Yi Gang: More than 90% of newly issued loans have used LPR as the pricing benchmark

In the 10th issue of 2020, Qiushi published an article by the People’s Bank of China Governor Yi Gang “Using financial support policies to promote epidemic prevention and control and economic and social development.” The following is the full text: Finance is the blood of the economy and is indispensable to social life.Basic services that are missing.The emergence of the new coronary pneumonia epidemic has superimposed the economy in the downward cycle and has a conductive impact on the current economic and financial operations.The Party Central Committee with Comrade Xi Jinping at the core has made a series of decisions and arrangements for the overall promotion of epidemic prevention and control and economic and social development.In accordance with the important instructions and instructions of General Secretary Xi Jinping and the Central Leading Group’s response to the New Coronary Pneumonia Outbreak, the Joint Defense and Joint Control Mechanism of the State Council, and the deployment requirements of the Financial Stability Development Committee of the State Council, the People ‘s Bank of China insists on focusing on the people and serving the real economy.Seriously convene the duties of the Office of the National Finance and Financial Stability Development Committee, lead the financial sector to resolutely establish the Central Congress, and the State Council plans to make decisions to provide strong support for winning the epidemic prevention and control war and promoting economic and social development.First, for the prevention and control of the epidemic and the stable operation of the financial market in the monetary and financial environment, the new crown pneumonia epidemic is the rate of spread that has occurred gradually since the founding of New China. It has the widest scope of infection and the largest prevention and control.The incident also had an impact on China’s economy and finance, and a major exam.Faced with an extremely severe and complex situation, the People ‘s Bank of China, in accordance with the requirements of the Party Central Committee on “stable monetary policy needs to be more flexible and flexible”, has taken a variety of measures to strengthen the counter-cyclical adjustment of monetary policy and maintain reasonable and sufficient liquidity in the financial system.Stabilizing social expectations, unwaveringly supporting the opening of the financial market as scheduled on February 3, 2020, unleashed the belief and strong signal of a firm victory in the epidemic prevention and control.First, overall, liquidity exceeded expectations.On January 6, 2020, the deposit reserve ratio of financial institutions was lowered by 0.On the basis of the release of more than 800 billion U.S. dollars in long-term funds, the financial market will be implemented on February 3 and February 4.7 trillion US dollars reverse repurchase operation, two targeted reductions in March and April released long-term funds of 550 billion US dollars and 400 billion US dollars respectively, and also used a variety of monetary policy tools such as standing borrowing facilities, refinancing, and discountingThe liquidity of the financial market is reasonably sufficient.Secondly, in terms of prices, orderly guidance of interest rates in financial markets such as currency and credit will go down.Since the beginning of this year, open market reverse repurchase operations and medium-term lending facility winning bid rates have each dropped by 30 basis points, and the 1-year loan market quoted rate (LPR) has also fallen by 30 basis points.At the end of April, the 10-year Treasury bond rate was 2.5%, down by 0 from the previous year’s high.9 digits; 1-year Treasury yield is only 1.About 1% is at a historical low.At present, a series of counter-cyclical monetary policy adjustments adopted in the previous period have achieved positive results.First, the scale of monetary credit and social financing maintained reasonable and rapid growth, and corporate financing costs fell.In the first four months of 2020, RMB loans increased by 8.8 trillion yuan, an increase of 1 in ten years.97 trillion yuan; the increment of social financing scale is 14.19 trillion yuan, an increase of 3 over ten years.91 trillion; At the end of April, the broad money M2 increased by 11.1%, 2 higher than the same period last year.Six singles, under the controversial impact of the Spring Festival factors combined with the epidemic on economic growth, reflected the strengthening of counter-cyclical adjustment.From February to April 2020, under the influence of budgetary special re-loan policies, fiscal discounts, and the decline in the quoted interest rate of the commercial bank loan market, corporate loan interest rates have dropped significantly.In particular, in the first quarter, the average interest rate of newly issued inclusive small and micro loans of five large banks was 4.4%, a decrease of 0 from the full-year forecast for 2019.3 averages.Second, the opening of the financial market as scheduled, the securities, foreign exchange market, etc. have shortened the test.The stock market stabilized and rebounded after falling on the opening day of February 3, which greatly enhanced market confidence.Since late February, the growth of major global stock indexes and the spread of panic sentiment have gradually declined to some extent in the A-share market, but the overall operation is stable and the changes are significantly smaller than other major economies in the world.The exchange rate of RMB against the US dollar has doubled. From the beginning of the year to May 10, the cumulative