Psl, that is, mortgage supplementary loan, refers to the loan issued by the central bank to commercial banks by mortgage. Qualified collateral can include bond assets with high credit rating and high-quality credit assets. It is also a base money delivery tool.

PSL is a supplementary mortgage. As a new tool of reserve policy, PSL has two meanings. First of all, the level of quantity is a new channel for the base currency. Secondly, the price level, through commercial banks to mortgage assets from the central bank, obtains the financing interest rate to guide the medium-term interest rate. The goal of central bank PSL is to guide the medium-term policy interest rate through the interest rate level of PSL, so as to realize the guidance and control of the medium-and long-term interest rate level in addition to the short-term interest rate control.

Mortgage loan (PSL, the abbreviation of pledge supplementary loan), as a new tool of reserve policy, PSL has two meanings. The first level is quantity, which is a new channel of the base currency. Secondly, the price level, through commercial banks to mortgage assets from the central bank, obtains the financing interest rate to guide the medium-term interest rate.

Knowledge expansion

PSL is a kind of re-loan, and it is a loan method that the central bank lends to commercial banks. It is different from refinancing because it is unsecured. Commercial banks can directly obtain loans at a certain interest rate from the central bank, and PSL is guaranteed. To a great extent, PSL directly provides commercial banks with low-cost funds in the fields of infrastructure and people's livelihood expenditure, and at the same time can reduce the financing cost of this part of society.

The goal of central bank PSL is to guide the medium-term policy interest rate through the interest rate level of PSL, so as to realize the guidance and control of the medium-and long-term interest rate level in addition to the short-term interest rate control. Since the end of 20 13, the central bank has established an interest rate corridor mechanism through SLF (standing loan facility) at the short-term interest rate level.

PSL is a tool, 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 loaned if something goes wrong. 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 basket of policy tools.

PSL background: The background of discussing the introduction of new monetary policy tools is that since the second half of 20 12, the growth rate of foreign exchange holdings has slowed down and the volatility has increased, which has had an impact on the supply pattern of base money. In the past ten years, the liquidity management of the central bank has gradually met the conditions of changing from passive hedging to active management of foreign exchange inflows, and the regulatory framework of monetary policy needs to change from quantitative to price.