Central Bank: A prudent monetary policy must be flexible, precise, reasonable and appropriate, and not make a sharp turn
China-Singapore Jingwei Client, February 8 According to the official website of the central bank, the central bank released a report on the implementation of China's monetary policy for the fourth quarter of 2020 on the evening of the 8th.
Speaking of the main policy ideas for the next stage, the central bank pointed out that a prudent monetary policy should be flexible, precise, reasonable and appropriate, adhere to a stable policy, not make sharp turns, grasp the timeliness and effectiveness of policies, and handle the relationship between economic recovery and risk prevention, and maintain Sustainability of normal monetary policy space.
Central bank data map.
Photo by Sino-Singapore Jingwei
The central bank pointed out that in the next stage, it is necessary to adhere to the general tone of the work of seeking progress while maintaining stability, based on the new development stage, implement the new development concept, build a new development pattern, adhere to the stable leadership, grasp the key points, keep the bottom line, dare to take responsibility, and consolidate and expand the epidemic Prevent and control the results of economic and social development, maintain policy continuity, stability, and sustainability, improve macroeconomic governance, build a modern central bank system, do a good job in cross-cyclical policy design, and promote economic aggregate balance, structural optimization, and internal and external balance. Continue to do a good job in the "six stability" and "six guarantees", promote the construction of a new development pattern, take the first step and see a new outlook.
The central bank stated that a prudent monetary policy should be flexible, precise, reasonable and appropriate, adhere to a stable policy, not make sharp turns, grasp the timeliness and effectiveness of policies, handle the relationship between economic recovery and risk prevention, and maintain the sustainability of normal monetary policy space. .
With the goal of “maintaining the stability of the currency value and promoting economic growth”, we will improve the money supply control mechanism, comprehensively use a variety of monetary policy tools, maintain reasonable and sufficient liquidity, and maintain the same nominal growth rate of money supply and social financing The economic growth rate is basically matched, the macro leverage ratio is maintained basically stable, and the policy intensity, rhythm and focus are flexibly adjusted according to changes in the situation.
Give full play to the precise drip irrigation role of structural monetary policy tools, and build a financial system to effectively support the real economy.
Improve the market-based interest rate formation and transmission mechanism, improve the central bank's policy interest rate system, deepen the reform of the loan market quoted interest rate, consolidate the results of the decline in the real interest rate of loans, and promote the steady and slow decline of the comprehensive financing costs of enterprises.
Give full play to the decisive role of market supply and demand in the formation of exchange rates, enhance the flexibility of the RMB exchange rate, strengthen macro-prudential management, stabilize market expectations, guide enterprises and financial institutions to establish a "risk-neutral" concept, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
Strengthen monitoring, analysis and anticipation management, and keep the price level basically stable.
Improve financial risk prevention, early warning, disposal, and accountability systems, properly handle individual institutional risks and risks in key areas, further consolidate the responsibilities of all parties, replenish bank capital through multiple channels, and firmly hold the bottom line of avoiding systemic financial risks .
Drive by innovation, lead by high-quality supply, and create new demands, and accelerate the formation of a new development pattern in which domestic and international cycles are the mainstay and the domestic and international dual cycles promote each other.
The central bank pointed out that first, a prudent monetary policy should be flexible, precise, reasonable and appropriate.
Comprehensive use of medium-term lending facilities, open market operations, re-lending, rediscounting and other monetary policy tools to meet the reasonable short-term, mid-term and long-term liquidity needs of financial institutions. The operation is accurate and effective, and both maintain reasonable and sufficient liquidity. Engage in flood irrigation.
Improve the central bank's long-term mechanism for regulating the liquidity, capital, and interest rate constraints created by the bank's currency, keep the money supply gates in place, and keep the economy near potential output.
Guide market interest rates to fluctuate around open market operating interest rates and medium-term lending facilities.
Improve the sustainable bank capital replenishment mechanism, support banks' issuance of perpetual bond products such as convertible perpetual bonds, increase support for small and medium-sized banks to issue perpetual bonds to supplement capital, and improve banks' ability to serve the real economy and prevent and resolve financial risks ability.
Improve macroeconomic governance, and promote the optimization, rational division of labor, and efficient coordination between monetary policy and fiscal, employment, industry, investment, consumption, environmental protection, and regional policy objectives.
The central bank said that the second is to make good use of the precise drip irrigation of re-lending, rediscounting and monetary policy tools that directly reach the real economy.
On the one hand, steadily adjust and continue the emergency policies issued during the special period, and continue to implement two monetary policy tools that directly reach the real economy, including the deferred debt repayment for small and micro enterprises and the inclusive credit loan support program for small and micro enterprises.
On the other hand, innovate and improve the structural monetary policy tool system, accurately design incentive compatibility mechanisms, guide financial institutions to increase support for related fields in line with the new development concept, continue to apply inclusive re-lending and rediscount policies, and increase Great financial support for technological innovation, small and micro enterprises, and green development.
Implement major decisions and deployments of carbon peak and carbon neutrality, do a good job in policy design and planning, establish a policy incentive and restraint system, and guide financial resources to tilt toward green development.
The central bank said that the third is to build a financial system to effectively support the real economy.
