From July 1st, the re-loan and re-discount rates will be reduced.
Precise drip irrigation benefits the real economy (Ruijing)
Reporter Kong Dechen
Since July 1, the People's Bank of China has lowered the re-loan and re-discount rates. This is the second time the central bank has lowered the re-loan rate this year. Industry insiders pointed out that lowering re-loans and rediscounting interest rates will help commercial banks increase their ability and enthusiasm to support the real economy, achieve precise drip irrigation, and benefit the real economy. It is expected that in the second half of the year, we will continue to innovate the monetary policy that directly reaches the real economy, guide the financing costs further down, and the stable monetary policy will be more flexible and appropriate.
Effective control of precise drip irrigation
The People's Bank of China issued a notice to lower the re-loan and re-discount rates from July 1. 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 interest rate by 0.5 percentage points. After adjustment, the financial stability re-loan interest rate was 1.75%, and the financial stability re-loan (extension period) interest rate was 3.77%. After the downward adjustment of 0.25 percentage points this time, the interest rates for the three-month, six-month, and one-year agricultural refinancing and small refinancing loans were 1.95%, 2.15%, and 2.25%, respectively.
This year, refinancing and rediscounting have played an important role in ensuring the operation of enterprises. Earlier, the central bank issued 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, introduced that as of May 30, the special refinancing policy of 300 billion yuan directly provided loans to the epidemic prevention and supply enterprises, and 280 billion yuan of loans have been issued to 7400 enterprises. 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%. The use of re-loans and rediscounts to support financial institutions to accumulate 480 billion yuan in preferential interest loans.
"This is a reduction in the standard for refinancing and re-discounting of these funds, which can be said to be'precision drip irrigation' and effective regulation." Zeng Gang, deputy director of the National Finance and Development Laboratory, said in an interview with this reporter that refinancing, The re-discounted funds are mainly used for the part of the loan that protects the operation of the enterprise during the epidemic prevention and control. The precise interest rate cuts reduce the cost of re-loaning and re-discounting of the entities that use this part of the funds, which is conducive to reducing the cost of banks obtaining funds from the central bank, which in turn drives The financing costs of the “three rural”, small and micro enterprises and other groups have gone down, improving the accuracy and effectiveness of monetary policy. "The reduction in re-loan and re-discount interest rates this time can also avoid'flood flooding' and guide banks' financial resources to focus on the precise investment of the real economy such as private, small and micro enterprises."
Let the real economy keep small and micro entities
The executive meeting of the State Council held earlier made it clear that through the introduction of a series of policies, such as lowering loan interest rates and bond interest rates, and issuing preferential interest rate loans, the financial system promoted a reasonable 1.5 trillion yuan in profits for various enterprises throughout the year. "Precise interest rate cuts are an important part of implementing the 1.5 trillion yuan of financial institutions to benefit the real economy proposed by the executive meeting of the State Council." Zeng Gang said, "For those who use re-loans and rediscounts, further promote their interest rates. The downward cost is actually the central bank's concession to the real economy through monetary policy adjustment."
Reducing corporate financing costs remains a key part of current monetary policy. In order to protect small and micro subjects, the state has introduced a series of policy combinations. On July 1, the Executive Meeting of the State Council adopted the Regulations on Guaranteeing Payments for SMEs (Draft), which stipulates the conclusion of contracts, funding guarantees, and payment methods for agencies, public institutions, and large enterprises with SMEs, standardizes the payment period, and clarifies The inspection and acceptance requirements stipulate that payment shall not be refused or delayed on the grounds of change of the person in charge, waiting for acceptance, final account audit, etc., and a payment information disclosure system shall be established; the Ministry of Finance will issue a notice on the 1st to issue an epidemic prevention and control key guarantee enterprise discount loan discount fund budget A total of 2.892885 billion yuan, all of which are direct funds, run through the entire link of fund allocation, allocation and use, and remain unchanged. The Ministry of Finance requires that the management of the use of funds be effectively strengthened to ensure that funds are disbursed in time and earmarked for special purposes, to meet the actual interest-repayment fund requirements of the enterprise, reduce the financing burden of the enterprise, and strengthen the guarantee of enterprise funds.
"The recent series of policy combinations has shown the country's determination to alleviate the impact of the epidemic on enterprises, especially small and medium-sized enterprises." Zeng Gang believes that the "Regulations on the Guarantee of Payments to Small and Medium-sized Enterprises (Draft)" was issued to protect small and medium-sized enterprises. In order to alleviate the tension of SMEs’ capital chain from the payment level, effectively resolve the financing difficulties of SMEs and improve their capital flow.
There is still room for monetary policy
Zeng Gang believes that guiding the further downward cost of financing is still the policy priority. In the second half of the year, a stable monetary policy will be more flexible and appropriate, and there is still much room for the development of China's monetary policy.
The central bank recently held a second quarterly meeting of the Monetary Policy Committee to emphasize that the precise drip irrigation of structural monetary policy tools should be effectively used to improve the "directness" of the policy, and continue to make good use of 1 trillion yuan of inclusive refinancing and rediscount quotas. 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.
Zeng Gang pointed out that while structural monetary policy is in force, there is still room for aggregate policies. "It is necessary to improve the efficiency of policies through the innovation of precision tools."
"In the future, prudent monetary policy will be more flexible and moderate. Flexible and moderate refers to short-term response, and prudent refers to long-term policy attitude." Zeng Gang said that the next stage should continue to increase support for the real economy, continue to reduce Standard, re-loan and other ways to maintain reasonable and sufficient liquidity, promote the virtuous cycle of finance and real economy, and fully support the work of "six stability" and "six guarantees".