set their own prices based on market interest rates and set their prices completely commercially, then higher credit prices will not meet this credit demand. The central bank PSL's so-called guiding the medium-term policy interest rate level, to a large extent, directly provides some low-cost funds for commercial banks and guides them to invest in these fields. This can also play a role in reducing the financing cost of this part of society.

reference data

Tencent:/cmsn/20141kloc-0/9004848

Caixin. com:/2014-06-18/100692184.html.