Article
【PBOC Establishes the Bond Market Non-Bank Large-Scale Redemption Swap Facility】
The Open Market Operations Office of the People's Bank of China issued an announcement deciding to establish the Bond Market Non-Bank Large-Scale Redemption Swap Facility, abbreviated as BNSF. The announcement stated that the move aims to implement the establishment of a sound and science-based monetary policy framework and a comprehensive macroprudential management framework, and to maintain bond market stability. The relevant document is People's Bank of China Open Market Operations Announcement〔2026〕No. 12. According to the announcement, under specific circumstances in which asset management institutions face collective liquidity risks and systemic pressure emerges in the bond market, systemically important bank wealth management subsidiaries, public fund managers, or their corresponding parent banks, securities parent companies, and others will be supported in borrowing central bank bills from the People's Bank of China for market repo financing, in order to purchase eligible bonds or product units redeemed from public funds managed by the institution itself or its asset management subsidiaries, and pledge them to the People's Bank of China. Participating institutions shall continuously meet prudent financial market management requirements and maintain market discipline.