The second RRR cut this year came as scheduled, reducing the reserve requirement ratio of financial institutions by 0.5 percentage points, which means releasing about 1.2 trillion yuan of long-term funds. The purpose of the central bank's RRR cut this time is to strengthen cross-cycle adjustment, optimize the capital structure of financial institutions, enhance financial service capabilities, and better support the real economy.
Since the second half of this year, the foreign new crown mutation strains have been menacing, the supply chain is tight, the inflation is rising, etc. it has brought great challenges to the global economic recovery, and also brought greater pressure to the domestic epidemic prevention and control and stable economic growth. Small and medium-sized enterprises are the key to stabilizing employment and ensuring people's livelihood, and are the resilience and potential of China's economy. Although the impact of some unfavorable factors on the development of MSMEs has tended to weaken recently, the foundation for recovery is still unstable. Through the reduction of the RRR, we can hedge the downward pressure on the economy and support the development of the real economy, especially small and medium-sized enterprises. It can be said that a moderate reduction in the RRR is timely.
Adjusting the reserve requirement ratio is one of the most important tools in China's monetary policy and is regarded as a "needle in the haystack". This RRR cut can provide financial institutions with low-cost, long-term stable liquidity, with banks as the core of financial institutions, the amount of loans and the ability to lend is expected to be significantly enhanced.
However, whether the purpose of the RRR reduction can be truly achieved depends on whether financial institutions can accurately guide the flow of funds to the "dry land" of the real economy and achieve "precision drip irrigation", the key is to "use good steel on the blade", and make full use of the funds released by the RRR reduction and use them correctly.
The "sense of gain" of the real economy determines the implementation effect of favorable policies. This requires financial institutions to continue to deepen the structural reform of the financial supply side, improve the allocation of internal resources, put the service of the real economy in a more prominent position, and pay more attention to the key areas of the real economy such as manufacturing, small and medium-sized enterprises, and green development.
The Meeting of the Politburo of the CPC Central Committee held on December 6 stressed that next year's economic work should be "steady and steady", pointing out that "prudent monetary policy should be flexible and moderate, and maintain reasonable and sufficient liquidity". Using the "good steel" of comprehensively reducing the RRR on the "blade" is one of the important contents of implementing the spirit of the meeting.
Source: CCTV Finance (ID:cctvyscj)
Reviewer: Chen Aihai
Editor-in-chief: Wang Jichun
This article is edited by Dai Yuanjun
