1. Deposit reserve policy.
The deposit reserve policy means that the central bank sets the deposit reserve ratio for the deposits of commercial banks and other monetary institutions, and forces commercial banks and other monetary deposit institutions to pay the deposit reserve in accordance with the prescribed ratio; The central bank adjusts the statutory deposit reserve to increase or decrease the excess reserve of commercial banks, thus affecting the money supply.
2. rediscount policy.
Rediscount policy is a means for the central bank to influence the credit scale and market interest rate of commercial banks by raising or lowering the rediscount rate, so as to achieve the goal of monetary policy.
3. Open market business.
The so-called "open market operation" (also known as "open market operation") refers to a monetary policy means by which the central bank publicly buys and sells securities in the financial market in order to change the reserves of deposit-taking monetary institutions such as commercial banks, thus affecting the money supply and interest rates and achieving monetary policy objectives.
Deposit reserve is a fund prepared to limit the credit expansion of financial institutions, ensure customers to withdraw deposits and meet the needs of fund settlement. The statutory deposit reserve ratio is the ratio of the deposit reserve paid by financial institutions to the central bank in accordance with regulations to the total deposits. The impact of changes in the deposit reserve ratio on commercial banks is as follows:
When the central bank raises the statutory reserve ratio, the ability of commercial banks to provide loans and create credit will decline. Because the reserve ratio increases, the money multiplier becomes smaller, which reduces the ability of the whole commercial banking system to create credit and expand the scale of credit. As a result, the monetary policy in society is tight, the money supply is reduced, interest rates are raised, and investment and social expenditure are correspondingly reduced. or vice versa, Dallas to the auditorium
From 65438 to 0984, the People's Bank of China began to establish the deposit reserve system. In the past ten years, it has undergone four adjustments, all of which played a positive role at that time-restraining the overheating of the economy, the excessive rise of prices and the excessive money supply. At present, the direction of the central bank's reform of the deposit reserve system is to gradually restore the function of the deposit reserve as a tool to adjust the total amount of money, and change its original main function from adjusting the total amount of money to concentrating funds and adjusting the credit structure.
Open market business refers to a market where all kinds of securities are freely traded and negotiated, and the trading volume and price must be publicly displayed. Open market business refers to the activities of the central bank to adjust the credit scale, money supply and interest rate by buying and selling securities in the open market, so as to realize its financial regulation. It is the most important tool of monetary policy.
The operation method of this business: when the central bank judges that there are too many funds in the society, it will sell bonds and recover some funds accordingly; On the contrary, the central bank's purchase of bonds directly increases the amount of funds available to financial institutions. China's open market business began with foreign exchange operations, and 1996 began the open market business of buying and selling government bonds.
Discounting refers to the bill transfer behavior in which the holder pays a certain interest to the bank in order to get cash before the bill expires. Re-discounting means that commercial banks or other financial institutions transfer the unexpired bills obtained by discounting to the central bank.
Discount is a way for commercial banks to provide funds to enterprises, and rediscount is a way for central banks to provide funds to commercial banks, both of which are based on the transfer of valid bills-bank acceptance bills.
Rediscount is one of the three monetary policy tools of the central bank (open market business, rediscount and deposit reserve). It not only affects the financing cost of commercial banks, limits their credit status and controls the total money supply, but also can selectively finance different kinds of bills according to the requirements of national industrial policies and promote structural adjustment. Generally speaking, the rediscount rate of the central bank has the following characteristics:
Short-term interest rate Because the loans provided by the central bank are mainly short-term, the time limit for applying for rediscounting qualified bills is generally within 3 months, and the longest is within 1 year.
Official interest rate. It is stipulated according to the national credit policy and reflects the policy intention of the central bank to some extent.
Standard or lowest interest rate. For example, the Bank of England has many different discount and loan interest rates, and its published recurring discount rate is the minimum standard.
