Reserves in June exceeds RMB1,572 bln in China’s non-bank financial institutions

Recently, the People’s Bank of China (PBoC) released the balance sheet data of the monetary authorities, showing that as of June 2020, deposits (reserves) of non-financial institutions had reached 1572.276 billion yuan, an increase of 65.157 billion yuan from the previous month.

Recently, the People’s Bank of China (PBoC) released the balance sheet data of the monetary authorities, showing that as of June 2020, deposits (reserves) of non-financial institutions had reached 1572.276 billion yuan, an increase of 65.157 billion yuan from the previous month.

On the whole, the reserve fund has shown an upward growth trend since Q2 of 2020.

In April, the People’s Bank of China issued a draft for comments on deposit management measures for non-bank payment institutions, mentioning that non-bank payment institutions shall set aside an industry guarantee fund to cover specific losses in customer reserves and for other purposes prescribed by the People’s Bank of China.

The measures for the management of the industry guarantee funds shall be separately formulated by the People’s Bank of China. Many payment institutions, including Alipay, have declared that they have received interest on the reserve funds.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/08/03/reserves-in-june-exceeds-rmb1572-bln-in-chinas-non-bank-financial-institutions/.

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