Monetary policy should be "stability" and continue to stimulate the vitality of market players-People's Bank of China Governor Yi Gang talks about financial hot issues in 2021
Xinhua News Agency, Beijing, January 8th, title: Monetary policy must be "stable" and continue to stimulate the vitality of market entities-People's Bank of China Governor Yi Gang talks about hot issues in 2021
Xinhua News Agency reporter Wu Yu
2021 is the first year of the "14th Five-Year Plan".
As the only major economy in the world that has achieved positive economic growth, China's financial policies have attracted much attention.
What is the trend of my country's monetary policy this year?
How to continue to stimulate the vitality of market players?
How to build a dense financial safety net?
Yi Gang, governor of the People's Bank of China, recently accepted an interview from Xinhua News Agency on hot issues in the financial sector in 2021.
Monetary policy must be "stable"
The Central Economic Work Conference proposed that macro policies should maintain continuity, stability, and sustainability.
How will the People's Bank of China implement a sound monetary policy in 2021 and maintain the necessary support for economic recovery?
"In 2021, the monetary policy should be'stable' and maintain the sustainability of the normal monetary policy space." Yi Gang said that in terms of total amount, a comprehensive use of various monetary policy tools to maintain reasonable and abundant liquidity and maintain broad money (M2) The growth rate of social financing scale basically matches the nominal economic growth rate.
In terms of structure, we will give full play to the precise drip irrigation of monetary policy tools, and increase financial support for key tasks such as technological innovation, small and micro enterprises, and green development.
At the same time, deepen the reform of interest rate and exchange rate marketization, consolidate the results of the decline in real interest rates of loans, and enhance the flexibility of the RMB exchange rate.
During the epidemic, special and phased policies will be withdrawn after completing their mission. How to avoid the superimposed effect of policy withdrawal?
In this regard, Yi Gang said that China has not adopted zero or even negative interest rates, nor has it implemented a quantitative easing policy. It is one of the few major economies that implement normal monetary policies, and there has been no “flood flooding” for a long time.
Therefore, with regard to China's monetary policy, the exit problem is relatively small.
The growth rate of macro leverage is expected to return to a basically stable track this year
Affected by the epidemic, my country's macro leverage ratio will rise in stages in the first half of 2020.
In the new year, how will the People's Bank of China balance economic recovery and prevent risks?
"From a macro point of view, we must stabilize the macro leverage ratio." Yi Gang said that in 2020, the impact of the epidemic will lower the GDP growth rate, making my country's macro leverage ratio, that is, the ratio of total debt to GDP, significantly increased.
Since the third quarter of last year, the growth rate of the macro leverage ratio has slowed down, and it is expected that this year can return to a basically stable track.
Yi Gang emphasized that while supporting the development of the real economy, pay attention to preventing the accumulation of financial risks.
It is necessary to prudently handle individual institutional risks and risks in key areas, improve financial risk prevention, early warning, disposal, and accountability systems, further consolidate the responsibilities of all parties, and complement the shortcomings of the regulatory system.
The risk treatment process adheres to laws and regulations, and is stable and orderly.
Improve the long-term risk management mechanism, and supplement the capital of small and medium-sized banks through multiple channels.
Strengthen behavior supervision and strictly investigate and deal with violations of laws and regulations.
Support the real economy, especially the development of small and micro enterprises
The financial system always pays attention to the development of market entities such as small and micro enterprises, individual industrial and commercial households, and has achieved the goal of giving 1.5 trillion yuan to the real economy in 2020.
How to improve the inclusiveness of financial services this year and better support the development of the real economy, especially small and micro enterprises?
Yi Gang said that the financial system will further strengthen the financial system to effectively support the real economy, and in accordance with the principles of marketization, rule of law, and internationalization, improve a highly adaptable, competitive and inclusive modern financial system, and improve incentive and restraint mechanisms. , Design and innovate structural monetary policy tools, and continue to support the development of the real economy, especially small and micro enterprises.
This year, we will focus on four areas:
——Continue to implement the Inclusive Small and Micro Enterprise Loan Extension Support Tool and the Inclusive Small and Micro Enterprise Credit Loan Support Program, and the support for the two tools remains unchanged.
Continue to use the inclusive re-lending and rediscount policy to guide financial institutions to increase their support for the "three rural", small and micro enterprises, and private enterprises.
——Continue to carry out the financial service capacity improvement project of commercial banks for small, medium and micro enterprises, and support commercial banks to expand loans for agriculture, rural areas and farmers, small and micro enterprises, and manufacturing.
Encourage banks to comprehensively evaluate the credit risk level of small and micro enterprises and reduce their reliance on mortgage guarantees.
——Continue to give play to the leading role of bond financing support tools for private enterprises, support banks to issue small and micro financial bonds, promote supply chain bills and receivables confirmation, and promote corporate bond issuance financing.