depreciation is less than 2%, and market expectations are stable.In addition, currencies, bonds, bills, gold and other financial markets have also opened as scheduled, and the overall operation is stable.Under severe and complex indicators, we withstood market pressure and insisted on opening the financial market as scheduled, which embodies the Party Central Committee’s determination to maintain market rules, and also shows that China’s financial market is gradually maturing, fully affirmed by market participation and the International Monetary FundPositive evaluation of organizations (IMF) and other institutions.Second, provide emergency and efficient special financial services for epidemic prevention and control. Focusing on the overall situation of epidemic prevention and control, the People’s Bank of China promptly opened a “green channel” for various financial services to ensure uninterrupted basic financial services and fully support the production of medical materials and necessities.On February 1, the Ministry of Finance, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange issued the “Notice on Further Strengthening Financial Support to Prevent and Control New Coronavirus Infection of Pneumonia”. It introduced 5 aspects, 30 financial support measures, and strive to do a good job.Provide preferential interest rate credit support to epidemic prevention and control production enterprises, and provide differentiated preferential financial policies for regions, industries, enterprises and residents affected by the epidemic.-Provide preferential interest rate credit support for important medical and domestic material production enterprises to meet the “guaranteed supply” enterprise capital needs.Fiscal, financial, and industrial policies work together. The People ‘s Bank of China provides $ 300 billion in special budget refinancing funds. In conjunction with the National Development and Reform Commission and the Ministry of Industry and Information Technology, it implements inventory management of key guarantee companies.The re-loan funds are used by the enterprises most needed to fight the epidemic.At the same time, various commercial banks proactively docked with the companies in the list to speed up the progress of credit lending and completed the “loan should be fully loaned, loan should be fast loan”, the loan interest rate is the latest 1-year loan market quoted rate (LPR) minus 100 basis points.As of May 9th, 9 national banks and 10 provincial, municipal, and local financial institutions have issued concessional loans totaling 272.7 billion U.S. dollars to 7,151 key enterprises, reducing the average interest rate by 2.After 5% and 50% discount from the finance, the actual financing cost of the company is only about 1.25%, which is lower than the average interest rate of corporate loans of about 5%, effectively meets the “guaranteed supply” needs of corporate funds.-Carry out a “green channel” for fund transfer for epidemic prevention and control to ensure that the fund transfer is not incompatible.In order to ensure the emergency funds for epidemic prevention and control, and large amounts of funds for donated materials from all walks of life at home and abroad, the People’s Bank of China opened a “green channel” during holidays.From January 24 to May 10, the People’s Bank of China scale quota payment system gradually replaced 8153 special payments of more than 10 million yuan in Hubei province’s epidemic prevention work, with an amount of 549.4 billion yuan; gradually opened through the “green channel” to fight against the epidemicThere are 14,632 bank accounts of related units.The epidemic prevention and control response plan was launched in a timely manner to ensure the continued stability of mobile payment services such as micro-payment, WeChat and Alipay of commercial banks.Guide clearing institutions, commercial banks, and non-bank payment institutions to reduce or exempt handling fees, and 15 national commercial banks will be exempt from handling fees for donating money to fight epidemic outbreaks.-Carry out an emergency budget for treasury funds for epidemic prevention and control in a timely manner to ensure the need for prevention and control funds.It is the legal responsibility of the Treasury of the People’s Bank of China to disburse treasury funds. During the extraordinary period of combating the epidemic, the Treasury system of the People’s Bank of China has further improved the efficiency of government funds allocation and “race” the epidemic.As of May 10, the State Treasury Department expanded to the general financial department to handle 141042 funds for epidemic prevention and control funds, with an amount of US $ 114.8 billion; of these, 2,200,447.The US $ 70 billion of central and provincial financial special subsidies to support local governments to fight the epidemic has effectively guaranteed the funding needs of local health committees, designated hospitals, community health service centers, and hospital construction units.-Establish a “green channel” in foreign exchange business to ensure the prevention and control of epidemic materials trade.After the epidemic occurred, the trade in materials such as medical care, isolation and epidemic prevention, disinfection and sterilization increased, and there was an urgent need to improve the convenience of foreign exchange services.In this regard, the People’s Bank of China instructed the State Administration of Foreign Exchange to simplify the process of purchasing and paying foreign exchange for the import of epidemic prevention and control materials, organized banks to open up a “green channel” for related businesses, and simplified the procedures for accounting and settlement of foreign donations, allowing banks to directly handle the settlement and settlement of funds.For the settlement and payment of capital project income related to the prevention and control of the epidemic by the enterprise, the bank will conduct an ex-post inspection on the authenticity of the use of funds. The enterprise does not need to submit documentary materials one by one to the bank in advance.For enterprises that need to borrow more foreign debt due to epidemic prevention and control, the restriction requirements have been lifted, and the financing channels for enterprises have been broadened.