To meet the temporary liquidity demand of commercial banks due to large cash injections in the run-up to the Spring Festival, PBC decided to set up “Contingent Reserve Allowance” to facilitate the smooth operation of money market and the efficient financial services provided by financial institutions around the Spring Festival. National commercial banks with a relatively large share of cash injections can withdraw up to 2% of their legal deposit reserves temporarily for up to 30 days to meet their contingent liquidity gap during the Spring Festival.
Date of last update
Nov. 29 2018