Improve the financial support innovation system, build a capital chain around the innovation chain and industrial chain, form a virtuous circle and triangular interaction between finance, technology and industry, and promote the large-scale application of new technology industrialization.
Promote the standardized development and innovation of supply chain finance, and cooperate with relevant departments to gradually implement specific supporting policies to accurately serve the integrity and stability of the supply chain industry chain.
Improve the rural financial service system, do a good job in consolidating and expanding financial services that effectively link the results of poverty alleviation 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 and food security.
Broaden the scope of rural collaterals in accordance with laws and regulations, and innovate rural financial products and services.
Continue to carry out in-depth projects to improve the financial service capabilities of small, medium and micro enterprises of commercial banks, improve external incentives and constraints, optimize internal bank policy arrangements, use technology to empower, and promote the formation of a long-term mechanism for dare to lend, willing to lend, energy lending, and meeting loans.
Guide financial institutions to increase credit support for key areas such as manufacturing.
Firmly insist on the positioning that houses are used for living, not for speculation, insist on not using real estate as a short-term economic stimulus, insist on stabilizing land prices, house prices, and expectations, and maintain the continuity, consistency and stability of real estate financial policies It is necessary to implement the prudent management system of real estate finance and improve the financial support housing leasing policy system.
The central bank pointed out that the fourth is to deepen the reform of interest rate and exchange rate marketization, and unblock the transmission channels of monetary policy.
Improve the market-based interest rate formation and transmission mechanism, improve the central bank policy interest rate system that uses the open market operating interest rate as the short-term policy interest rate and the medium-term lending convenience interest rate as the medium-term policy interest rate, promote the reform of the money market benchmark interest rate, and guide the market interest rate to center on the central bank policy interest rate center fluctuation.
Continue to deepen the reform of the LPR of the loan market, consolidate the results of the decline in the real interest rate of loans, and promote the gradual marketization of deposit interest rates.
Give full play to the role of market interest rate pricing self-discipline mechanism, standardize deposit interest rate pricing behavior, strengthen deposit management, prohibit local corporate banks from opening off-site deposits, strengthen the requirement for various loan entities to express annualized interest rates, maintain fair market competition, and effectively protect consumer rights .
Steadily deepen the market-oriented reform of the RMB exchange rate, improve the managed floating exchange rate system based on market supply and demand, with reference to a basket of currencies, maintain the flexibility of the RMB exchange rate, and play the role of exchange rate adjustment macroeconomics and automatic balance of payments stabilizers.
Stabilize market expectations, guide enterprises and financial institutions to establish a "risk-neutral" concept, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
Steadily promote the convertibility of RMB under capital account, improve the policy framework and infrastructure for the cross-border use of RMB, and increase the facilitation of the use of RMB in cross-border trade and investment.
According to the central bank, the fifth is to strengthen the construction of the basic system of the financial market, and effectively play the role of the financial market in stabilizing growth, adjusting structure, promoting reform, and preventing risks.
Support private enterprises to issue bonds for financing, and enhance the ability of financial services to serve the real economy.
Implement the "Administrative Measures on Information Disclosure of Corporate Credit Bonds" to promote the unification of corporate credit bond information disclosure standards.
Adhere to the principles of marketization and rule of law, and improve bond default risk prevention and handling mechanisms.
Strengthen the overall supervision of financial infrastructure, accelerate the interconnection of bond market infrastructure, and ensure the overall safe, stable and efficient operation of the financial market.
Steadily promote the two-way opening of the bond market and introduce more mid- to long-term investors.
The central bank pointed out that the sixth is to further promote the reform of financial institutions, continuously improve corporate governance, and optimize financial supply.
Persist in strengthening corporate governance as the core, deepen the reform of large commercial banks, and establish a modern financial enterprise system with Chinese characteristics.
Guide large-scale banks to sink their services, improve efficiency, and better serve small and micro enterprises and private enterprises.
Starting from the improvement of monetary, regulatory, taxation and other systems, we will encourage small and medium banks and rural credit cooperatives to focus on their main responsibilities and main businesses, return to the local area and their origins, and establish effective governance checks and balances.
Reform and optimize development-oriented and policy-oriented finance, implement business classification accounting, and enhance the ability to support national strategies.
The central bank emphasized that the seventh is to improve the financial risk prevention, early warning, handling, and accountability systems.
Maintain financial security, improve the financial risk prevention, early warning and disposal system, and accountability system, pay close attention to filling the shortcomings of the supervisory system, and firmly hold the bottom line of avoiding systemic financial risks.
Ensure that financial innovation is developed under the premise of prudential supervision, and the quality and competitiveness of inclusive financial services will rise steadily.
Carry out a full-coverage stress test on the banking system, support banks, especially small and medium-sized banks in replenishing capital and improving governance through multiple channels, and enhance the robustness and sustainable operation capabilities of financial institutions.
Increase the preparation and write-off of non-performing loan loss reserves, improve the establishment of the deposit insurance system and institutional settings, steadily advance various risk mitigation tasks, do a good job in mitigating existing risks, and further clarify and compact the responsibilities of all parties. Risk management joint efforts.
Resolutely curb the rebound of various risks, and resolutely prevent local risks from developing into systemic risks and regional risks from developing into national risks.
(Zhongxin Jingwei APP)