Banking Research

With the liquidity crunch increasing in June and the interbank rate jumping to new highs, many state-owned banks are attempting to use the increased average wealth management product (WMP) yield to ease the tightened liquidity. Based on data from JRJ, the average monthly WMP yields in major state-owned banks increased…

We mentioned earlier this week that there had been a sharp uptick in the Shanghai Interbank rate in the past month. This peaked last night at about 13%. With the attention, rightly so, that this is getting, it’s worth taking a look at the issue and what’s involved. 

According to data released by the People’s Bank of China (PBOC), the interbank lending rate (weighted average interest rate) increased from 2.55% in April 2013 to 2.92% in May which will affect banking liquidity requirements. The interbank lending rate decreased from 2.77% to 2.47% in March, and it started to…