New loans of 13.1 trillion yuan in the first seven months

The quality and efficiency of financial service entities continue to improve (authoritative release)

　　On the 25th, the State Council Information Office held a regular briefing on the State Council’s policies. Relevant persons in charge of the People’s Bank of China and China Banking and Insurance Regulatory Commission introduced the implementation of financial institutions’ policies to support the real economy and answered reporters’ questions.

Reduce the burden of market entities by more than 870 billion yuan in the first 7 months

　　"In general, the quality and efficiency of financial services to the real economy have continued to improve." Liu Guoqiang, deputy governor of the People's Bank of China, introduced that money and credit have grown at a reasonable rate since the beginning of this year, and the growth rate is significantly higher than last year. At the end of July, the growth rates of broad money supply M2 and social financing scale were 10.7% and 12.9%, respectively, which were 2 and 2.2 percentage points higher than the end of 2019. New loans in the first seven months were 13.1 trillion yuan, an increase of 2.4 trillion yuan year-on-year. At the same time, the corporate loan interest rate dropped significantly. In July, the corporate loan interest rate was 4.68%, a year-on-year decrease of 0.64 percentage points. In addition, the financing of small and micro enterprises "increased in volume, expanded in scope, and decreased in price." The year-on-year growth rate of inclusive small and micro loan balance was significantly higher than the growth rate of various loans, and the financing cost of small and micro enterprises was significantly reduced.

　　On August 17, the executive meeting of the State Council called for further implementation of policies and measures for financial support of the real economy to help market players develop in relief. The People’s Bank of China and the China Banking and Insurance Regulatory Commission will continue to work with relevant departments to resolutely implement financial support policies such as reducing the burden on market entities, maintain reasonable and sufficient liquidity, but do not engage in flood irrigation, and effectively play the role of precise drip irrigation as a structural direct monetary policy tool. Ensure that new financing flows mainly to the real economy, especially small and micro enterprises.

　　Since the beginning of this year, the financial sector has reduced interest rates, fees, deferred loan repayment and other measures in accordance with the principles of commercial sustainability, reducing the burden of market entities by more than 870 billion yuan in the first 7 months, and significantly increasing support for small and micro enterprises.

　　The burden reduction of more than 870 billion yuan consists of several aspects: reducing interest rates and reducing the burden of 470 billion yuan, of which LPR (loan market quoted interest rate) has led to a decline in loan interest rates and reducing the burden of 354 billion yuan. Under the bond interest rate, the burden of behavioral bond issuers will be reduced by 79 billion yuan; the inclusive small and micro credit loan support policy, the phased deferred debt and interest policy for small and micro enterprise loans, two direct monetary policy tools, and the previous deferred debt and interest policy, A total of 133.5 billion yuan was reduced; the bank reduced the burden of market entities by 204.5 billion yuan through reduction and exemption of service fees; and supported corporate restructuring and debt-to-equity swaps to reduce the burden by about 66 billion yuan.

　　"From August to December, the financial sector will continue to reduce the burden of market players by more than 600 billion yuan, and the total burden will be reduced by 1.5 trillion yuan for the whole year." Liu Guoqiang said.

New loans to the manufacturing industry have exceeded that of last year, and the structure of inclusive small and micro loans has been optimized

　　Xiao Yuanqi, chief risk officer and spokesperson of the China Banking and Insurance Regulatory Commission, introduced at the briefing that since the beginning of this year, the China Banking and Insurance Regulatory Commission has adopted a series of strong policy measures to increase effective capital supply, optimize credit investment structure, and reduce corporate financing costs. As of the end of July, manufacturing loans increased by 1.6 trillion yuan, surpassing the annual increase last year, of which new loans to high-tech manufacturing accounted for nearly 60%. At the same time, the credit structure of manufacturing loans has been further optimized. At the end of the second quarter, medium and long-term manufacturing loans increased by 684.2 billion yuan, and manufacturing credit loans increased by 669.4 billion yuan, achieving rapid growth.

　　"By the end of July, the balance of my country's inclusive small and micro loans was 13.7 trillion yuan, a year-on-year increase of 27.5%." said Sun Guofeng, Director of the Monetary Policy Department of the People's Bank of China.

　　"Since this year, the total growth of inclusive small and micro enterprise loans has been coordinated with structural optimization, and the availability of loans has improved significantly." Li Junfeng, director of the Inclusive Finance Department of the China Banking and Insurance Regulatory Commission, said that as the loan volume and number of households increase, the general Significant changes have also occurred in the structure of Hui small and micro loans: the first loan to small and micro enterprises and the amount of credit loans have both increased steadily. At the end of July, among the loans for inclusive small and micro enterprises, the balance of manufacturing, wholesale and retail loans accounted for Compared with 68%, credit loans accounted for 17%, an increase of 8 percentage points from the end of the previous year. From January to July, among the newly-increased inclusive small and micro enterprise loan households, more than 1.6 million first-borrowers accounted for newly issued inclusive loans. 16% of the number of small and micro enterprise loan households, an increase of 10% from the end of the previous year.

LPR has become the main reference for loan pricing by financial institutions

　　In August last year, the People's Bank of China reformed and improved the LPR formation mechanism. After a year of continuous promotion, remarkable results have been achieved.

　　Statistics show that the degree of marketization has increased significantly after the LPR reform. Since August last year, the LPR quotation level has gradually declined. The one-year LPR and the five-year-plus LPR reported in August this year were 3.85% and 4.65%, respectively.

　　"LPR has become the main reference for loan pricing by financial institutions." Liu Guoqiang said that in the past, financial institutions used benchmark interest rates for loan pricing, but now they mainly refer to LPR. At the end of December 2019, the proportion of new loans using LPR pricing has exceeded 90%. Starting from January 1, 2020, financial institutions will no longer use benchmark lending rates in floating-rate loan contracts. New loans have basically referred to LPR. Pricing. On the basis that the benchmark conversion of incremental loan interest rates has been basically completed, in March this year, the benchmark conversion of stock floating-rate loan pricing started as scheduled, and proceeded in an orderly manner in accordance with the principles of marketization and rule of law. The conversion is expected to be basically completed by the end of August.

　　Our reporter Wu Qiuyu