Reporters learned from the central bank’s website on March 4 that the People’s Bank of China, together with the Ministry of Finance and the China Banking and Insurance Regulatory Commission, held a symposium and teleconference on financial support for epidemic prevention and control and economic and social development on the 3rd, proposing multiple plans for the next stage. This work requires a prudent monetary policy that pays more attention to flexibility and appropriateness, and strengthens the construction of financial service capabilities for small and micro enterprises. This is another important deployment by relevant regulatory authorities in recent times to combat the epidemic and stabilize the economy.
In recent times, the central bank, China Banking and Insurance Regulatory Commission and other departments have issued a number of important documents to deploy financial support for epidemic prevention and control and the resumption of work and production. Industry insiders said that while a number of financial policies that have been implemented recently have promoted the "expansion of the total amount" of credit, they have also emphasized precise support for key enterprises in epidemic prevention and control as well as small, medium and micro enterprises. At the same time, real estate financial policies will adhere to the tone of "housing is for living, not for speculation" and maintain continuity, consistency, and stability.
The policy urges credit extension to "increase quantity and reduce price"
The symposium and television and telephone conference on financial support for epidemic prevention and control and economic and social development emphasized that the financial sector must support the recovery and development of the real economy Put it in a more prominent position, increase credit supply, and, while adhering to the principles of legalization and marketization, take practical measures to tap potential, benefit enterprises, reduce financing costs, and help enterprises tide over difficulties. The meeting proposed that prudent monetary policy should pay more attention to flexibility and appropriateness, maintain reasonable and sufficient liquidity, improve the macro-prudential assessment system, and release the potential of LPR reform.
Increasing credit and reducing financing costs have become the focus of current financial policies. In terms of expanding its credit supply capacity, the central bank comprehensively uses tools such as medium-term lending facilities, open market operations, and standing lending facilities to meet the liquidity needs of financial institutions to support the resumption of work and production. The China Banking and Insurance Regulatory Commission has issued a number of measures alone or in conjunction with relevant ministries and commissions. We will prepare financial services documents for epidemic prevention and control, urge banks and insurance institutions to open green channels for financial services, ensure the supply of credit resources, fully meet the reasonable financing needs of epidemic prevention and control enterprises, and require wholesale and retail, accommodation and catering, logistics and transportation that are greatly affected by the epidemic. , cultural tourism and other industries must not blindly withdraw loans, cut off loans, or suppress loans.
In terms of reducing financing costs, the central bank guided the LPR downward by lowering policy interest rates such as MLF interest rates and open market operation reverse repurchase rates. At the same time, the central bank has also set up a special re-loan of 300 billion yuan, and the finance department will provide interest subsidies to ensure that the loan interest rate for key anti-epidemic enterprises is below 1.6%. Recently, the central bank increased the special quota for re-lending and rediscounting to support agriculture and small businesses by another 500 billion yuan, and at the same time lowered the interest rate on re-lending to support agriculture and small businesses by 0.25 percentage points to 2.5%.
With the rapid implementation and implementation of policies, there is an obvious trend of "increase in quantity and decrease in price" in credit extension. The latest data from the Banking Association shows that the current total credit support for various banking financial institutions in fighting the epidemic exceeds 1.25 trillion yuan. At the same time, the capital cost burden of key enterprises has also dropped significantly. Taking policy banks as an example, as of the end of February, the Agricultural Development Bank of China had approved loans of 18.058 billion yuan to 242 key national enterprises listed by the central bank, and issued qualified loans to 209 enterprises, totaling 10.165 billion yuan. The weighted average interest rate is 2.45%, which is 60 basis points lower than the upper limit of the preferential interest rate.
Precision policy implementation for small, medium and micro enterprises has become a focus
Industry insiders said that the "total expansion" of credit in response to the epidemic is not a flood of funds. Wen Bin, chief researcher of Minsheng Bank, said that the recent credit expansion has obvious directional and structural characteristics. Therefore, the release of funds is not a flood, but more emphasis on investing funds in key enterprises for epidemic prevention and control as well as small, medium and micro enterprises. , which will help companies resume work and production and keep the economy running smoothly.
