(Economic Observation) Why did the People's Bank of China launch two new monetary policy tools?
China News Agency, Beijing, June 1st (Reporter Wei Xi) The People's Bank of China has launched two new monetary policy tools. Since the news came out, the market has received almost applause. On the evening of June 1, the official version of the explanation from the People's Bank of China came.
The central bank said: Create two monetary policy tools directly to the real economy, one is the Pratt & Whitney small and micro enterprise loan extension support tool, and the other is the Pratt & Whitney small and micro enterprise credit loan support plan, further improve the structural monetary policy tool system, and continue to strengthen Serving the relevance and gold content of policies for small, medium and micro enterprises.
What are the two monetary policies?
Pratt & Whitney small and micro enterprise loan extension support tool. In short, small and medium enterprises can't afford the loan for the time being, and can postpone principal and interest payment until March 31, 2021. It is expected that the extension policy can cover the inclusive principal of inclusive small and micro enterprises about 7 trillion yuan.
In order not to let the lending banks rush to let the enterprises repay the loans, the People's Bank of China provided 40 billion yuan of incentive funds to encourage local banks to allow small and medium-sized enterprises to postpone repayment.
This 40 billion yuan is about 1% of the deferred loan principal of the local corporate bank. It is expected that the deferred loan principal of the local corporate bank will be supported by about 3.7 trillion yuan, effectively easing pressure on small and micro enterprises to repay principal and interest. 1% of this principal can be regarded as the central bank's compensation for the bank's accrued interest costs.
If the "P&W small and micro enterprise loan extension support tool" can temporarily relieve the enterprises that have already loaned, then the "P&W small and micro enterprise credit loan support plan" makes the market happy: it allows more previously unavailable bank funds Supported small and micro enterprises can obtain credit loans without guarantee or mortgage.
As we all know, small and micro enterprises have a high operating risk, and banks generally require mortgage guarantees when issuing loans. At present, China's small and medium-sized banks only provide about 8% of credit loans.
The central bank said that inclusive small and micro enterprises benefiting from the plan should promise to keep their jobs basically stable, and it is expected that credit loan support will enable local method banks to issue new inclusive small and micro enterprise credit loans of about 1 trillion yuan, effectively easing financing for small and micro enterprises Difficult problem.
Why are these two policies popular?
In short, these two monetary policy tools are “especially thirst-quenching” and “direct acupuncture”.
It is particularly thirsty, because the policy tools reach the real economy and directly to small and medium-sized enterprises, and solve the problem of "lack of money" that some small and medium-sized enterprises face. In fact, many companies can overcome the difficulties by gently giving them a hand in difficult times.
Point acupuncture directly, because the new policy tools can allow enterprises with loans to really postpone the repayment of principal and interest; those who cannot get loans can obtain funds through credit loans, without guarantees or mortgages.
Wen Bin, chief researcher of Minsheng Bank, said: "Overall, the Pratt & Whitney Small and Micro Enterprise Credit Loan Support Program, this innovative monetary policy tool that directly reaches the real economy, can increase the financial institutions’ impact on the real economy, especially small and micro. The support of enterprises can solve the problems of financing difficulties and expensive financing for small and micro enterprises, improve the availability of loans and reduce the cost of comprehensive financing; on the other hand, this monetary policy tool can also further improve the ability of local small and medium banks to support small and micro enterprises ."
Zhang Jiqiang, deputy director of Huatai Securities Research Institute and chief analyst of fixed income research, believes that the key to the policy in the second quarter is to help companies survive the epidemic and lay a healthy micro-subject foundation for future recovery. This combination of boxing policies improves the directness of the policy, helps to protect enterprises, and thus guarantees employment and people's livelihood. (Finish)