The People’s Bank of China Focuses on Five Major Articles to Optimize Monetary Policy Structure
A recent report released by the People’s Bank of China highlights the focus on five major articles to optimize the monetary policy structure and further enhance the credit structure. The report emphasizes the dual functions of the total volume and structure of monetary policy tools and the continuous effort to optimize the credit structure.
In the past few years, the People’s Bank of China has been actively enriching its monetary policy toolbox and making significant progress in completing the five major articles aimed at optimizing the credit structure. According to the China Monetary Policy Implementation Report for the Fourth Quarter of 2023, released by the People’s Bank of China, significant progress has been made in various areas.
Inclusive finance has seen substantial support, with the Inclusive Small and Micro Loan Support Instrument providing a total of 55.4 billion yuan in incentive funds to local corporate financial institutions, resulting in an increase of 3,322.2 billion yuan in loans benefiting small and micro businesses by the end of 2023.
The report also highlights progress in green finance, with substantial increases in the balances of carbon emission reduction support tools and special reloans to support the clean and efficient use of coal by the end of 2023.
Furthermore, science and technology finance and pension finance have also seen positive developments, with increases in the balances of re-loans for technological innovation, special re-loans for equipment renovation, and special re-loans for inclusive pensions in various provinces.
Looking ahead, the report outlines the next steps to fully utilize the dual functions of the total volume and structure of monetary policy tools. It emphasizes the focus on key points, being reasonable and appropriate, and completing the five major articles on technology finance, green finance, inclusive finance, pension finance, and digital finance.
The efforts made by the People’s Bank of China to optimize the monetary policy structure are crucial for promoting economic development and addressing the financial needs of various sectors. The comprehensive approach outlined in the report demonstrates a commitment to ensuring a well-functioning and supportive monetary policy framework.
Report by Ren Jun and Wu Yu.