China's central bank sets up new financial stability committee

BEIJING (Reuters) -China's central bank has set up a macroprudential and financial stability committee to help defuse financial risks, it said on Friday, pledging to maintain accommodative policy.

In its mid-year work summary, the People's Bank of China (PBOC) said it will focus on preventing and resolving key financial risks, supporting local government financing platforms in debt resolution, and managing risks in key regions and institutions in an orderly way.

It will further strengthen risk monitoring, assessment, and macroprudential management, it said.

The PBOC will continue to implement an "appropriately loose" monetary policy in the second half of this year, use various monetary policy tools to keep liquidity ample and guide financial institutions to sustain reasonable credit growth.

The central bank will ensure the financing needs of Chinese trade-related firms, and maintain the flexibility of the yuan exchange rate, it said.

The PBOC also pledged to push yuan internationalisation "in a steady and prudent" manner, expand the yuan's use in trade, strengthen its role as a financing currency, and optimise policies for currency pools and overseas listings of domestic firms.

(Reporting by Beijing Newsroom and Kevin Yao; Editing by Toby Chopra)

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