The main advantage of rediscount business is that it helps the central bank to play the role of lender of last resort, which can adjust both the total money supply and the money supply structure. The main disadvantage of rediscount business is that the initiative of rediscount business lies in commercial banks, not in the central bank, which limits the initiative of the central bank; The adjustment function of rediscount interest rate is limited. Raising the rediscount rate in prosperous times may not inhibit the rediscount demand of commercial banks, because the profitability of commercial banks is higher; Reducing the rediscount rate during the depression may not stimulate the borrowing demand of commercial banks, because the profit level is low at this time. Moreover, the rediscount rate cannot be adjusted frequently, otherwise the frequent fluctuation of market interest rate will make commercial banks at a loss. In addition, the biggest disadvantage of rediscount business is that it tends to follow the economic trend. During the boom period, the price increase made the rediscount bills increase and the money supply increase. Falling prices during the Great Depression also reduced the rediscount and money supply. Therefore, monetary policy may "add fuel to the fire" in the boom period and "add insult to injury" in the recession period.
Open market operation has the following advantages: the central bank can use open market operation to buy and sell securities of any size in time, so as to accurately control the reserve and base currency of the banking system and make it reach a reasonable level. Although it works in the same way as the rediscount interest rate policy and reserve policy, its effect is more accurate than these two policies, and it is not affected by the reaction degree of the banking system. In the open market operation, the central bank has always been in an active position and can completely implement monetary policy according to its own wishes. According to Friedman, the central bank's open market operation is "active attack" rather than "passive waiting".
Open market operation has the following advantages: open market operation has no "notification effect" and will not cause public misunderstanding of monetary policy intention, so it will not cause unnecessary economic chaos. This will enable the central bank to operate the open market continuously and flexibly, without being limited by time and quantity, and will not cause the disorder of economic operation because of the adaptive adjustment of economic subjects, even if the central bank makes policy mistakes, it can be corrected in time. This is impossible for the rediscount interest rate policy and reserve policy with strong "notification effect".
Open market operation has the following advantages: the central bank conducts open market operation and does not determine the yield or interest rate of other securities, so it will not directly affect the bank's income. In addition, open market operation can be widely used, widely affecting social and economic activities. Accordingly, Friedman insisted that the central bank can operate in the open market, completely replace the statutory reserve system and carry out rediscount business.
Open market business must meet the following three conditions in order to fully and effectively play its role:
(1) The central bank must have sufficient financial strength to intervene and control the whole financial market;
(2) There must be a developed, perfect and nationwide financial market with a complete range of securities and a certain scale;
(3) We must cooperate with other policy tools. If there is no deposit reserve system, it is impossible to influence the money supply by changing the excess reserve of commercial banks.
The biggest deficiency of open market business is that countries lacking these three conditions cannot effectively use this policy means; In addition, its role is slow, because it takes a while for the impact of treasury bond transactions on money supply and interest rates to be slowly transmitted to other financial markets and affect economic operation.
Compared with other monetary policy tools, the deposit reserve policy has the following advantages:
(1) The central bank has complete autonomy and is the easiest of the three monetary policy tools to implement;
(2) the change of the deposit reserve ratio has a rapid effect on the money supply, and once it is determined, all commercial banks and other financial institutions must implement it immediately;
(3) The reserve system treats all commercial banks equally, and all financial institutions are equally affected.
The deficiency of the deposit reserve policy lies in:
First, the role is too great, and its adjustment has a great impact on the whole economic, social and psychological expectations, which is not suitable for the central bank as a tool for daily regulation of the money supply, so the central bank has a tendency to fix the reserve ratio;
Second, its policy effect is greatly influenced by the excess deposit reserve of commercial banks. In the case that commercial banks have a large amount of excess reserves, the central bank raises the statutory deposit reserve ratio, and commercial banks use part of the excess reserves as statutory reserves without shrinking the credit scale, which will make it difficult for the central bank to reduce the money supply.
Due to the unbalanced economic and financial development in the eastern, central and western regions of China, the same monetary policy operation has different or even quite different effects in different regions. China's monetary policy operation has always adopted the national "one chess game" mode and implemented indiscriminate management. The "one size fits all" monetary policy operation rarely considers the level difference of regional economic development. Open market operation, rediscount interest rate and statutory deposit reserve ratio are three major tools of China's monetary policy, and the implementation effect of these tools is greatly influenced by the differences between East and West.