-Do a good job in credit reporting services during the epidemic, and effectively protect the public’s credit reporting rights.For those hospitalized or quarantined due to new coronary pneumonia, the epidemic prevention and control needs to isolate the observers, the staff participating in the epidemic prevention and control, and the “four types of people” who temporarily lose their income sources due to the epidemic, and require financial institutions to be appropriately inclined and flexible in credit policyAdjust the personal mortgage repayment schedule for housing mortgages and credit cards, and reasonably postpone the repayment period; if the personal loans and credit card overdrafts are overdue during the epidemic prevention and control, do not violate the default and do not enter the list of defaulting customers;If the payment is overdue, credit and loss of credit records shall not be separated.-Support enterprises to expand the scale of bond financing and reduce the cost of bond financing.In order to prevent corporate bond financing from being affected by the epidemic, the People’s Bank of China established a “green channel” for bond issuance, extended the validity period of bond quotas, adjusted the time limit for information disclosure reasonably, adjusted policies in a timely manner, and supported online processing of business.Raised funds are mainly used for epidemic prevention and control and corporate credit bonds issued by enterprises in areas with severe epidemics, reducing service charge standards; on this basis, the issuers of Hubei Province issuer corporate members will be halved in the first three months of 2020.By the end of April 2020, it had accumulatively supported the issuance of 388 special bonds for epidemic prevention and control, worth 399.3 billion yuan.Third, actively respond to the impact of the epidemic, and fully implement the “six guarantees” task. The People’s Bank of China resolutely joined the Party Central Committee. The State Council made a decision to deploy and comprehensively support financial support to promote epidemic prevention and control and economic and social development in accordance with epidemic prevention and control and economic and financial changes.Work, especially to increase the “six stability” work, merge the “six guarantees” task, take the “six guarantees” as the focus of the “six stability” work, focus on financial support to stabilize enterprises to secure employment.-In accordance with the principles of marketization and rule of law, increase financial support measures for the resumption of production of small and medium-sized enterprises.There are currently about 20 million small and micro enterprise legal persons, accounting for more than 90% of market legal person participants.In addition, there are more than 80 million individual industrial and commercial households.Solving the financing problems faced by small and medium-sized enterprises in resuming production and production is only an important economic and financial issue, and it is also an important employment and livelihood issue.On February 25, after studying at the executive meeting of the State Council, the People ‘s Bank of China issued a financial policy change to support the resumption of production of small, medium and micro enterprises, and strived to achieve the overall “incremental, price reduction, quality improvement, and expansion” of financing for small and micro enterprises in 2020.aims.One is to provide refinancing and discounting support1.8 trillion yuan.In addition to the establishment of a $ 300 billion special project re-loan to support epidemic prevention and protection, an additional $ 500 billion re-loan re-discount line was supported to support local corporate banks to issue preferential loan loans to small and medium-sized enterprises to resume work and production;Loan rediscount lines, with small and medium-sized micro-enterprise loans with a wide range of preferential interest rates, are expected to cover more than 2 million businesses.The People’s Bank of China will support agriculture and refinance loans for small loans from 2.75% down to 2.5%, the interest rate of loans provided by commercial banks using funds of the People’s Bank of China does not exceed 4.55%.As of May 7, financial institutions have issued preferential interest rate loans totaling 705.2 billion US dollars.The second is to support policy banks to increase the special credit lines of 350 billion private small and micro enterprises, all of which will be put into place before the end of June.Increase the maximum credit plan of policy banks by 6,000 trillion.The three policy banks follow the principle of capital preservation and meager profit, and the actual loan interest rate should be significantly reduced.The third is to guide financial institutions to increase US $ 300 billion in low-interest-rate loans and provide targeted support to individual business households affected by the epidemic.Encourage the National Bank of China to increase the credit growth rate for