The National Interbank Funding Center (全国银行间同业拆借中心) (NIFC) is a branch of China’s central bank that is responsible for providing a broad range of functions in relation to trading on the Chinese interbank market.
NIFC is a directly subordinate public institution of the People’s Bank of China (PBOC), and its main functions include:
- Providing an interbank forex transaction, renminbi interbank lending and bond transaction system and the organisation of market transactions;
- Handling the funds settlement and delivery for forex transactions, and providing renminbi interbank loan and bond transaction settlement notification services;
- Providing online bill quoting systems;
- Providing forex market, bond market and money market information services;
- Collating and reporting the loan prime rate (LPR) on the morning of the 20th of each month;
- Undertaking other operations as approved by PBOC.
NIFC is headquartered in Shanghai, with a reserve center established in Beijing.
At present NIFC has established branch centers in 18 key cities, including Guangzhou, Shenzhen, Tianjin, Jinan, Dalian, Nanjing, Xiamen, Qingdao, Wuhan, Chongqing, Chengdu, Zhuhai, Shantou, Fuzhou, Ningbo, Xi’an, Shenyang and Haikou.
NIFC was first founded in April 1994 as the Forex Trading System (外汇交易系统), amidst forex reforms overseen by PBOC and the State Administration of Foreign Exchange (SAFE).
In January 1996 China launched the Renminbi Credit Lending System (人民币信用拆借系统), which commenced interbank bond transaction operations in June 1997, while in September 1999 the transaction information system was launched.