"Directional Drop" Provides Precise Support For Weak Links

< p > this "targeted reduction" is mainly aimed at small and micro enterprises and "three rural", and the location of these city commercial banks and regional banks lies in this.

By releasing their liquidity, they provide precise support for the "three rural" and small and micro enterprises.

Experts believe that the trend of new release of funds into excess capacity and financing platform and other strong sectors should not be underestimated. We need to refine policies and strengthen supervision so as to ensure that the funds released from the quasi reduction are not outflow.

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< p > Central Bank this year the second "directional drop" boots "landing".

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< p > June 9th evening, the central bank issued a notice that, from June 16, 2014 onwards, the commercial banks with a certain proportion of the "three rural" and small and micro enterprises loans (which do not include the institutions that cut the reserve ratio in April 25, 2014) lowered the RMB deposit reserve ratio by 0.5 percentage points.

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< p > the central bank's "targeted reduction" is the concrete implementation of the spirit of the executive meeting of the State Council in May 30th.

The meeting proposed to increase the intensity of "directional reduction", but the conditions of "shortlist" and the rate of reduction in the reserve ratio were not determined.

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< p > the central bank has set a clear "shortlist" standard: the "three rural" and small and micro enterprises loans reached a certain proportion, that is, the new agricultural loans accounted for more than 50% of the total new loans last year, and at the end of last year, the proportion of agriculture related loans accounted for more than 30% of the total loans. Or, last year, new small and micro loans accounted for more than 50% of the total new loans, and at the end of last year, the balance of small and micro loans accounted for more than 30% of the total loan balance.

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< p > the central bank said that according to this standard, the "directional reduction" covers about 2/3 of the city commercial banks, 80% of the non County agricultural businesses and 90% of the non County agricultural cooperatives.

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< p > before, many analysts speculated that the second round of "quasi directional reduction" coverage might include some joint-stock banks and "three rural" businesses, which are more prominent, but the central bank's standard excludes them.

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"P", director of the Research Institute of international finance, Bank of China (601988, Guba), Wen bin, told reporters that the central bank has a high threshold and is very precise.

The reduction is mainly aimed at small and micro enterprises and "three rural", and the location of these city commercial banks and regional banks lies in this.

By releasing their liquidity, they provide precise support for the "three rural" and small and micro enterprises.

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< p > earlier, regulators have repeatedly stressed that the duty of city commercial banks is to serve small and micro enterprises.

All along, the city commercial banks have unique geographical and resources advantages in serving small and micro enterprises. Especially in the trend of interest rate liberalization and financial disintermediation, the development of small and micro finance in city commercial banks has become the inevitable trend of strategic pformation.

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< p > a lot of analysts also said that this round of "quasi directional reduction" involves most of the city commercial banks and rural credit cooperatives, which is stronger than last time and exceeded market expectations. The purpose is very clear is to strengthen the financial services entity economy.

"The amount of funds released by the" quasi directional drop "is about 100 billion yuan, up to 150 billion yuan.

According to Wen Bin, according to the monetary multiplier of more than 4 times, in theory, if all loans are used, the scale of loans of 400 billion yuan ~5000 billion yuan can be increased.

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Before P, the central bank lowered the county's rural commercial banks' RMB a href= "http://www.91se91.com/news/index_c.asp" > the deposit reserve ratio < /a > 2 percentage points, and lowered the RMB deposit reserve ratio of the rural cooperative banks at county level by 0.5 percentage points.

The two "directional reduction" has released positive signals, which is conducive to guiding the optimization of credit structure of financial institutions and achieving the dual goal of steady growth and structural adjustment.

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At the end of 5, Li Keqiang, premier of the State Council, pointed out that "financial support for the development of the real economy is one of the most prominent contradictions affecting the operation of the macro-economy" at the end of P.

Appropriate use of policy toolbox, timely and appropriate adjustment of fine-tuning, while revitalizing the stock of funds, optimize the financial structure, maintain reasonable growth in monetary and credit, promote financial reform, and create a good financial environment.

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< p > the central bank also said that the "directional reduction" is to encourage commercial banks and other financial institutions to allocate more funds to the areas that need support in the real economy.

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< p > < a href= > http://www.91se91.com/news/index_c.asp > > Zhao Xijun < /a >, vice president of the school of Finance and finance of Renmin University of China, said that the "directional reduction" is a structural policy adjustment. The purpose is to guide the weak links in the industrial economy so as to make the weak links more dynamic and make the economy balanced and reasonable development.

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< p > Wen Bin said that this is also to keep the currency at a reasonable level, and the structural measures are more precise, operational and feasible.

More significant is the release of funds targeted to support the "three rural", small and micro enterprises policy signals.

At the same time, the central bank said that liquidity is generally moderate and abundant, and the basic orientation of monetary policy has not changed.

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< p > however, how can we get the "big gift package", "three rural" and small and micro enterprises that are brought by the "directional reduction"? < /p >

< p > experts believe that the trend of new release < a href= "http://www.91se91.com/news/index_c.asp" > capital inflow /a > overcapacity and financing platform can not be underestimated. We need to refine policies and strengthen supervision so as to ensure that the funds released are not released.

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< p > industry experts have suggested that financial institutions should be able to invest funds in these areas by strengthening assessment and monitoring. Supervision can calculate whether the increase of small and micro loans and the "three rural" loans is equivalent to the credit space of reducing the cost.

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< p > the central bank also stressed that it would strengthen inspection and supervision of the implementation of financial institutions, assess the effectiveness of policies and maintain positive incentives.

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