The Central Bank report shows that in the first quarter of this year, the lending environment for sm
Jul 02, 2019 ｜ by CT
China’s monetary policy implementation report in the first quarter of 2019 issued recently by the Central Bank shows that since 2019, the People’s Bank of China has continued to guide financial institutions to increase their lending support to small and micro enterprises, with gradual results. Credit structure continues to be optimized, loans for small and micro enterprises have increased significantly, and the growth of medium and long-term loans has accelerated. In the first quarter, inclusive small and micro loans increased by 552.9 billion yuan, an increase of 290 billion yuan over the same period last year. At the end of March, the balance grew by 19.1%, an increase of 3.9 percentage points over the end of last year, which was 5.4 percentage points higher than the growth rate of all loans. With the counter-cyclical adjustment effect of targeted monetary policy in the early stage gradually showing, policy transmission improved, and credit demand improved, loan growth maintained relatively fast.
Regarding the reform of interest rate marketization, the report points out that in the next stage, we should steadily promote the “two-track integration” of interest rates, strengthen the guiding function of the Central Bank’s policy interest rate system, improve the mechanism of interest rate corridor, enhance the ability of interest rate regulation, focus on dredging the transmission of the Central Bank’s policy interest rate to the market interest rate, especially the credit interest rate, enhance the loan pricing ability of financial institutions, and moderately enhance market competition, better service to the real economy. We will continue to cultivate market benchmark interest rates and improve the yield curve of treasury bonds, and improve the market-oriented interest rate formation mechanism. Strengthen the supervision and management of irrational pricing behavior of financial institutions, give full play to the guiding role of market interest rate pricing self-discipline mechanism, take effective ways to encourage and restrain interest rate pricing behavior, and strengthen industry self-discipline and risk prevention.
