Short-term temporary financing activities between banks or non-bank financial institutions. Also known as the interbank lending market.
The evolution of interbank lending market stems from the implementation of deposit reserve policy. Deposit reserve is a capital reserve paid to the central bank to prevent the operational risks of commercial banks, prevent the run on deposits and liquidate the shortage of funds, which is a remarkable feature of modern banking system. The statutory reserve ratio of commercial banks must maintain the minimum ratio stipulated by the central bank for their deposits and liabilities. Usually, the central bank does not pay interest on reserve deposits. As the debt structure and balance of commercial banks are constantly changing, the amount of their statutory reserve is also constantly changing, so their deposit reserve in the central bank is often higher or lower than the statutory reserve ratio. If it is low, it must be made up in time, otherwise it will be punished by the central bank; If it is high, the excess should be used in time, otherwise the bank's income will be gone. This creates conditions for banks to lend money to each other. Many banks also link the interbank lending market with their creditor's rights management plans, and expand their asset business with the help of the sources of funds in the interbank lending market. On the one hand, they increase the demand for funds and stimulate supply; On the other hand, it has also increased the number of participants in the interbank lending market and greatly promoted the development of the interbank lending market.
Inter-bank lending appeared at the end of China 1984, which soon became popular throughout the country. A cross-regional, cross-system, multi-level and large-scale interbank lending market system based on Shanghai, Beijing, Wuhan, Guangzhou, Shenyang, Xi and other big cities has initially taken shape, which has played an important role in financing and making full use of credit funds.
Characteristics The interbank lending market usually only allows financial institutions to participate, and non-financial institutions cannot participate in the lending business. In countries with open financial markets, foreign central banks and commercial banks can also participate in the interbank lending market. Borrowed funds are generally short-term, usually overnight, and the longest is no more than 1 year. Borrowed funds generally do not need to pay deposit reserve.
In addition to financial institutions, there are two kinds of intermediaries participating in the interbank lending market, namely: ① intermediaries specializing in lending business, such as short-term financing companies in Japan; (2) Intermediaries that also act as lending intermediaries are usually some large commercial banks.
Type 1 tangible lending market, which carries out lending business through specialized lending brokerage companies, is not common. (2) In the intangible lending market, it is quick and convenient for both parties to reach a transaction directly or for brokers to transmit information or to act as agents for fund lending business, and to contact each other by telephone, telex and other telecommunication means to close the transaction.
Business ① From the term point of view, the short term can be half a day, and the long term can reach 65,438+0 years, but most of the loan term is within 65,438+0 weeks, of which the more common term is 65,438+0 days, which is borrowed on the first day of liquidation and repaid before liquidation the next day. ② In terms of loan guarantee, there are mortgage loans and secured loans. Due to the short term of interbank lending, the borrowers and borrowers are mainly banks with good reputation and mutual familiarity. Therefore, most interbank lending is credit lending without any guarantee; Secured loan usually refers to the borrowing bank borrowing money by selling short-term securities. This kind of selling is generally signed with a repurchase agreement, which is essentially a guarantee for borrowed funds. Secured loans usually occur between relatively long-term loans and financial institutions with average credit status.
The development of interbank lending market provides an effective and convenient short-term capital swap market for financial institutions, which is beneficial to financial institutions that pay attention to asset management and liability management.
On the development of China's foreign currency interbank lending market
I. Positive Significance of Developing Foreign Currency Interbank Lending Market In a country's money market system, in addition to the borrowing market of local currency funds, the borrowing market of foreign currency funds also needs to correspond to it. Experience shows that any country or region will have the demand of foreign currency lending market after its economic development and opening to the outside world reach a certain level. For example, in Hong Kong, 1972, the Hong Kong dollar was pegged to the US dollar from the British pound, and the importance of bank dollar funds increased, thus creating a dollar lending market. In the late 1970s, with the vigorous development of Hong Kong's economy, a large number of foreign banks flooded into Hong Kong to set up branches. Although these foreign banks are strong, they lack the deposit base, and mainly rely on the foreign currency lending market, and have made great progress. Another example is Taiwan Province Province, with the relaxation of foreign exchange control, the free exchange of Taiwan dollars and the expansion of foreign exchange funds on the island, designated foreign exchange banks and factories have appeared one after another. ...
