China's top five banks are receiving aid from the country's Central Bank amounting to US$81 billion or 500 billion yuan. The government support is intended to curb the slow growth rate for the world's second economic power. 

The Wall Street Journal said information from an unidentified Chinese bank executive reveals that People's Bank of China (PBOC) plans to inject the funds to the top five banks using a standard lending facility based on 3-month loans. 

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"We will make an announcement if we have any news." PBOC spokesman told Reuters when asked about the matter. 

Authorities have started taking up considerable steps to save the faltering economy but failed to create a more sweeping impact. Asian markets saw a rise but analysts believe Beijing's measures are still targeted more than all encompassing. 

According to the Wall Street Journal, Chinese executives and bankers remain skeptic about the move. The flagging demand on business loans continues to challenge the economy which may require more than the monetary support from the Central Bank. Experts believe China has to strengthen its measures if it wants to counter the gloomy economic outlook. 

The central's bank move may have stemmed from its growing concerns on expected liquidity tightening even before the conclusion of the quarter. 

"We think the latest SLF is mainly aimed at providing liquidity to pre-empt potential liquidity shortages in the banking system in the coming weeks," Jian Chang. Hong Kong Barclays Capital's China economist discussed in a research note. 

However, Reuters noted that liquidity injection does little to pre-empt overall conditions. China's economy started on a shaky note following a weak performance, thus the need for better measures. 

Credit Agricole shared in a research note: "This (SLF) is consistent with our view that targeted easing measures will be used in view of the deceleration in economic activities as reflected by recent data."

There have been arguments within the Central Bank about what drastic measures to take while also avoiding lending floods contributing to China's debt problems. 

"There remains big pressure [on the PBOC] to loosen credit, so it's entirely likely that it will do more targeted easing in the coming months," The Wall Street Journal quoted Zhang Bin, Chinese Academy of Social Sciences seinor research person. 

 "But the likelihood of a broader loosening of monetary policy is small." Bin added in the note.

TagsPBOC, China debt