Central Bank: Monetary Policy Should Be More Flexible, Moderate And Precise In The Second Half Of The Year

On August 3, the People's Bank of China held a video conference on the work of the second half of 2020, which required that in the second half of 2020, the People's Bank system should fully implement the decisions and deployment of the Party Central Committee and the State Council, adhere to the general tone of progress while maintaining stability, adhere to the new development concept, take the supply side structural reform as the main line, do a solid job of "six stability" and comprehensively implement the task of "six guarantees", We should adhere to the principle of moderate and reasonable growth in the total amount, focus on stabilizing enterprises to ensure employment, prevent and resolve major financial risks, accelerate the deepening of financial reform and opening up, and promote the healthy development of economy and finance.

First, the monetary policy should be more flexible, appropriate, and precisely oriented, and effectively implement the policies that have been issued to stabilize enterprises and ensure employment. We comprehensively used a variety of monetary policy tools to guide the growth of the broad money supply and the scale of social financing significantly higher than last year. At the same time, we should pay attention to the rhythm, optimize the structure, and promote the substantial growth of inclusive small and micro enterprise loans, and medium - and long-term loans to the manufacturing industry. Focus on the implementation of the 1 trillion yuan refinancing and rediscount policy and two direct tools, which should be extended as far as possible to include as many small and micro enterprises affected by the epidemic into the scope of support. At the same time, adhere to the principle of marketization, respect commercial banks' autonomy, support policies without additional hard requirements, and eliminate the concerns and concerns of small and micro enterprises. We will do a good job of periodic supervision, evaluation, and acceptance, promote a significant decline in corporate financing costs, and effectively promote the financial system to make profits available to enterprises.

The second is to hold the bottom line and continue to fight a three-year battle to prevent and resolve major financial risks. We will continue to follow the established deployment of the CPC Central Committee and the State Council, as well as the specific requirements of the Financial Commission, to promote the completion of the three-year battle as scheduled, and to turn to normalized risk prevention and control and risk disposal. We will accelerate efforts to address the weaknesses of the financial risk management system and improve the emergency response mechanism for major financial risks. Implement the accountability requirements of the Finance Committee of the State Council, implement accountability for the formation and disposal of major financial risks, and further compact the responsibilities of all parties. Strengthen the protection of financial consumption rights and interests. Strengthen risk monitoring and assessment, and pay close attention to the marginal changes of financial risks. Give full play to the role of the deposit insurance system.

Third, we will unswervingly promote the steady and orderly opening up of the financial industry. We will continue to implement the announced financial opening measures. We will promote the full implementation of the pre access national treatment plus negative list system. Actively and steadily promote the internationalization of RMB and the convertibility of capital account, and unify the foreign exchange management policy of bond market opening to the outside world. Deeply participate in global financial governance and earnestly safeguard multilateralism.

Fourth, we continued to deepen the reform of financial systems and mechanisms. Earnestly perform the responsibilities of the Office of the Finance Committee, and promote the implementation of various measures for financial reform that have been introduced. We will support local governments to deepen the market-oriented reform of rural financial institutions with the goal of defusing regional financial risks. In promoting reform, it is necessary to maintain the overall stability of the legal person status of county rural financial institutions and the integrity of China's financial organization system. Promote capital replenishment of small and medium-sized banks, and focus on increasing support for small and medium-sized banks to issue capital replenishment bonds. We will deepen reform of development oriented policy based financial institutions. Continue to take the lead in promoting key legislation in the financial industry, and deepen the reform of "decentralization, regulation and service".

Fifth, continue to do a good job in financial management and financial services. We will make overall plans for financial poverty alleviation at the closing stage. We carefully organized the drafting of the 14th Five Year Plan for financial reform and development. We will deepen the pilot program of green finance, inclusive finance, and scientific innovation finance. We will improve the statistical system for local financial organizations. We will promote the construction of a modern central bank accounting and financial system. Steadily and prudently promote the pilot project of combining local and foreign currency bank accounts. We will accelerate the improvement of the financial technology regulatory framework. Improve the quality of treasury accounting. Promote the interconnection of credit information. Effectively carry out anti money laundering supervision, investigation, monitoring and analysis according to law. Actively and steadily promote the research and development of legal digital currency. Accelerate the establishment of a transaction reporting system and a total transaction reporting database covering the whole market.