PBOC faces a $600 billion test - BBG

In a latest article published on Wednesday, “The Chinese central bank (PBOC) Governor shift toward new tools to steer the economy has swollen a targeted lending program to such a level that outstanding funds are now worth more than the annual output of the Malaysian and Danish economies combined.”

According to data compiled by Bloomberg, “The Medium-term Lending Facility has increased to 4.1 trillion Yuan ($594 billion), with 3.2 trillion Yuan coming due from April to December this year.”

The ballooning amount underscores the challenge Zhou faces as he tries to reduce leverage in the financial system while keeping the monetary base big enough to avoid a credit crunch.