The People's Bank of China (PBoC) has refused to take responsibility for easing the country's tight liquidity conditions, and put the onus on commercial banks to maintain "adequate" levels of reserves.

During the past two weeks the Chinese banking sector has suffered from a lack of liquidity as seasonal demands – including balance sheet inspections and income tax payments – drained banks' reserves and helped to push interbank money market interest rates well above their usual levels.

The PBoC