MNI BRIEF: PBOC To Expand And Monitor Re-Lending Tools

The People’s Bank of China will use its relending facilities to help weak sectors and stimulate the economy while strictly monitoring for any abuse of the targeted funds, said Zou Lan, the new head of PBOC’s monetary policy department, told reporters Thursday.

The coverage and quota of the relending scheme is expanding this year, Zou said, noting the targets are small and micro-sized companies, carbon-emission reduction, tech innovation, aging care as well as pandemic-hit transportation entities.

The PBOC provides cheap funds as incentives after lenders have loaned to the relative projects and companies, which helps avoid any misuse of the tools, and regulators will closely monitor the funds use and prevent any financial risk, he said.