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CHINA PRESS: China's fiscal deficit rate should be increased to 4%, The Paper
said Wednesday, citing Yao Yudong, former director of the Financial Research
Institution of The People's Bank of China on Tuesday.
- Chinese small and medium-size banks have insufficient collateral to apply to
the Medium-term Lending Facility (MLF), so liquidity released by the central
bank can't reach the real economy. A 4% deficit rate is reasonable and can
mitigate the risk of a lack collateral, the newspaper said citing Yu.
(Link to the story: https://bit.ly/2DCX1Kf)