China's central bank to conduct MLF operations with adjusted rules on Tuesday

BEIJING - China's central bank on Monday said that it will issue 450 billion yuan ($62.5 billion) of one-year medium-term lending facility (MLF) loans on Tuesday, with adjusted rules.

Starting this month, the MLF will undertake operations that utilize fixed-quantity, interest-rate bidding and a multiple-price bidding method, the People's Bank of China said in a statement.

The MLF was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

On Feb 25, the central bank conducted a 300-billion-yuan MLF, featuring a one-year maturity period and an interest rate of 2 percent. Following the operation, the outstanding MLF balance stood at 4.09 trillion yuan.