Near the end of the quarter the financial side tension is normal, but it is worth noting that, the industry said that the surface tension of funds showing a significant structural features, and that macro-prudential assessment system (MPA) concerning the implementation of the new central bank. CIC Securities analysts said the central bank had announced that since the beginning of 2016, will upgrade differentiated reserve dynamic adjustment mechanism for the macro-prudential assessment system (MPA), the first quarter of 2016 is the first assessment of the MPA of the New Deal.
Compared to the previous dynamic differentiated reserve requirement adjustment mechanism, MPA for major changes in bank credit evaluation is to narrow the definition of desirable loans from credit-adjusted generalized credit, which in addition to traditional loans, including securities and investments, and even interbank repurchase agreements. In the case of credit unions in January thaw surge, consensual generalized lending some financial institutions may be overrun. In generalized loans, the most convenient for sizing is the interbank and securities investment, which may lead to the commercial banks to reduce the size of the money market financing, making money market tensions triggered fuse.
Guoxin Securities macro and chief analyst of fixed income Dong De Zhi author said that the completion of MPA appraisal process (end of season), the Bank for non-bank institutions (brokerage, insurance, fund class) of Chinese financial the size will be reduced, but the bank and the bank capital transactions between the credit scale, but not in the broad sense, and therefore reflects the non-bank financial institutions tense, and between the bank’s internal financial situation is acceptable situation.
From the market situation, the tension is also imminent. “Morning bank basically does not pay, accusing him of afternoon only a little money. Nonbank financial institutions are very hungry, do not even ask the price to the point where money is necessary.” A broker who told reporters. The stark contrast, one accusing him of financial market department official said, “Today, all banks are busy to calculate the size of their open positions.” According to statistics, the total amount pledged repo shrunk down to size month low of 1.66 trillion yuan, accounting for only overnight funds traded more than Liu Cheng.