Recently, the Monetary Policy Department of the Central Bank issued a document stating that in the next stage, efforts should be made to create a good monetary and financial environment, accurately grasp the law and new characteristics of money and credit supply and demand, comprehensively use a variety of monetary policy tools, maintain reasonable and abundant liquidity, and maintain a reasonable growth in the total amount of money and credit and the scale of social financing. At the same time, it emphasizes enhancing the stability and sustainability of credit growth, revitalizing financial resources that are inefficiently occupied, and improving the efficiency of capital use.
First of all, maintaining reasonable and abundant liquidity is one of the important tasks of the current monetary policy. Against the backdrop of complex and volatile economic situations at home and abroad, the central bank needs to ensure a stable supply of funds in the market and avoid financial market volatility due to tight liquidity. By appropriately increasing the money supply, we will support the recovery and development of the real economy, while maintaining reasonable and sufficient liquidity in the financial market and promoting the stability of asset prices such as stocks and bonds.
Second, maintaining a reasonable growth in the total amount of money and credit and the scale of social financing is an important guarantee for achieving economic growth. In the context of the increasing downward pressure on the global economy, the mainland economy is also facing certain downward pressure. Therefore, the central bank needs to promote the reasonable growth of the total amount of money and credit and the scale of social financing through the comprehensive use of monetary policy tools, and support the stable development of the real economy.
At the same time, the central bank proposed to enhance the stability and sustainability of credit growth. This means that there needs to be a greater focus on quality rather than quantity in the credit delivery process, and avoid over-reliance on short-term credit to stimulate economic growth. In addition, the central bank also stressed the need to revitalize the financial resources that are occupied by inefficiency and improve the efficiency of capital use. This requires financial institutions to strengthen risk management, optimize asset structure, improve the efficiency of capital use, and promote the transformation and upgrading of the real economy.
From a longer-term cross-cyclical perspective, we should have a more reasonable understanding and understanding of "keeping the growth rate of money supply and social financing basically in line with the growth rate of the nominal economy". This means that when formulating monetary policy, it is necessary to comprehensively consider various factors such as economic growth, inflation, and employment to achieve sustainable economic development.
Finally, more attention should be paid to the sustainable utility of existing loans and improve the efficiency of the use of existing loans. This is a summary and reflection on the previous use of financial resources. Financial institutions need to strengthen the control and management of existing loans to avoid non-performing loans and ineffective investment. At the same time, we should actively promote financial innovation, develop more financial products and services that meet the needs of current economic development, and improve the efficiency of the allocation and use of financial resources.
To sum up, it is very necessary for the central bank to maintain reasonable and abundant liquidity, maintain a reasonable increase in the total amount of money and credit, and maintain a reasonable increase in the scale of social financing. This will help stabilize economic growth, promote the smooth operation of financial markets, optimize the allocation of financial resources and improve the efficiency of capital use. At the same time, the central bank also stressed the importance of measures to enhance the stability and sustainability of credit growth and revitalize financial resources that have been tied up inefficiently. The implementation of these measures will help promote the transformation, upgrading and sustainable development of the real economy.