The cost of private enterprise financing will be reduced continuously from July 1
From July 1, the People's Bank of China lowered the re-loan and re-discount rates. This is the second time the central bank has lowered the re-loan rate this year. In this regard, people in the industry generally believe that this reflects the continued efforts of the central bank in structural policies, which is conducive to improving the directness of policies. In the future, there is still room for the development of monetary policy. It will further reduce the policy interest rate, reduce the cost of bank funds, and guide financial institutions to make profits for the real economy.
Since July 1, the People's Bank of China has lowered the re-loan and re-discount rates. Among them, the interest rates for agriculture-supported refinancing and small loans were reduced by 0.25 percentage points. In addition, the central bank also lowered the financial stability re-loan rate by 0.5 percentage points. After adjustment, the financial stability re-loan rate was 1.75%, and the financial stability re-loan (extension period) interest rate was 3.77%.
This is the second time the central bank has lowered the re-loan rate this year. After the downward adjustment of 0.25 percentage points this time, the interest rates for the three-month, six-month, and one-year agriculture-supporting refinancing and small-finance refinancing are 1.95%, 2.15%, and 2.25%, respectively.
Regulation is more precise and effective
"At present, re-loan and rediscount tools are the core and main force of the central bank's structural monetary policy." Wang Qing, chief macro analyst of Oriental Jincheng International Credit Evaluation Co., Ltd. said.
Since this year, refinancing and discounting have played an important role. Since the outbreak of the New Coronary Pneumonia epidemic, the central bank has launched a special anti-epidemic re-loan of RMB 300 billion and inclusive re-loan of RMB 1.5 trillion and re-discount. Pan Gongsheng, deputy governor of the central bank, previously introduced that as of May 30, the 300 billion yuan special re-loan policy directly provided loans to the epidemic prevention and supply enterprises. It has issued 280 billion yuan loans to 7400 enterprises, and the remaining 20 billion yuan of special funds Hubei. The weighted average interest rate of these loans is 2.49%. After the fiscal discount, the actual financing interest rate of the enterprise is 1.25%. Use re-loans and rediscounts to support financial institutions to accumulate 480 billion yuan in preferential interest loans.
At the beginning of June, the central bank created 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, which provided 40 billion yuan of refinance Funds and 400 billion yuan re-loan funds.
Regarding the reduction in re-loan and rediscount interest rates, industry insiders generally believe that this reflects the continued efforts of the central bank in structural policies and is conducive to enhancing the directness of policies.
Wen Bin, chief researcher of China Minsheng Bank, said that refinancing and rediscounting are an important part of the monetary policy toolbox for direct access to the real economy, and lowering the interest rates for refinancing of agriculture and small refinancing and re-discounting rates will help reduce banks’ access to funds from the central bank. Cost, which in turn drives the financing costs of the “three rural”, small and micro enterprises and other groups down, improving the accuracy and effectiveness of monetary policy.
Wang Qing believes that the reduction in re-loan and re-discount rates will further increase the attractiveness of this policy tool for commercial banks, help to quickly increase the re-loan and re-discount balance, and guide banks’ financial resources to focus on private and small The micro-enterprise and other real economy fields are accurately delivered. While enhancing the effectiveness of counter-cyclical regulation of monetary policy, it also helps to avoid the sequelae of flooding.
Really benefit the real economy
The reduction in re-loan and re-discount interest rates is also due to the consideration of further guiding the reduction of corporate financing costs.
"The central bank accurately reduced the financing costs of the real economy and effectively benefited the real economy, which helped to stimulate the vitality of the micro-subjects." Zhou Maohua, an analyst at the Everbright Bank's Financial Market Department, believes that the central bank's reduction of re-loan and re-discounted interest rates is equivalent to a targeted "rate cut" "Directly and accurately reduce the cost of credit for the weak links in the real economy such as "Sannong", small and micro enterprises, etc. Prior to the "rate cut" in the loan market quoted interest rate (LPR), the central bank lowered the medium-term borrowing facility (MLF) interest rate to guide financial institutions to lower the loan interest rate, which did not have a directional characteristic.
