Chinanews Client Beijing, April 3 (Reporter Li Jinlei) did not wait to cut interest rates, but waited for the central bank to lower its quota.

On April 3, the People's Bank of China decided to lower the benchmark for small and medium-sized banks by 1 percentage point, releasing about 400 billion yuan of long-term funds; at the same time, it announced that it would cut the excess deposit reserve interest rate of financial institutions.

Data map: People's Bank of China. Photo by Zhang Xinlong of China News Agency

The third cut in the year

Specifically, the central bank decided to reduce the deposit reserve ratio by 1 percentage point for rural credit cooperatives, rural commercial banks, rural cooperative banks, village and town banks, and urban commercial banks operating only at the provincial administrative area. It was implemented in two places on May 15th, each time by 0.5 percentage points.

The first RRR cut in 2020 was on January 1, and the central bank decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on January 6, 2020, releasing more than 800 billion yuan of long-term funds.

The second reduction was on March 13th, and the central bank announced that it would implement a targeted reduction in inclusive finance from March 16th. It would target banks that meet the assessment standards by 0.5 to 1 percentage point, and release long-term funds of 550 billion yuan.

Before this downgrade, there were already clear signals.

The executive meeting of the State Council held on March 31 proposed to increase the re-discounting quota for small and medium-sized banks by 1 trillion yuan, and further implement targeted reductions for small and medium-sized banks.

Data Map: Bank staff counting currency. China News Agency reporter Zhang Yunshe

Release of long-term funds of about 400 billion yuan

"The targeted RRR cut can release about 400 billion yuan of long-term funds. On average, each small and medium-sized bank can obtain about 100 million yuan of long-term funds. This effectively increases the stable funding sources for small and medium-sized banks to support the real economy, and can also reduce the cost of bank funds by about 60 per year. Billion. "

A relevant official of the central bank said that after the RRR cut, the deposit reserve ratio of more than 4,000 small and medium deposit financial institutions has fallen to 6%. From the perspective of China ’s history and developing countries, the reserve reserve ratio of 6% Is a relatively low level.

There are "two points" unusual

——Specially targeted at small and medium banks

This targeted reduction is targeted at small and medium-sized banks. There are nearly 4,000 small and medium-sized banks that have received targeted reduction funds, accounting for 99% of the banking system.

Why did the targeted reduction target choose small and medium banks? The central bank said that further reducing the deposit reserve ratio of small and medium-sized banks will increase the financial strength of small and medium-sized banks and help guide them to issue loans to small and medium-sized micro-enterprises at a more favorable interest rate. Credit placements will increase support for the recovery and development of the real economy.

Wen Bin, chief researcher of China Minsheng Bank, told reporters from Chinanews that previously the government has issued corresponding requirements and encouragement measures for large state-owned banks, joint-stock banks, policy banking services inclusive finance, and small and medium-sized enterprises. By concern, a complete inclusive financial system is gradually taking shape. Within this system, different types of financial institutions will give play to their respective comparative advantages and work together to solve the difficult and expensive financing problems faced by small, medium and micro enterprises.

——Removal of excess deposit reserve ratio after 12 years

On the 3rd, the central bank also announced its decision to reduce the excess deposit reserve interest rate of financial institutions in the central bank from 0.72% to 0.35% from April 7. This is the first time that the central bank has reduced the excess reserve interest rate since November 2008.

Excess reserve is the money that depository financial institutions voluntarily deposit in the central bank after paying the statutory reserve, which is at the discretion of the bank, and can be used for liquidation and cash withdrawal at any time. The central bank pays interest on excess reserves, and its interest rate is the excess reserve interest rate. After it was reduced from 0.99% to 0.72% in 2008, it has not been adjusted.

This time the central bank cut the excess reserve interest rate from 0.72% to 0.35%, a large reduction, which can promote banks to improve the efficiency of capital use, and promote banks to better serve the real economy, especially small and medium-sized enterprises.

Data map: RMB. Photo by Li Jinlei

What impact?

-Good for the real economy

The analysis believes that the RRR cut effectively increases the stable funding sources for small and medium-sized banks to support the real economy, and can also reduce the cost of bank funds by about 6 billion yuan a year. It will help promote the reduction of the actual interest rates of small and micro-enterprises and private enterprises through bank transmission, and directly support entities. economic.

——Improve stock market confidence

Li Daxiao, chief economist of Anglo Securities, said that the RRR cut has a positive impact on the stability of the stock market. It is a very timely and important favorable policy. It is a timely rain. It will work in concert with the US Federal Reserve, the Bank of England, the European Central Bank and other countries to stabilize the world. The stock market has also helped.

-The property market may benefit

Zhang Dawei, chief analyst of Zhongyuan Real Estate, told a reporter from China News Network that although the reduction of the small and medium-sized banks ’direct impact on real estate has little direct impact, historically, as long as the reduction is required, it is definitely good for real estate and can ease the pressure on capital. The RRR cut will certainly ease the financial pressure on real estate companies. In addition, for home buyers, the mortgage price will be relatively stable.

Will interest rates be cut in the future?

Previously, the market was expecting a rate cut on deposits. However, at a press conference on April 3, Liu Guoqiang, deputy governor of the central bank, said that the benchmark interest rate for deposits is a "ballast stone" in the interest rate system and can be used as a tool, but it is special and needs to be considered in implementation. Got more.

He said, for example, the price situation, China's current CPI is significantly higher than the benchmark one-year deposit interest rate, the January-February CPI increased by 5.3% year-on-year, the deposit interest rate was 1.5%. In addition, we must also consider economic growth and internal and external balance factors, and whether too low interest rates will cause pressure on currency depreciation. In particular, the deposit interest rate is more directly related to ordinary people. If a negative interest rate is implemented, it must be fully evaluated and considered by ordinary people. (Finish)