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// definition

PSL

Pledged Supplementary Lending

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Macro & central banks

Short definition

A collateralised People’s Bank of China funding facility for development and policy banks. It provides resources for fields authorised by the central bank. Its rate and scope govern that funding channel; a budget subsidy on household interest uses a separate channel.

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Intuition

The central bank funds specialised public banks; final lending depends on eligible operations and fields.