Xinhua News Agency, Beijing, November 8 Topic: Support the steady growth of the real economy and effectively maintain financial stability – Pan Gongsheng, Governor of the People’s Bank of China and Director of the State Administration of Foreign Exchange, discusses hot economic and financial issues
Xinhua News Agency reporters Wu Yu and Ji Ning
Under the current situation, how to increase countercyclical adjustment of monetary policy? How to effectively deal with financial risks? How to speed up the construction of a modern financial system with Chinese characteristics? At the 2023 Financial Street Forum Annual Meeting held on the 8th, Pan Gongsheng, Governor of the People’s Bank of China and Director of the State Administration of Foreign Exchange, responded to the hot economic and financial issues of market concern.
Maintain the stability of monetary policy
“At present, the total amount of money and credit maintains reasonable growth, the credit structure continues to be optimized, and corporate loan interest rates are at a low level, which provides strong and effective support for economic recovery and development.” Pan Gongsheng said that since this year, monetary policy has increased countercyclical adjustments. The coordinated use of total volume and structure, quantity and price tools has effectively and efficiently supported the development of the real economy.
Since the beginning of this year, the People’s Bank of China has lowered the deposit reserve ratio twice, releasing more than 1 trillion yuan in medium and long-term funds; it has lowered policy interest rates twice, driving market interest rates to continue to decline; it has twice increased relending and rediscount quotas to support agriculture and small businesses. The implementation of six structural monetary policy tools including inclusive small and micro loan support tools will be extended.
Pan Gongsheng introduced that at present, the loan balance of my country’s banking system exceeds 200 trillion yuan, and the balance of social financing scale exceeds 300 trillion yuan. Revitalizing existing loans, improving the efficiency of existing loans, and optimizing the direction of new loans are equally important to supporting economic growth.
“In the next stage, monetary policy will pay more attention to inter-cyclical and counter-cyclical adjustments.” Pan Gongsheng said that in accordance with the requirements of the Central Financial Work Conference, financial resources that are inefficiently occupied will be actively revitalized and the efficiency of fund use will be improved. At the same time, we will make good use of re-loans, rediscounts and inclusive small and micro loan support tools to support agriculture and small businesses, continue to implement carbon emission reduction support tools, special re-loans to support technological progress of enterprises, special re-loans to inclusive pensions, etc., to support technological innovation, The fields of private small and micro enterprises, advanced manufacturing, green development, inclusive elderly care, etc. will develop healthily and do a good job in the “five major articles”.
Prevent and resolve financial risks in key areas
“At present, my country’s financial system is overall stable, financial risks are controllable, financial institutions are overall healthy, and financial markets are operating smoothly.” Pan Gongsheng made this judgment.
In his view, my country’s high-risk financial institutions account for a very small proportion in the financial system, both in terms of number and asset size. After years of reform and risk reduction, the number of high-risk small and medium-sized banks in my country has dropped by half from its peak. A few provinces where high-risk institutions are relatively concentrated are formulating and implementing risk reduction plans for small and medium-sized banks to further reduce the number and risk levels of high-risk institutions.
Regarding real estate financial risks, Pan Gongsheng believes that currently, real estate-related loans account for 23% of bank loan balances, of which about 80% are personal housing loans. my country has always implemented a very prudent personal housing loan policy, and the spillover effects of real estate market adjustments on the financial system are generally controllable.
In recent years, the financial sector has implemented comprehensive policies from both supply and demand ends to improve the industry’s financing and operating cash flow, optimize and adjust real estate financial policies, promulgate the “Sixteen Financial Regulations” for real estate, establish special loans for guaranteed buildings, and adjust down payment ratios and mortgage loans. Macro-prudential financial policies such as interest rates.
“As the economy picks up, coupled with the effects of real estate policies and the market’s self-repair, the real estate market transactions have generally improved since August.” Pan Gongsheng said that the People’s Bank of China will guide financial institutions to maintain the stability of key financing channels such as real estate credit and bonds. , to meet the reasonable financing needs of real estate enterprises of different ownerships equally. Provide medium- and long-term low-cost financial support for the construction of “three major projects” such as affordable housing, improve the housing leasing financial policy system, and promote the construction of a new model of real estate development.
When it comes to local government debt risks, Pan Gongsheng believes that the debt level of our country’s government is at the lower middle level internationally, the central government’s debt burden is relatively light, and most local government debts are mainly concentrated in provinces with larger economies and faster economic growth. , have the ability to resolve debts on their own.
He introduced that since this year, the financial sector has taken a number of measures together with relevant departments to actively support local governments to steadily resolve debt risks. Guide financial institutions to negotiate on an equal footing with financing platforms in accordance with the principles of marketization and rule of law, implement classified policies to resolve existing debt risks, strictly control incremental debts, and establish normalized financing platform finance through extensions, new loans, repayments, replacements, etc. Debt monitoring mechanism.
“When necessary, the People’s Bank of China will provide emergency liquidity loan support to areas with relatively heavy debt burdens.” Pan Gongsheng said that the financial sector also supports local governments to gradually divest the government financing functions of financing platforms and transform through mergers, acquisitions, reorganizations, asset injections, etc. Become a market-oriented enterprise that does not rely on government credit and is financially independent and sustainable.
Accelerate the construction of a modern financial system with Chinese characteristics
In terms of deepening the structural reform of the financial supply side, Pan Gongsheng proposed to accelerate the construction of a modern financial system with Chinese characteristics. Accelerate the construction of a modern central bank system and improve the “dual-pillar” regulatory framework of monetary policy and macro-prudential policy. Deepen the market-oriented reform of interest rates and exchange rates, and improve the market-oriented interest rate formation, regulation and transmission mechanisms.
Pan Gongsheng said that the financial institution system will be promoted to be more reasonable in scale, structure, and regional layout. Strengthen the construction of the bond market system, improve the modern payment system with wide coverage, efficiency and security, and improve the credit reporting system covering the whole society.
In addition, in terms of promoting high-level two-way opening up of the financial industry, Pan Gongsheng said that it is necessary to steadily and steadily promote the internationalization of the RMB, deepen the reform and opening up in the foreign exchange field, steadily expand the institutional opening of the financial market, and promote the facilitation of trade, investment and financing. We will do a good job in the work of the China-U.S. and China-EU financial working groups, pragmatically promote international financial cooperation, and actively participate in international economic and financial governance.
[Editor in charge: Xue Tao]
Tags: Support steady growth real economy effectively maintain financial stability Pan Gongsheng Governor Peoples Bank China Director State Administration Foreign Exchange talks hot economic financial issues Xinhuanet-