The People's Bank of China, the central bank, will carry out 700-billion-yuan (about 104.8 billion U.S. dollars) one-year medium-term lending facility (MLF) operations on Monday to maintain ample liquidity in the country's banking system.

The central bank said the MLF operations will be conducted through variable-rate tenders with a fixed quantity, using a multiple-price auction.

The MLF is a monetary policy tool used by the central bank to provide medium-term base money, which can be conducted through a tender process.

Introduced in 2014, it helps commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.