Lending facilities (collateral monetary policy instruments) in the USA and in China
| Instrument | Established time | Object | Collateral contents | Aims | Maturity |
|---|---|---|---|---|---|
| The lending facilities in the US | |||||
| Term auction facility (TAF) | Dec. 2007 | Depositary financial institutions | All the collateral used in the discount window | Provide a wholesale monetary base to banks with auction mechanisms | 28–48 days |
| Term securities lending facility (TSLF) | Mar. 2008 | Non-bank primary dealers | Treasury bonds, local government bonds, investment-grade securities | Provide monetary base to non-bank primary dealers | 28 days |
| Primary dealers credit facility (PDCF) | Mar. 2008 | Primary dealers | Collateral accepted in repo market | The central bank functions as the overnight lender in the repo market | 1–14 days |
| Asset-backed commercial paper money market mutual fund liquidity facility (AMLF) | Sep. 2008 | Mutual Fund in Money Market | High-quality asset-backed commercial paper | Encourage the bank to purchase asset-backed commercial papers | Less than 270 days |
| Money market investor funding facility (MMIFF) | Oct. 2008 | Mutual Fund in Money Market | USD deposit certificate, commercial paper | Help the sale of money market instruments | Less than 90 days |
| Commercial paper funding facility (CPFF) | Oct. 2008 | Commercial paper issuers | 3-month ABCP | Provide liquidity to firms | 3 months |
| Term asset-backed securities loan facility (TALF) | Nov. 2008 | ABS investor | ABS | Provide liquidity to ABS investors | Over 1 year |
| The lending facilities in China | |||||
| Instrument | Established time | Object | Collateral contents | Aims | Maturity |
| Short-term liquidity operations (SLO) | Jan. 2013 | Primary banks | Treasury bonds, political financial bonds | Response to liquidity shocks caused by unexpected and emergent factors | 7 days |
| Standing lending facility (SLF) | Jan. 2013 | Policy banks and national commercial banks (2013) | High-quality bonds and loans | Satisfy large amount need of monetary base of banks | Over-night, 7 days, 1–3 months |
| Commercial banks that meet the requirements of macro-prudential management (2015) | |||||
| Medium-term lending facility (MLF) | Sep. 2014 | Banks that meet the requirements of macro-prudential management | Treasury bonds, central bank bills, policy financial bonds, high-quality credit bonds (2014) | Provide a wholesale monetary base to banks that meet requirements of macro-prudential management | 3, 6, 12 months |
| Treasury bonds, central bank bills, policy financial bonds, local government bonds, interbank certificates of deposit, AAA corporate credit bonds (2015) | |||||
| Contents of 2015, small and micro-enterprise, green and agriculture, rural areas and farmers financial bonds (better than AA level), AA+, AA level corporate credit bonds, high-quality bonds small and micro business loans and green loans. (2018) | |||||
| Instrument | Established time | Object | Collateral contents | Aims | Maturity |
|---|---|---|---|---|---|
| Term auction facility (TAF) | Dec. 2007 | Depositary financial institutions | All the collateral used in the discount window | Provide a wholesale monetary base to banks with auction mechanisms | 28–48 days |
| Term securities lending facility (TSLF) | Mar. 2008 | Non-bank primary dealers | Treasury bonds, local government bonds, investment-grade securities | Provide monetary base to non-bank primary dealers | 28 days |
| Primary dealers credit facility (PDCF) | Mar. 2008 | Primary dealers | Collateral accepted in repo market | The central bank functions as the overnight lender in the repo market | 1–14 days |
| Asset-backed commercial paper money market mutual fund liquidity facility (AMLF) | Sep. 2008 | Mutual Fund in Money Market | High-quality asset-backed commercial paper | Encourage the bank to purchase asset-backed commercial papers | Less than 270 days |
| Money market investor funding facility (MMIFF) | Oct. 2008 | Mutual Fund in Money Market | USD deposit certificate, commercial paper | Help the sale of money market instruments | Less than 90 days |
| Commercial paper funding facility (CPFF) | Oct. 2008 | Commercial paper issuers | 3-month ABCP | Provide liquidity to firms | 3 months |
| Term asset-backed securities loan facility (TALF) | Nov. 2008 | ABS investor | ABS | Provide liquidity to ABS investors | Over 1 year |
| Instrument | Established time | Object | Collateral contents | Aims | Maturity |
| Short-term liquidity operations (SLO) | Jan. 2013 | Primary banks | Treasury bonds, political financial bonds | Response to liquidity shocks caused by unexpected and emergent factors | 7 days |
| Standing lending facility (SLF) | Jan. 2013 | Policy banks and national commercial banks (2013) | High-quality bonds and loans | Satisfy large amount need of monetary base of banks | Over-night, 7 days, 1–3 months |
| Commercial banks that meet the requirements of macro-prudential management (2015) | |||||
| Medium-term lending facility (MLF) | Sep. 2014 | Banks that meet the requirements of macro-prudential management | Treasury bonds, central bank bills, policy financial bonds, high-quality credit bonds (2014) | Provide a wholesale monetary base to banks that meet requirements of macro-prudential management | 3, 6, 12 months |
| Treasury bonds, central bank bills, policy financial bonds, local government bonds, interbank certificates of deposit, AAA corporate credit bonds (2015) | |||||
| Contents of 2015, small and micro-enterprise, green and agriculture, rural areas and farmers financial bonds (better than AA level), AA+, AA level corporate credit bonds, high-quality bonds small and micro business loans and green loans. (2018) | |||||
Source(s): The table is created by authors