Central Bank: March 16Th Directional Drop Quasi Release Of Long-Term Funds 550 Billion Yuan

In order to support the development of the real economy and reduce the actual cost of social financing, the people's Bank of China decided to implement the inclusive financial system in March 16, 2020, and the bank will achieve a targeted reduction of 0.5 to 1 percentage points. In addition, the eligible joint stock commercial banks will be further directed to 1 percentage points to support the issuance of loans in the inclusive financial sector. The above directional reduction has released a total of 550 billion yuan of long-term funds.

The reduction is the second time this year when the central bank has implemented its approval. How will the real economy support the real economy? What will be the impact on the market?

Insiders said that the direction of the drop in the expected rate, the impact of the epidemic and sudden changes in the international market, the downward pressure on the economy is relatively large. Small and medium-sized enterprises and private enterprises are more difficult.   The precision reduction can release the long term liquidity. It will play a positive role in maintaining a reasonable and full market liquidity. At the same time, the signal was released. It will also play a positive role in the operation of the market, the expected improvement in the future, and the stable operation of the capital market.

Lian Ping, chairman of China's chief economist Forum Structurally speaking, we support the inclusive finance through directional reduction. Mainly support small and micro enterprises and private enterprises under the current pressure situation, can make some enterprises and private economy can be very good support. 。 In addition, through such a directional action, a clear policy signal is given to the whole market. Support the economy, safeguard the economy and maintain a good state of operation.

In addition, the central bank has stepped up the reduction of shareholding banks. According to this expert, banks that have contributed significantly to inclusive financial services or small and medium-sized banks affected by the epidemic will be targeted to reduce their RRR, and increase the amount of re loans and rediscount. It can reduce the cost of corporate debt, release the long-term low cost liquidity, and enhance the execution and landing effect of the policy.

Dong Ximiao, special researcher of national finance and development laboratory The joint-stock commercial banks have a relatively high degree of marketization, flexible systems and mechanisms, and relatively strong innovation in products and services. It will help the joint-stock banks to give full play to their advantages and increase their loans in the inclusive financial sector, so as to better serve the real economy.

Insiders believe that At present, under the pressure of external pressure, the future monetary policy will continue to move towards a more flexible direction. It will continue to persist in the coming period and will play a more important role in the operation of the whole economy.