Stable storage, expansion, cost reduction, and promotion of opening up
Strengthen the implementation of prudent monetary policy (new economic orientation)
Our reporter Wu Qiuyu
A few days ago, the State Council launched a package of policy measures to stabilize the economy.
What are the monetary and financial policies?
What will be the focus of support?
How to promote the implementation as soon as possible?
The relevant persons in charge of the People's Bank of China and the State Administration of Foreign Exchange made an interpretation.
Increase support for small and micro enterprises
"The package of monetary and financial policies follows the general idea of 'stabilizing the stock, increasing the volume, reducing costs, and promoting opening up', strengthens policy guidance, gives play to the role of the market, timely and accurately benefits the trapped groups and key areas, and helps stabilize the broader economic market." Pan Gongsheng, deputy governor of the People's Bank of China and director of the State Administration of Foreign Exchange, introduced that the package of policies and measures issued by the State Council to stabilize the economy includes 33 specific policies in 6 areas, including 5 monetary and financial policies, and other complementary policies11 item.
Specifically, these policies mainly involve five aspects:
First, focus on market players.
Encourage the implementation of the policy of deferring principal and interest repayment for micro, small and medium-sized enterprises, individual industrial and commercial households, truck drivers, and personal housing and consumer loans affected by the epidemic.
Increase the incentive intensity for inclusive small and micro loans issued by local corporate banks, and give incentives based on 2% of the balance increment.
At the same time, innovate and optimize means of commercial bills of exchange, accounts receivable financing, financing guarantees, etc., and increase support for the financing of small and micro enterprises.
The second is to focus on effective investment.
Continue to guide financial institutions to increase the stability of total credit growth, and increase credit support for key areas such as water conservancy, transportation, energy and other infrastructure construction and major projects through the establishment of a government-bank-enterprise docking mechanism.
The third is to focus on reducing financing costs.
Deepen the reform of the loan market quoted rate (LPR), give play to the guiding role of the LPR, and drive the loan interest rate of enterprises to remain stable and moderate.
Supervise and guide the financial market infrastructure to comprehensively sort out charging items, and exempt private enterprise bond financing transaction fees.
Fourth, focus on key areas.
Make good use of structural monetary policy tools and increase financial support for key areas such as transportation and logistics, food and energy security, technological innovation, and stability of industrial and supply chains.
Fifth, focus on opening to the outside world.
Support qualified high-tech and "specialized, special and new" enterprises to carry out pilot projects of foreign debt facilitation quotas, enrich foreign exchange market products, improve enterprises' exchange rate hedging capabilities, and further optimize and facilitate foreign institutional investors to invest in China's bond market.
Pan Gongsheng said that when implementing monetary and credit policies, we should pay attention to three principles: first, while stabilizing economic growth, it is conducive to long-term sustainable economic development; second, while stabilizing economic growth, maintaining employment stability, price stability and international Balance of payments; third, while stabilizing economic growth, guide financial institutions to adhere to market-oriented and prudent operations, and effectively prevent financial risks.
Loan deferral policy supports stronger and wider benefits
The executive meeting of the State Council held recently proposed to support banks to defer principal and interest repayment within the year for loans to small and medium-sized enterprises and individual industrial and commercial households, truck loans, and temporary distressed personal housing loans; The bank-enterprise linkage is required to delay the repayment of principal and interest for half a year.
At the beginning of 2020, the China Banking and Insurance Regulatory Commission, the People's Bank of China and other departments issued a loan deferred repayment policy to help small, medium and micro enterprises cope with the impact of the epidemic; Loan deferment.
This policy will be implemented until the end of 2021. During this period, financial institutions have implemented a cumulative extension of 16 trillion yuan in principal and interest, including 13.1 trillion yuan in loans to small, medium and micro enterprises.
Zou Lan, director of the Monetary Policy Department of the People's Bank of China, introduced that compared with the previous policy, the extension policy has four main characteristics:
First, policy support is stronger.
After the extension of the support tool expires, the People's Bank of China will continue to transform it into a support tool for inclusive small and micro loans in a market-oriented manner this year, providing financial incentives for 1% of the incremental balance of eligible inclusive small and micro loans.
The policy decided to increase the proportion of financial support from 1% to 2% to further mobilize the enthusiasm of financial institutions. At the same time, it is clear that the deferred loan will adhere to the substantive risk judgment, and the loan risk classification will not be lowered due to the epidemic factor alone, and the credit record will not be affected.
The second is to pay attention to the initiative of the bank.
This policy clarifies that commercial banks will independently negotiate with distressed entities in accordance with the principle of marketization, and implement deferred repayment of principal and interest for loans due before the end of this year.
Banks are required to contact enterprises in advance, take the initiative to meet the extension needs, and strive to delay as long as they should.
The third is the expansion of policy benefits.
The targets of this policy support have clearly increased the number of truck drivers and other groups seriously affected by the epidemic. Loans for truck drivers, consumer loans for commercial trucks, and loans for personal housing and consumption are included in the extension.
The fourth is to innovate support methods.
At present, about 60% of the truck loans are issued by auto group finance companies, auto finance companies and financial leasing companies.
"We guide these three types of non-bank financial institutions to innovate and launch freight logistics-themed financial bonds to provide truck owners and related logistics companies with support for deferred loan repayment, continuation, and new investment funds." Zou Lan said.
The number of pilot areas for cross-border financing facilitation has increased to 17
In order to efficiently coordinate the epidemic prevention and control and economic and social development, the foreign exchange bureau has recently launched a series of new measures to help enterprises and reform and opening up.
First, improve the level of trade investment and financing facilitation.
The number of pilot areas for cross-border financing facilitation has increased to 17, covering 80% of the country's high-tech and "specialized, specialized, and new" enterprises. The original 9 regional facilitation quotas have been increased to the equivalent of US$10 million.
The second is to take multiple measures to serve enterprise exchange rate risk management.
From January to April this year, the foreign exchange hedging scale of enterprises increased by 48% year-on-year, and nearly 10,000 "first-time accounts" were added.
The third is to steadily and orderly promote the opening of the financial market to the outside world.
"In the next step, the SAFE will continue to track market demand and provide market players with a more convenient and open foreign exchange market environment," said Wang Chunying, deputy director of the SAFE.
Li Bin, director of the macro-prudential bureau of the People's Bank of China, said that in the next stage, the People's Bank of China will continue to strengthen its financial support for foreign trade and foreign investment, and continue to accelerate the introduction of new forms of foreign trade such as cross-border e-commerce on the basis of market-driven and independent choice by enterprises. policy, steadily expand the pilot program of the integrated capital pool of domestic and foreign currencies, study and optimize the key supervision list system for RMB settlement enterprises; guide financial institutions to optimize business processing procedures, provide enterprises with comprehensive financial services covering RMB trade financing and settlement, and help stabilize The basic disk of foreign trade and foreign investment.
Pan Gongsheng said that he will continue to intensify the implementation of a prudent monetary policy, create a sound monetary and financial environment, and make concerted efforts with relevant departments to give full play to the policy effect of stabilizing the economy and helping enterprises to bail out, and keep the economy operating within a reasonable range.