As a key component of the financial market system, the inter-bank market is playing an increasingly important role in macroeconomic management, fund allocation, pricing and risk management. The People’s Bank of China is committed to developing the inter-bank market. Over the past few years, efforts have been made to enhance financial innovation, improve the market-based mechanism, and expand institutional investors on the market.
The inter-bank market has grown in both depth and width. In 2008, the turnover in the inter-bank borrowing market and the inter-bank bond market totaled 114 trillion yuan, an increase of 560 percent from that in 2003.