The Ministry of Finance responded to the People’s Bank of China’s turnover of profits in recent years: it is a common practice in my country to arrange for specific state-owned financial institutions and specialized institutions to hand over profits.

The Ministry of Finance’s website reported on March 8 that the government work report proposed that this year, certain state-owned financial institutions and franchised institutions should turn over the profits they have accumulated in recent years in accordance with the law.It is reported that the peopleBankIt is one of the paying units.Relevant responsible comrades of the Ministry of FinanceBankWhen answering a reporter’s question about turning over the balance of profits in recent years, he said that it is a common practice in my country to arrange for specific state-owned financial institutions and franchised institutions to turn over profits, and it is also an important means of coordinating financial resources and adjusting funds across the year, including China National Tobacco Corporation, China Investment Corporation wait, peopleBankIt is also one of the payment units.

The above-mentioned responsible comrades explained that, according to Article 39 of the Law of the People’s Republic of China on the People’s Bank of China, “the income of the People’s Bank of China in each fiscal year is deducted from the expenditure for that year, and the total reserves are drawn according to the proportion approved by the financial department of the State Council.net profitIt is also a common practice in major economies in the world that the profits of the central bank are turned over to the public finance. The Federal Reserve Act, the Bank of Japan Act, and the Bank of England Act have similar Provisions.

The above-mentioned responsible comrades said that since the outbreak of the epidemic, in order to cope with possible risks and challenges, my country has always reserved policy space for fiscal policy measures. One of the measures reserved for policy space is to suspend the surrender of profits to certain state-owned financial institutions and specialized institutions to meet emergency needs. Therefore, the relevant institutions have formed some surplus profits to be turned over, and these surplus profits should be turned over. Considering the current and the long-term, with the implementation of the new combined tax and fee support policy this year, upon approval in accordance with the procedures, certain state-owned financial institutions and specialized institutions will be arranged to hand over part of the balance of profits formed before 2021 this year. These funding arrangements are used to significantly increase transfer payments to local governments, helping local finance, especially county and district finance, to ease the pressure of revenue reduction. The above-mentioned transfer payment funds will be included in the management of the direct mechanism, which will quickly and accurately reach the grassroots level in cities and counties, and directly benefit enterprises and people.

(Article source: ChinasecuritiesReport · China Securities Network)

Article source: China Securities Journal China Securities Network

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Original title: The Ministry of Finance responded to the People’s Bank of China’s turnover of profits in recent years: It is a common practice in my country to arrange for specific state-owned financial institutions and franchised institutions to hand over profits