Liquidity Facilities

Since the global financial crisis in 2008, regulatory reforms have been developed at the global level and implemented in Hong Kong to improve the resilience of banks and reduce systemic risk. However, central bank liquidity remains a crucial tool in the financial stability toolkit.

The RMB Liquidity Facility was introduced in June 2012 to address potential short-term liquidity tightness in the offshore RMB market. In the light of experience in operating the facility and developments in the offshore RMB market, the HKMA has made various refinements to the facility over the years.

The Base Rate is the interest rate forming the foundation upon which the Discount Rates for repurchase transactions through the Discount Window are computed.

The HKMA has introduced a standing US Dollar Liquidity Facility (the Facility) to make available US dollar liquidity assistance for licensed banks.