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The central bank cuts the RRR, and the released liquidity drives the growth of the real economy
According to analysis, the purpose of this RRR cut is to better serve the real economy and effectively alleviate the financing difficulties of enterprises, especially private enterprises and small and micro enterprises. This move has attracted the attention of many manufacturing enterprises. The central bank interprets it as “conducive to cost reduction in the real economy” 1. How much funds will be released by the RRR cut to replace the medium-term lending facility? A: The RRR cut will release about 1.5 trillion yuan in funds, plus the funds released by the upcoming targeted medium-term lending convenience operation and the dynamic assessment of inclusive finance targeted RRR cuts, and then consider the convenience of the medium-term lending due in the first quarter of this year. After renewing the factors, the net release of long-term funds is about 800 billion yuan. 2. Does the RRR cut mean a change in the orientation of prudent monetary policy? Answer: The RRR cut is still a directional control, not flooded, and the orientation of the prudent monetary policy has not changed. The RRR cut policy was implemented in two phases, which is in line with the pace of cash injection before the Spring Festival. It is conducive to maintaining a reasonable and sufficient total liquidity in the banking system. At the same time, it also takes into account internal and external balances and helps maintain the basic level of the RMB exchange rate at a reasonable and balanced level. stable. 3. How does the RRR cut support the real economy? Answer: The RRR cut and related operations have released about 800 billion yuan of long-term incremental funds, which can effectively increase the sources of real economy loans for small and micro enterprises, private enterprises, and so on. The replacement of medium-term borrowing facilities can also directly reduce the interest payment costs of relevant banks by about 20 billion yuan each year, which is beneficial to the real economy to reduce costs through bank transmission. These are all conducive to supporting the development of the real economy. How can the released funds flow accurately to the real economy? Zong Liang, chief researcher at the Bank of China, believes that “it usually takes a long time to prepare before the RRR cuts in previous years, but the direct announcement of the RRR cuts this time at the beginning of the year has released a signal to firmly solve the outstanding problems of China’s economy, inject confidence into enterprises, and help China in 2019 The stable operation of the economy has laid the foundation.' 'The downward pressure on the domestic economy is relatively high, and there are many uncertainties in foreign countries due to trade frictions. The central bank chose to adjust the deposit reserve ratio at this point in time. At present, it is to ease the downward pressure on the economy and boost the market. Confidence,” said Zhao Xijun, deputy dean of the School of Finance and Banking, Renmin University of China. 'Currently, liquidity is tight and the economy is facing downward pressure. Now the RRR cut is conducive to meeting market flows and seasonal demand.' Xu Hongcai, deputy chief economist of China International Economic Exchange Center, said that it is also conducive to expanding investment, consumption and employment, and alleviating small businesses. The financing pressure of micro and private enterprises has strengthened the confidence of market participants and promoted economic stability. The central bank invested a large amount of liquidity at the beginning of the year, which does not mean that this year's macro-control will have a major shift. 'The main tone of macro-control has not changed. It is still based on the incentive fiscal policy with a prudent monetary policy. However, in terms of specific policy operations, there will be more room for flexibility and operation.' Zhao Xijun said. In terms of supporting the development of private enterprises through RRR cuts, Zhao Xijun pointed out that the liquidity provided by the central bank to the financial system and financial market should be introduced into the real economy to directly support the development of the real economy and solve the problem of difficult and expensive financing. It should not allow sufficient liquidity to stay, or even flow into areas such as speculation or already existing bubbles. How to ensure the release of funds to the real economy? 'We must carry out precise investment and further unblock the monetary policy transmission mechanism, especially to further increase the positive incentives for financial institutions.' Guo Tianyong, a professor at the School of Finance of the Central University of Finance and Economics, emphasized that on the one hand, we must rely on the inclusiveness of commercial banks and other financial institutions. The financial sector invests; on the other hand, the central bank and the China Banking Regulatory Commission must strengthen external supervision to ensure that at least the funds invested in the private, small and micro sectors through targeted RRR cuts can be used in related fields. How to implement 'larger tax cuts and fee reductions'? On January 4, Premier Li Keqiang inspected the Inclusive Finance Departments of Bank of China, Industrial and Commercial Bank of China and China Construction Bank, and hosted a symposium at the China Banking and Insurance Regulatory Commission. He proposed to strengthen counter-cyclical adjustments of macroeconomic policies and further reduce taxes and fees. Measures, make good use of comprehensive and targeted RRR cuts to support private enterprises and small and micro enterprises in financing. 'Data from the National Bureau of Statistics show that the PMI index in November 2018 was 50%, hitting the critical point of the manufacturing boom and hitting a new low in recent years. This shows that entrepreneurs still lack confidence in the market prospects. The lack of confidence is behind the corporate tax burden. A series of factors such as priority and financial difficulties. The symposium highlighted that inclusive finance is a very important aspect of supporting small and micro enterprises.' Analysis by Gong Yuhang, Dean of China Enterprise Finance Research Institute. In order to further stimulate banks’ enthusiasm for investing in inclusive finance, the central bank announced on January 2 to adjust the assessment criteria for inclusive finance’s targeted RRR cut, reducing the assessment criteria for small and micro-enterprise loans to “single-account credit less than 5 million yuan”. 'Adjusted to 'Single account credit less than 10 million yuan'. On January 4, the central bank announced a RRR cut, which will help guide funds to be effectively invested in key groups of inclusive finance and better solve current financing problems.
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