Guide the market to launch more supply chain financial products and support the financing of small and micro enterprises upstream and downstream of the industrial chain.
——Improve the rural financial service system.
We will consolidate and expand the results of poverty alleviation and effectively link financial services with rural revitalization, and maintain the overall stability of financial assistance policies for poverty alleviation areas.
Increase credit investment in key agricultural areas such as seed industry development.
Broaden the scope of agricultural and rural collaterals, optimize the risk assessment mechanism, and support eligible entities to directly finance through equity, bonds, etc.
Continue to deepen the reform of interest rate and exchange rate marketization
The conversion of stock floating-rate loan pricing benchmarks has been successfully completed in 2020, and recent trends in the RMB exchange rate have also attracted more attention.
In 2021, what other measures will be introduced in the reform of interest rate and exchange rate marketization?
According to Yi Gang, in 2021, the People's Bank of China will further unblock the transmission channel of LPR to loan interest rates, and promote the gradual marketization of deposit interest rates by deepening the LPR reform.
Strengthen the management of deposits on the Internet platform and deposits in other places, maintain the order of the deposit market, and stabilize the cost of bank liabilities.
Further improve the central bank's policy interest rate system and the benchmark money market interest rate.
"In 2020, the flexibility of the RMB exchange rate will increase, and it will better serve as an automatic stabilizer for the macro economy and balance of payments, and increase the autonomy of monetary policy." Yi Gang believes that the RMB exchange rate appreciated last year, mainly due to the fundamentals of the Chinese economy. Reflection.
China took the lead in controlling the epidemic, resuming work and production, taking the lead in realizing positive economic growth, and its fundamentals are better than other major economies.
At the same time, the strong trend of the RMB exchange rate is also related to the weakening of the US dollar index.
Yi Gang said that in 2021, the market will continue to play a decisive role in the formation of the RMB exchange rate and optimize the allocation of financial resources.
Adhere to a managed floating exchange rate system.
Pay attention to anticipatory guidance.
Realize the basic stability of the RMB exchange rate at a reasonable and equilibrium level.
Continue to promote high-level financial opening up
In the past year, the pace of China’s financial market opening to the outside world has not been disrupted by the epidemic. Fitch has become the second international rating company to enter China, and the inclusion of Chinese bonds in the FTSE Russell Index has a clear timetable... In the next stage, the People’s Bank of China will How to continue to promote high-level financial opening to the outside world?
"The opening of the financial industry is an inevitable requirement for the construction of a new development pattern." Yi Gang said that the next step is to fully implement the pre-access national treatment plus negative list management system, effectively transform the concept of openness, and promote systematic and institutionalized opening.
Further improve various supporting systems in the financial sector, and promote the integration of regulatory models and systems with internationally accepted rules.
Promote the opening of the financial industry, the reform of the RMB exchange rate formation mechanism, and the internationalization of the RMB.
After opening wider to the outside world, corresponding financial supervision must keep up.
Yi Gang emphasized that it is necessary to build a regulatory framework and risk prevention and control system compatible with a higher level of openness.
Strengthen supervision and coordination to form a joint supervision force.
Improve the monitoring of cross-border capital flows, improve the professionalism and effectiveness of financial supervision, and maintain financial stability.
Give full play to the three major functions of finance to support green development
The Central Economic Work Conference proposed to do a good job in carbon peaking and carbon neutrality.
What arrangements does the financial industry have in terms of serving green development and promoting the realization of related goals?
Yi Gang believes that achieving the goal of carbon peak and carbon neutrality means that my country will undergo profound changes in all aspects such as industrial structure, energy structure, investment structure, and lifestyle.
Serving the strategic deployment of carbon peak and carbon neutrality is one of the focuses of financial work this year and in the future.
"China's green finance started early and has a relatively good foundation. At present, China's green loan balance exceeds 11 trillion yuan, ranking first in the world. The green bond balance is more than 1 trillion yuan, ranking second in the world." Gang said that the key to the next step is to do a good job in the design and planning of green finance policies, and give play to the three major functions of finance to support green development-resource allocation, risk management, and market pricing.
To this end, he proposed to gradually improve the five pillars of the green financial system.
The first is to improve the green financial standard system, and do a good job of statistics, evaluation and supervision; the second is to improve the supervision and information disclosure requirements of financial institutions, and to publicly disclose carbon emission information to the society; the third is to build a policy incentive and restraint system to increase carbon emission reduction Preferential loan issuance, scientifically set green asset risk weights, etc.; fourth is to continuously improve green financial products and market systems, develop green credit, green bonds, green funds and other products, build carbon markets, and develop carbon futures; fifth, strengthen international cooperation in green finance , Green finance standards should be “domestically unified and internationally integrated”, and strive to complete the “China-EU Green Finance Common Classification Catalog” within this year.