The executive meeting of the State Council held on June 17 made it clear that through a series of policies, such as guiding loan interest rates and bond interest rates downwards, and issuing preferential interest rate loans, the financial system promoted a reasonable 1.5 trillion yuan profit to various enterprises throughout the year. Judging from the main measures, the meeting requires increased policy efforts in both quantity and price. On the one hand, it is necessary to maintain a reasonable and sufficient market liquidity to further ease the pressure on corporate funds; on the other hand, it is necessary to continue to guide interest rates downward and reduce corporate financing costs. It is worth noting that the meeting also emphasized enhancing the capabilities and motivation of financial services for small, medium and micro enterprises, preventing capital deviations and "idling".
"Improving the direct monetary policy mechanism of the real economy and reducing corporate financing costs are still the core tone of current monetary policy. Lowering re-loans and rediscounting interest rates is one of the links." Wen Bin believes that the 800 billion yuan re-launched in the previous two Loans and re-discounts have basically been put into operation. This time the interest rates for re-loans and re-discounts will be lowered, which will mainly play a role in reducing costs in the re-loan and re-discount of 1 trillion yuan.
Wang Qing noticed that recently, driven by the upward trend of market interest rate centers, the re-discount interest rate has risen sharply, which is significantly higher than the re-discount rate, which reverses the previous inverted state, which means that the current urgency to lower the re-discount rate has actually been somewhat different. decline. However, the central bank still lowered the rediscount rate at this time, indicating that the regulatory authorities have begun to take control measures to release the signal that continues to guide the decline of corporate financing costs.
There is still room for policy efforts
Regarding the next direction of monetary policy, industry experts believe that there is still room for future policy efforts and will continue to increase support for the real economy.
Zhou Maohua believes that from the current domestic and foreign environment, the central bank is more inclined to adopt structural and precise control measures to avoid excessive easing policies leading to financial chaos and local risk concentration.
Wang Qing predicts that the innovation of the central bank’s monetary policy tools will also focus on refinancing and re-discounting, and the amount of re-loaning and re-discounting may be further increased during the year.
The central bank recently held a second quarterly meeting of the Monetary Policy Committee to emphasize the effective use of the precise drip irrigation function of structural monetary policy tools, improve the "directness" of the policy, and continue to make good use of the 1 trillion yuan inclusive refinancing and rediscount quota. Newly created direct physical tools. Continue to unleash the potential of reform to promote the reduction of loan interest rates, guide financial institutions to increase support for the real economy, especially small and micro enterprises, and private enterprises, and increase the proportion of small and micro enterprise loans, credit loans, and manufacturing loans.
While maintaining reasonable and sufficient liquidity in monetary policy, in the second half of the year, it is still the policy focus to guide financing costs to further decline. Wang Qing believes that in the process of maintaining a moderate expansion of aggregate indicators such as broad money (M2) and social financing scale, the second half of the year may be through differential "rate cuts", such as guiding the 1-year and 5-year LPR quotes to differentiate downward In order to lower the financing cost of market entities with high employment relevance, such as private enterprises, small and micro enterprises, etc., the rate of targeted re-loan interest rates will be further reduced.
In the opinion of industry experts, while structural monetary policy is working, there is still room for aggregate policies. The central bank emphasized that it adheres to a moderate aggregate policy, promotes a virtuous cycle of finance and the real economy, and fully supports the work of “six stability” and “six guarantees”. Comprehensively use and innovate multiple monetary policy tools to maintain reasonable and sufficient liquidity.
Zhou Maohua believes that in the future, the central bank will still need to flexibly adjust liquidity according to macroeconomic and market changes through a variety of tools, including RRR cuts, interest rate cuts and MLF, to maintain reasonable abundance, unblock monetary policy transmission, and guide finance to support the real economy.
Wen Bin suggested that the next stage should continue to increase support for the real economy, continue to maintain reasonable and sufficient liquidity through RRR cuts, refinancing, etc., further reduce policy interest rates, reduce bank capital costs, and guide financial institutions to the real economy Make profits while strictly controlling the arbitrage of idle funds to ensure that credit resources are used in the required fields. (Economic Daily·China Economic Net reporter Chen Guojing)