China Bank will promote the development of interbank lending market with a more open policy.
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[Shihua Caixun] The newly promulgated Measures for the Administration of Interbank Lending by the People's Bank of China is the result of extensively soliciting the opinions of all participants in the market, which embodies the policy orientation of adhering to the direction of market-oriented reform, relaxing market control and respecting market choice. The People's Bank of China will promote the development of interbank lending market with a more open policy.
The People's Bank of China reported on July 9 that the People's Bank of China issued the Measures for the Administration of Interbank Lending on July 9, which came into effect on August 6, 2007. Since the establishment of 1996 national interbank lending market, the People's Bank of China has comprehensively standardized the management rules of interbank lending market on the basis of summing up the market development and management experience for ten years, which is also the most important adjustment of interbank lending management policy in the past decade.
Since its establishment, the national interbank lending market has been developing rapidly on a standardized track. By the end of 2006, the number of market participants had reached 703, which was four times that of/kloc-0 at the beginning of the market. The annual transaction volume reaches 2 15 billion yuan, which is more than/kloc-0.0 times of the initial market. The signal function of Interbank Offered Rate has been continuously improved, and it has become one of the most important interest rate indicators in China money market. The fact that the interbank lending market has maintained a sustained, rapid and healthy development in the past ten years proves that the existing interbank lending management measures can effectively prevent systemic risks and should continue to be adhered to and improved.
In recent years, with the deepening of financial reform, the internal control system of financial institutions has made remarkable progress, the financing channels of financial institutions have been diversified, the marketization of pricing mechanism has improved, and other sub-markets in financial markets have also made great progress. Under the new situation, financial institutions have put forward new demands for the further development of the interbank lending market, especially after the implementation of the SHIBOR quotation system reform, financial institutions hope that the interbank lending market will be more in-depth and extensive. On the other hand, the People's Bank of China has explored a series of effective market management measures such as term management, quota management, access management, filing management, transparency management, etc. in the ten-year interbank lending market management practice, which can not only prevent system risks, but also flexibly adapt to the diversified needs of different types of market entities. The Measures for the Administration of Interbank Lending is an important regulation to further promote the development of interbank lending market, cooperate with the reform of SHIBOR quotation system and meet the needs of market participants on the basis of summarizing the management experience of interbank lending market.
Article 54 of Chapter VIII of the Measures for the Administration of Interbank Lending comprehensively stipulates the access and exit, trading and liquidation, risk control, information disclosure, supervision and management of the interbank lending market, and clearly stipulates the legal liability for violating the provisions on the administration of interbank lending. The main provisions of the Measures for the Administration of Interbank Lending include six aspects: first, it stipulates the conditions and procedures for access to the interbank lending market, and the financial institutions that can apply for access to the interbank lending market include 16, covering all banking financial institutions and most non-bank financial institutions; Second, it is stipulated that interbank lending transactions must be conducted through a unified nationwide interbank lending network, and the basic norms of interbank lending transactions and liquidation are clarified; Third, the specific standards of term management and limit management of interbank lending of various financial institutions are stipulated, and the principle requirements of internal risk management of financial institutions are put forward; Fourth, the basic principles of transparency management in interbank lending market are stipulated, and strengthening transparency is regarded as an important measure to strengthen market constraints and prevent systemic risks; Fifth, the specific contents and procedures of supervision and inspection of interbank lending market are stipulated, the authority of branches at all levels of the People's Bank of China in supervision and inspection of interbank lending market is clarified, and the legal responsibilities of supervisors are determined according to the principle of equal rights and responsibilities; The sixth is to clarify the legal responsibilities and handling basis that various market entities and market intermediaries should bear when they violate the regulations on interbank lending management.
In the process of drafting the Measures for the Administration of Interbank Lending, the People's Bank of China fully absorbed the opinions and suggestions of regulatory authorities, financial institutions and market intermediaries. The newly promulgated "Administrative Measures for Interbank Lending" is the result of extensive understanding of all participants in the market, which embodies the policy orientation of adhering to the direction of market-oriented reform, relaxing market control and respecting market choice. The People's Bank of China will promote the development of interbank lending market with a more open policy.
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