The recent liquidity crunch in the interbank borrowing market is a manifestation of the regulators' policy direction. After being criticized by the central bank, CMSB (China Minsheng Banking Corp. Ltd.) finally agreed to clear up its entire non-standard assets worthy of RMB12billion by July 20 as part of its obligation to the regulation standards. Anbound research team points out that the banking sector is forced into adjusting its previous measures in line with the Chinese central bank's recent monetary easing measures. The complementarity of these two measures is expected to ease the liquidity shortages in the market.