Open market operation is the most commonly used monetary policy tool of the central bank, through which the base currency can be influenced. In recent years, the Bank of China has mainly launched the base currency through the open market business. The ability of commercial banks to use open market business to integrate (export) funds is restricted by the total amount of national debt and asset structure. If the national debt of a commercial bank is large and accounts for a large proportion of the total assets of the commercial bank, then its ability to participate in the open market business is strong, otherwise it will be weak. There are great differences in the scale of national debt assets and the proportion of national debt assets to total assets among commercial banks in eastern, central and western China. Due to the lack of national debt assets data of state-owned commercial banks in various provinces, we estimate the national debt assets owned by state-owned commercial banks in various provinces by subtracting the difference between all loans and corporate bonds. By calculating the proportion of national debt assets of state-owned commercial banks in the eastern, central and western regions from 2000 to 2003, we can find that not only the national debt assets of state-owned commercial banks in the eastern region are higher than those in the central and western regions, but also the national debt assets of state-owned commercial banks in the eastern region are higher. The ability of eastern commercial banks to integrate funds by using open market business is stronger than that in the west. Therefore, when the central bank's monetary policy is transmitted through the open market business, the commercial banks in the central and western regions get less base money than those in the eastern region.
The central bank mainly influences the discount loan scale of commercial banks by adjusting the refinancing rate and rediscount rate, thus realizing the intention of monetary policy. The response of commercial banks to refinancing rate and rediscount rate instruments is related to the profit rate of the real economy that needs loans, the demand for capital liquidity, the opportunity cost of holding excess reserves and other factors. Specific to the actual situation in China, the profit rate of the real economy not only affects the environmental risks faced by commercial banks, but also affects the price of funds (interest rate and discount rate), which is undoubtedly one of the most important factors affecting the response of commercial banks to refinancing interest rates and rediscount interest rates. For economic entities, although the supply and demand of funds affect the interest rate and discount rate to a certain extent, in essence, interest is a part of the profits created by the real economy, and the interest rate is ultimately subject to the profit rate of the real economy, which varies between zero profit rate and average profit rate. In other words, the ability of the real economy to bear the interest rate and discount rate of bank loans is restricted by the profit rate. The real economy with higher profit rate can pay higher capital price (interest rate and discount rate), that is, it has relatively strong capital demand, while the real economy with lower profit rate can only pay lower capital price. Because commercial banks in different regions face different profit margins in the real economy, on the one hand, the real economy with higher profit margins has strong ability to digest funds and strong demand for funds, on the other hand, higher profit margins can effectively ensure the safety and profitability of credit funds and reduce the environmental risks faced by commercial banks in lending, so commercial banks are more willing to lend. Therefore, the central bank operates the same rediscount and refinancing policy tools, and in the eastern region with high profit rate of the real economy, commercial bank loans grow rapidly; In the central and western regions where the profit rate of the real economy is low, the growth of commercial bank loans is slow, which leads to the "Matthew effect" in which the poorer regions have less funds and the richer regions have more funds.
As can be seen from the above discussion, different regions in China have different response effects to the same monetary policy tool. In order to eliminate the different effects of regional differences on the effectiveness of monetary policy tools and realize the ideal effect of monetary policy, we can regionalize monetary policy tools including open market business, rediscount interest rate and statutory deposit reserve ratio. In fact, the implementation of different monetary policy operations in different regions is not without precedent abroad. In the early stage of development, the regional economic development in the United States was also unbalanced, and two of the three monetary policy tools of the central bank implemented regional operations. Its discount rate is set by twelve federal reserve banks according to the economic situation in their respective jurisdictions, as long as it is reported to the Federal Reserve Board in Washington for approval. In fact, in the 1920s, the discount rates set by reserve banks often varied greatly, and the discount rates gradually converged until a homogeneous national financial market was gradually formed. Although the statutory deposit reserve ratio was uniformly formulated by the board of directors of the Federal Reserve, the statutory deposit reserve ratio formulated by the Federal Reserve system changed with the economic situation of the region where the bank was located from the establishment of the Federal Reserve in 19 13 until 1972.