News: 2025.08.26
Logan said that banks are expected to use the Standing Repurchase Facility (SRF) next month due to the anticipated temporary liquidity pressures in the market during the tax settlement period and the end of the September quarter. Logan pointed out that as reserves in the banking system decline,…
According to Logan, banks are experiencing a gradual decline in systemic reserves, which could lead to some liquidity pressures. To address this, banks will use a standing repurchase facility (SRF) in the future.
Temporary liquidity pressures may occur during tax settlement days and quarter-end markets, which will have a certain impact on the banking system. Therefore, banks need to take measures to cope with this situation.
Logan noted that in response to the decline in bank system reserves, banks will begin using the Standing Repo Facility (SRF) next month. This will help stabilize the market and ease liquidity pressures.
As reserves in the banking system continue to decline, further liquidity pressures may emerge in the future. Therefore, banks need to closely monitor market conditions and adjust policies promptly to address potential challenges.