Reduction in deposits and other factors to tighten the capital face

Each trainee reporter He Kirin from the Shanghai money market short-term capital prices experienced a rapid surge, high entrenched in the week.　　To ease the tension in the capital, the central bank this week in the open market net put 145 billion yuan.　　In addition to the open market operation, this Tuesday Treasury Cash Management conducted a 40 billion yuan commercial bank time deposit tender, so that this week, the total market capital of 185 billion yuan.　　Traders in Shanghai said the market is now very tight, and if the central bank is not in the open market, it will only aggravate the market tension. Since late May, bank funding has suddenly been strained, and short-term capital rates have been rising, forcing this week's open market for the March issue yield to rise by 4.04 points for the second consecutive week.　　In fact, the tight state of money market capital face appears, is affected by many factors.　　A bank trader in Beijing says many banks are under pressure to borrow more than regulators, and that the money market is being merged into funds to lower the loan-to-deposit ratio below the regulatory red line.　　If it is understandable that joint-stock banks are being forced into the funds by the loan-to-deposit ratio, then it is difficult to understand that the large state-owned banks, which have always been disciplined, with a broad mass base and as a reservoir of markets, are more heavily involved in the interbank market.　　According to the previous report of this newspaper, earlier because of the original capital of the state-owned large banks into the market turned into funds, so that the market panic, and exacerbated the jump in capital prices. A big line of traders said the shortfall was indeed caused by a sharp drop in deposits. "The rate of decline in deposits is indeed somewhat unusual. Hanbing, a Northern trust researcher, told the Daily economic news that bank deposits were falling, especially in the big banks, partly because of the fact that last year's corporate demand deposits, which were temporarily in the bank, have been useful this year. "Last year's loan expansion was too fast, many of the lending companies did not have good projects, temporarily put money in the bank, but this year when a project out of the source of these deposits, the bank deposits are less." "In addition, the strong demand from banks around the world also shows that banks have unusually strong demands on deposits." The traders said, "Now the bank to the sales of the task indicators are very serious." "At the same time, the increase in the third deposit reserve ratio in early May and the long period of liquidity withdrawal in the early stage of the open market are the reasons for the tightening of funds." Another market point of view, the central bank in April, the current month of foreign exchange accounted for excessive hedging, further make funds face tightening.