The above-mentioned symposium and television and telephone conference on financial support for epidemic prevention and control and economic and social development clearly stated that “providing rapid and accurate support to enterprises that ensure epidemic prevention and control”, “increase efforts in areas severely affected by the epidemic, Financing support for industries and enterprises, and strengthening financial services for key areas and weak links such as advanced manufacturing, poverty alleviation, people’s livelihood and employment,” and “increasing inclusive financial support for small, medium and micro enterprises and other fields.”
In the past 20 days, the State Council has held 4 executive meetings, all of which mentioned supporting enterprises to resume work and production, especially requiring financial institutions to increase credit to small, medium and micro enterprises and increase the issuance of special financial bonds for small, medium and micro enterprises. Strengthen efforts, and strengthen medium and long-term loans to small, medium and micro enterprises, and not blindly withdraw loans and cut off loans, etc.
In order to encourage banks to actively extend loans to small and micro enterprises, the China Banking and Insurance Regulatory Commission has recently made temporary adjustments to the determination of non-performing loans. On March 1, five ministries and commissions including the China Banking and Insurance Regulatory Commission issued the "Notice on Implementing Temporary Delay in Principal and Interest Payment for Loans to Small, Medium and Micro Enterprises" requiring that for the principal of loans to small, medium and micro enterprises that have matured since January 25, 2020, As well as the loan interest that small, medium and micro enterprises need to pay from January 25 to June 30, 2020, banking financial institutions should provide enterprises with a temporary extension of principal and interest payment arrangements for a certain period based on the enterprise's application. The notice also emphasizes that for loans with temporary extension of principal and interest payments, banking financial institutions should adhere to substantial risk judgments and not downgrade loan risk classification due to epidemic factors, nor affect corporate credit records.
In an interview with a reporter from the Economic Information Daily, the relevant person in charge of the Agricultural Development Bank of China also said that in the annual loan plan approved by the central bank for three policy banks, *** has allocated 350 billion yuan as a special project The credit plan clearly requires three policy banks, including the Agricultural Development Bank of China, to be used specifically to support the resumption of work and production of small, medium and micro enterprises affected by the epidemic. The introduction of this policy can give full play to the special role of the Agricultural Development Bank of China as a policy bank in taking the lead, making up for shortcomings, and being counter-cyclical, and leverage other social funds to expand credit support for small, medium and micro enterprises to resume work and production.
Wang Qing, chief macro analyst of Oriental Jincheng, said that currently, small, medium and micro enterprises are generally facing tight liquidity. The current series of financial measures will play a more obvious "emergency" role and alleviate the short-term impact of the epidemic on small and medium-sized enterprises. Negative impact on corporate survival and operations.
Real estate financial policies will remain consistent and stable
It is worth noting that the above-mentioned financial support epidemic prevention and control and economic and social development symposium and television and telephone conference also clearly stated that houses should be used for The positioning of "come to live, not for speculation" and the requirement of "not using real estate as a means of short-term economic stimulation" maintain the continuity, consistency and stability of real estate financial policies.
Recently, real estate policies in some places have been adjusted. Some banks have lowered the down payment ratio of mortgage loans for some customers in certain regions, triggering market speculation about loosening real estate financial policies. "Judging from the statements at the meeting, the overall tone of real estate finance has not changed, and the adjustments of individual banks have not exceeded the bottom line of the policy." Wen Bin said.
On March 1, the conversion of pricing benchmarks for existing floating-rate loans was launched as scheduled. In accordance with the special requirements put forward by the central bank for the conversion of housing loan pricing benchmarks, the interest rate level of existing commercial personal housing loans at the time of conversion should remain unchanged. This is mainly to implement the real estate market control requirements.
Dong Ximiao, chief researcher of Xinwang Bank, said that my country’s market liquidity will continue to be reasonably abundant and market interest rates are expected to decline further. In this case, mortgage interest rates may have some room to fall. However, the more favorable mortgage interest rates will mainly focus on first-home loans, aiming to reduce the burden on home buyers who just need a home, while higher interest rates will still apply to second-home loans and above.