small and micro enterprises, and strive to increase the growth rate of the balance of inclusive small and micro enterprises loans in the first half of the year by not less than 30%, and the interest rate has dropped significantly from 2019.Fourth, increase bond financing support.Establish a “green channel” for bond issuance in special periods. From January to April, corporate credit bonds were issued4.6 trillion yuan, an increase of 46% in ten years; private enterprises issued about 270 billion yuan of bonds, and the amount of issuance reached a new high in recent years.Guide the highest net financing of corporate credit bonds by 1 trillion yuan more than the previous year.Support financial institutions to issue 300 billion small and micro financial bonds throughout the year.Fifth, promote the integration of core enterprises and large state-owned banks with accounts receivable financing platforms.In the first quarter of 2020, small and medium-sized enterprises raised 156.8 billion yuan through the accounts receivable financing platform, and strived to promote the financing of 800 billion yuan by small and medium-sized enterprises through accounts receivable.In addition, it also cooperates with the Banking and Insurance Regulatory Commission and other departments to encourage financial institutions to provide loan principals and quotations to small and medium-sized enterprises (including individual industrial and commercial households) that meet the conditions and have temporary liquidity difficulties according to the application of the market and the principles of marketization and rule of lawTemporary deferred repayment arrangements.For principal, if it is due since January 25, 2020, the repayment date can be extended up to June 30, 2020; for the index, if the payment is required from January 25, 2020 to June 30, 2020, the longest can also beCalculated and collected until June 30, 2020, and penalty interest is exempted.As of April 15th, banking institutions have implemented deferred repayments on principal and interest of more than $ 1 trillion in loans.Among them, the principal repayment of deferred loans is 60.40,000 households, 9637.1 trillion US dollars, 51 interest repayment of deferred loans.90,000 households, 481.500 million yuan.-Actively and steadily resolve urgent issues such as debt repayment, capital turnover and expanded financing faced by enterprises in resuming production.The People’s Bank of China, in conjunction with relevant departments, innovated and improved financial support methods to promote financial institutions to provide separate credit lines for key epidemic prevention areas, and provide special credit lines for enterprises affected by the epidemic situation; enterprises were urged to increase the extension of corporate loans and renew loansStrengthen and reduce simplified procedures, appropriately reduce and exempt loan interest, moderately expand the scope of pure credit debt allocation, and prevent the breakage of corporate capital chains, etc .; for industries affected by the epidemic and confrontation, and companies that have development prospects but are temporarily affected by the epidemic, requireCommercial banks shall not blindly draw loans, break loans, and suppress loans.-Increase support for key industries and weak links.In the long run, the key to responding to the economic and financial impact of the epidemic is to adhere to the promotion of economic growth in accordance with the requirements of the new development concept, and continue to promote transformation and upgrading and structural adjustment.In this way, the People’s Bank of China vigorously optimizes the allocation of financial resources, and organizes banking institutions to increase the financial layout of regions and key enterprises that have been severely affected by the epidemic by adjusting regional financing policies and internal capital transfer pricing, especially for tourism, entertainment, accommodation and catering, Transportation and other industries seriously affected by the epidemic, as well as key areas and weak links such as poverty alleviation, people’s livelihood and employment, introduce various preferential policies, smooth financing channels, reduce financing costs, and effectively improve service quality and efficiency.At the same time, we organized banking institutions to increase credit support for advanced manufacturing, emerging manufacturing, and emerging industries, increase medium- and long-term loans in manufacturing, and guide more high-quality resources into key areas of economic growth and development.Fourth, to continue to deepen financial reforms and expand opening up to make good use of financial support policies, we must not only look at the present, but also benefit the long-term.The People’s Bank of China continues to promote the lateral structural reform of finance, while continuously improving the ability to prevent and resolve financial risks, the pace of financial reform is getting faster and faster, and the door of financial opening is opening wider.-Deepen market-oriented reform of interest rates.Interest rate is the most important financial factor price.The People’s Bank of China liberalized the adjustment of interest rates on loans and deposits in July 2013 and October 2015, respectively, and a major breakthrough was made in the market-oriented reform of interest rates.Since the introduction of the quoted interest rate (LPR) in the loan market quoted by commercial banks in 2019, the marketization of interest rates has continued to increase, and market interest rates have continued to fall.At present, more than 90% of newly issued loans have used LPR as the pricing benchmark.After starting the conversion of floating deposit interest rate loan pricing benchmarks on March 1, 2020, we will further unblock monetary policy intervention mechanisms, break through the implicit lower limit of loan interest rates, and guide a gradual decline to replace the interest burden of enterprises and residents.In March 2020, the average interest rate of corporate loans was 4.82%, a decrease of 0 from July 2019 before the LPR reform.5 averages.