The People’s Bank of China announced that on July 24, 2026, it will carry out a one-year Medium-Term Lending Facility (MLF) operation worth 500 billion yuan (approximately USD 73.6 billion). The funds will be provided for a 12-month period to support sufficient liquidity in the banking sector and promote the stable functioning of the country’s financial system.
According to the central bank, the operation will be conducted through a fixed-quantity, multiple-price auction with a variable interest rate. This mechanism enables liquidity to be allocated efficiently among financial institutions in line with market demand while supporting the effective transmission of monetary policy.
In July, previously issued MLF loans totaling 400 billion yuan are set to mature. As a result, the new operation will generate a net liquidity injection of 100 billion yuan into the banking system. The People’s Bank of China noted that such measures form part of its broader monetary policy aimed at safeguarding financial market stability, supporting credit growth, and maintaining balanced monetary conditions across the economy.
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