The Central Bank Holds a Symposium on Analysis of the Monetary and Credit Situation of Financial Institutions

The Central Bank Holds a Symposium on Analysis of the Monetary and Credit Situation of Financial Institutions

Every time reporter Xiao Shiqing

According to the central bank’s website, on August 23, 2021, Yi Gang, Governor of the People’s Bank of China and Director of the Office of the Financial Stability and Development Commission of the State Council, presided over a symposium on the analysis of the monetary and credit situation of financial institutions to study the current monetary and credit situation and plan the next step of monetary and credit work.

The meeting pointed out that we should make overall plans for the convergence of macroeconomic policies for the next two years, maintain the stability of monetary policy, enhance the forward-looking and effectiveness, put the service of the real economy in a more prominent position, support high-quality economic development with moderate currency growth, and help small and medium-sized enterprises. Enterprises and difficult industries continue to recover and maintain economic operations within a reasonable range.

The reporter noted that the Governor of the Central Bank, Yi Gang, emphasized in his summary that it is necessary to promote the decline of real loan interest rates and that the comprehensive financing costs of small and micro enterprises have been steadily decreasing. It is necessary to continue to promote the replenishment of bank capital and improve the ability of banks to provide credit.

　　Persist in advancing the adjustment of credit structure

The meeting pointed out that it is necessary to continue to promote the adjustment of the credit structure, increase support for key areas and weak links, so that more funds flow to technological innovation, green development, and more flow to small, medium and micro enterprises, individual industrial and commercial households, and new agricultural business entities. To promote the decline of actual loan interest rates, the overall financing costs of small and micro enterprises have steadily decreased. It is necessary to continue to promote the replenishment of bank capital and improve the ability of banks to provide credit.

The “Daily Economic News” reporter noted that the current LPR has become the benchmark for the pricing of bank loan interest rates, and most of the newly issued loans of financial institutions have used LPR as the benchmark pricing, that is, “loan interest rate = LPR quotation + spread.” In 2020, the central bank will guide loan interest rates downward by lowering LPR and reducing spreads.

Data from the central bank showed that in June, the weighted average interest rate of loans was 4.93%, a record low since statistics. Among them, the weighted average interest rate of general loans was 5.20%, a year-on-year decrease of 0.06 percentage points, a record low since statistics. The weighted average interest rate of corporate loans was 4.58%, a year-on-year decrease of 0.06 percentage points, which was at a historically low level. The effect of financial support on the real economy continued to appear.

In addition, the central bank pointed out in the second quarter monetary policy implementation report that it will deepen the reform of interest rate and exchange rate marketization and unblock the transmission channels of monetary policy. Improve the market-based interest rate formation and transmission mechanism, continue to release the potential of LPR reform, improve the central bank’s policy interest rate system, unblock interest rate transmission channels, and promote further reductions in actual loan interest rates. Optimize the supervision of deposit interest rates, maintain the order of competition in the deposit market, maintain the basic stability of bank debt costs, urge banks to transfer policy dividends to the real economy, enhance the competitiveness of the loan market for small and micro enterprises, and effectively make financing for small and micro enterprises more convenient and comprehensive in financing costs Stable and down.

　Maintain the stability of monetary policy

The meeting pointed out that we should coordinate the macro policy for the next two years, maintain the stability of monetary policy, enhance the forward-looking and effectiveness, put the service of the real economy in a more prominent position, and support high-quality economic development with moderate currency growth. Help small and medium-sized enterprises and difficult industries continue to recover, and maintain economic operations within a reasonable range.

On July 30, the Politburo meeting of the CPC Central Committee also pointed out that it is necessary to do a good job in the cross-cycle adjustment of macro policies, maintain the continuity, stability, and sustainability of macro policies, make overall plans for the convergence of macro policies for the next two years, and keep the economy operating in a reasonable manner. Interval. A prudent monetary policy must maintain reasonable and sufficient liquidity to help small and medium-sized enterprises and difficult industries continue to recover. It is necessary to enhance the autonomy of macroeconomic policies and keep the RMB exchange rate basically stable at a reasonable and balanced level. Do a good job in ensuring the supply of bulk commodities and stabilizing prices.

In his summary, Yi Gang emphasized that it is necessary to continue to do a good job of cross-cycle design, link the credit work in the second half of this year and the first half of next year, increase credit support to the real economy, especially small, medium and micro enterprises, and enhance the stability of total credit growth. , To maintain the growth rate of money supply and the scale of social financing basically matching the growth rate of the nominal economy.

The financial statistics released by the central bank recently showed that at the end of July, the balance of broad money (M2) was 230.22 trillion yuan, an increase of 8.3% year-on-year, and the growth rate was 0.3 and 2.4 percentage points lower than the end of the previous month and the same period of the previous year. Narrow money (M1) ) The balance was 62.04 trillion yuan, a year-on-year increase of 4.9%, and the growth rate was 0.6 and 2 percentage points lower than the end of last month and the same period of last year respectively; the balance of currency in circulation (M0) was 8.47 trillion yuan, a year-on-year increase of 6.1%. At the end of July, the balance of RMB deposits was 225.49 trillion yuan, a year-on-year increase of 8.6%, and the growth rate was 0.6 and 1.7% lower than the end of the previous month and the same period of the previous year, respectively.

Editor in charge: Zhang Mei