-Promote financial reform and opening up in key areas in key regions.On February 14, 2020, the People ‘s Bank of China, in conjunction with the Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the Foreign Exchange Bureau, and the Shanghai Municipal Government issued the “Opinions on Further Accelerating the Construction of the Shanghai International Financial Center and Financial Support for the Integrated Development of the Yangtze River Delta”, which proposed 30Strip specific measures, benchmarking the highest international standards, including expansion development requirements, promote Shanghai to be the vanguard of financial reform and opening up, and prepare for the exploration of the financial consolidation model before the full merger of gross national income plus the inventory management system.On May 7, clarify and simplify the internal securities and futures investment funds management requirements for foreign institutional investors, cancel the requirements for the management of internal securities investment quotas for qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII), and cancel the number of custodiansRestrictions, etc., further facilitate the participation of foreign investors in the financial markets.-Continue to promote the prevention and resolution of major financial risks.Preventing and resolving major risks is one of the three major battles determined by the 19th National Congress of the Communist Party of China, and is a major change in the decisive victory of building a well-off society in an all-round way.In 2020, the People ‘s Bank of China will continue to earnestly promote the work of the State Council ‘s Financial Stability and Development Committee, and gradually implement it to advance financial risk disposal in key areas in a stable and orderly manner; replacement, and continue to accelerate the construction of a system for preventing and mitigating financial risks.On March 5, the National Development and Reform Commission of the People ‘s Bank of China, the Ministry of Finance, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the Foreign Exchange Bureau issued the “Working Plan for the Overall Supervision of Financial Infrastructure” to unify the standards for financial infrastructure supervision, improve access management, and promote the formation ofReasonable layout, effective governance, advanced and reliable, and flexible financial infrastructure system.Support pilot commercial banks and some insurance institutions to participate in the China Financial Futures Exchange’s Treasury futures trading, further meet the risk management needs of banking and insurance institutions, and enrich the market investor structure.-Further strengthen international financial cooperation.In order to create a favorable international environment, since the outbreak, the People’s Bank of China took the initiative to speak on international occasions, actively communicate with the International Monetary Fund (IMF), and respond to international concerns in a timely manner.On March 2, coordinated the “Belt and Road” Inter-Bank Normalized Cooperation Mechanism (BRBR) to release “Support for China and Other Countries to Solve the New Coronary Pneumonia Outbreak”, fully affirming the huge efforts and effective measures to fight the outbreak.On March 4 and April 16, the International Monetary Fund International Monetary and Financial Committee telephone video conference, March 8 and May 5 International Bank of Settlements (BIS) telephone video conference and March 23 TwentyAt important moments such as the group’s finance ministers and successive governor meetings, the People’s Bank of China introduced financial support to major countries and economies around the world to support epidemic prevention and control and the orderly advancement of resumption of production and production, as well as the work of a stable China and global supply chain andThe results have strengthened the confidence of the international community in the economic development of developing countries.At present, major strategic achievements have been achieved in the epidemic prevention, control and blocking war, and the economic and social order has been restored quickly.However, the spread of overseas epidemics has had a significant adverse impact on the economy and finance of the transitional world, which has brought new challenges to long-term economic development.The current economic scale is large, the economy is sufficient, and the maneuver space is connected. There are many favorable conditions for maintaining the overall development of economic and financial stability.The People’s Bank of China will, in accordance with the Party Central Committee’s deployment, give full play to the leading role of financial policies such as refinancing and re-discounting, loan repayment of principal and interest, and dredge intervention mechanisms to provide strong support for stabilizing employment and real economy development; strengthening monetary policyCounter-cyclical adjustment, pay more attention to flexibility and appropriateness, maintain the stability of the financial market, and promote the victory of epidemic prevention and control and economic and social development.Editor Yue Caizhou