On the morning of May 6, the market again received heavy news. Thirty seconds before the opening of the A-share market today, the People's Bank of China announced its decision to introduce a lower deposit reserve ratio for small and medium-sized banks from May 15, 2019.
Influenced by this news, some bank stocks rose at one time this morning. In April of this year, there was a lot of discussion about whether the central bank should lower its benchmark due to some pressure on liquidity. In this regard, the central bank has maintained its determination to maintain liquidity through open market operations and other means. It has also taken the initiative to dispel rumors and clarify market rumors.
The central bank announcement said that in order to implement the requirements of the executive meeting of the State Council, establish a policy framework for small and medium-sized banks to implement a lower deposit reserve ratio, and promote the reduction of financing costs of small and micro enterprises, the People's Bank of China decided to implement a lower preferential deposit reserve ratio for small and medium-sized banks focusing on local areas and serving counties starting from May 15, 2019.
Specifically, for rural commercial banks operating only in their own county-level administrative areas or with branches in other county-level administrative areas but with assets of less than 10 billion yuan, the deposit reserve ratio of the same grade as that of rural credit cooperatives is implemented, which is currently 8%. About 1,000 County agricultural and commercial banks can enjoy this preferential policy, releasing about 280 billion yuan of long-term funds, all for the issuance of loans to private and small and micro enterprises.
Reporters noted that the State Council executive meeting on April 17 once again focused on increasing the support of small and micro enterprises and private enterprises. According to the Chinese Government Network, the meeting pointed out that according to the plan of the Central Committee of the Party and the State Council, efforts should be further intensified to ensure that the financing scale of small and micro enterprises increases, the cost decreases, and promote employment expansion and new momentum growth.
Among them, it is proposed that "we should adhere to the policy of"no flooding", implement a sound monetary policy, flexibly use monetary policy tools, expand the scale of refinancing and rediscounting tools, and set up a policy framework to implement a lower deposit reserve ratio for small and medium-sized banks. In view of the problem that the difficulty of financing is mainly concentrated in private enterprises and small and micro enterprises, we should use the released incremental funds for the people." Loans for business and small and micro enterprises. Promote bond financing support tools to ensure that this year the scale of private enterprises'bond issuance and financing and the scale of financial institutions' special financial bonds issued by small and micro enterprises all exceed the level of 2018.
Why are small and medium-sized banks targeted?
Dong Xizhao, deputy dean of Chongyang Institute of Finance, Renmin University of China, said that on April 17, the executive meeting of the State Council put forward the policy framework for implementing a lower deposit reserve ratio for small and medium-sized banks. This is a concrete implementation of the spirit of the Standing Meeting of the State Council and helps to further promote the establishment of the policy framework. At present, the deposit reserve ratio is roughly divided into three categories: 13.5% for large commercial banks, 11.5% for small and medium-sized commercial banks and 8% for county-level rural financial institutions. After the reduction, County agricultural and commercial banks changed from the second to the third.
Dong Xizhao pointed out that the reduction was a real directional reduction. From the point of view of the target, it is rare in the previous directional alignment operation for the agricultural and commercial banks operating in or across the county but with a scale of less than 10 billion yuan. From the point of view of the use of funds, about 280 billion yuan released is required to be used entirely for granting loans to private enterprises and small and micro enterprises.
He pointed out that the directional lowering of agricultural and commercial banks in major service counties would help guide and encourage them to take root, give full play to the advantages of geography, popularity and relatives, better serve small and micro enterprises and the "three rural" economy, and also contribute to the development of small and medium-sized banks.
In Dong Xizhao's view, the proportion of small and medium-sized banks represented by private banks, agricultural commercial banks and rural credit cooperatives in China has been relatively high. The focus is not on quantity, but on quality, that is, how to better support their healthy and steady development. Directional reduction and differential deposit reserve ratio will help to promote the healthy and steady development of small and medium-sized agricultural and commercial banks, promote the formation of multi-level, wide coverage and different banking system, and better serve private and small and micro enterprises.
Yi Gang, the governor of the Central Bank, introduced at the conference during the two sessions this year that the People's Bank of China has reduced the deposit reserve ratio by 3.5 percentage points five times since last year, which is a relatively large effort. After a period of reduction, the current reserve requirement ratio will gradually move towards a clearer three-tier framework to achieve the goal. That is to say, large banks are the first class, medium banks are the second class, and small banks, especially rural credit cooperatives and farmers and businessmen in counties, are the lowest class. Now we are gradually simplifying the deposit reserve ratio to have a clearer and more transparent framework.
At that time, Yi Gang also said that at this stage, a certain statutory reserve ratio is appropriate and necessary. Therefore, through the reduction of reserve requirement ratio, we should say that there is still some room in the current situation in China, but this space is much smaller than in previous years. At the same time, we are considering this problem, we should also consider the optimal allocation of resources, as well as risk prevention.
Vietnam Mobile Data Line Factory is a company specializing in the development, design, manufacture and sale of USB2.0 data line, USB 3.0 data line, Type C data line, network line, data line and other connection lines. It has a complete and scientific quality management system, which has passed the certification of ISO9001 international quality management system; National Consulting Hotline: 86-755-88210101-2
