Introduction: According to news from the official website of the Central Bank on January 6, the 2021 Central Bank Work Conference was held on January 4 to summarize the main work in 2020, analyze the current situation, and deploy work in 2021. ?
As the "wind vane" for the central bank's work in the new year, the 2021 central bank work conference was held recently. The meeting deployed ten major work priorities in 2021 and sent multiple major signals to the market. ?
This meeting set the ten work tasks for 2021. ?
First, a prudent monetary policy must be flexible, precise, reasonable and appropriate. ?
The second is to continue to give full play to the precise drip-feeding role of structural monetary policy tools and credit policies, and build a financial system and mechanism to effectively support the real economy such as small and micro enterprises. ?
The third is to implement major decisions and arrangements for carbon peak and carbon neutrality, and improve the green finance policy framework and incentive mechanism. ?
The fourth is to accelerate the improvement of the macro-prudential policy framework and bring major financial activities, financial institutions, financial markets and financial infrastructure into macro-prudential management. ?
The fifth is to continue to prevent and resolve financial risks. Strengthen risk investigation and prepare risk responses. ?
The sixth is to deeply participate in global financial governance, strictly prevent and control external financial risks, and steadily expand two-way financial opening up. ?
Seventh, steadily and prudently promote the internationalization of the RMB. ?
The eighth is to deepen the reform of financial markets and financial institutions. ?
Ninth, we will continue to improve foreign exchange management and services. Promote the opening up of capital projects in a steady and orderly manner. ?
The tenth is to improve financial services and management levels. ?
The meeting required that prudent monetary policy should be flexible, precise, reasonable and appropriate; continue to give full play to the role of structural monetary policy tools and credit policies in precise drip irrigation, and build a financial system and mechanism to effectively support small and micro enterprises and other real economies. . ?
It is worth mentioning that after the fourth quarter regular meeting of the Central Bank’s Monetary Policy Committee in 2020 first mentioned “carbon peaking and carbon neutrality goals”, the central bank’s work meeting once again pointed out that it is necessary to implement carbon peaking Deploy major decisions on carbon neutrality and improve the green finance policy framework and incentive mechanism. We will do a good job in policy design and planning, and guide financial resources to tilt toward green development. ?
Sound monetary policy must be flexible, precise, reasonable and appropriate?
Based on an in-depth analysis of the current economic and financial situation, the meeting required that in 2021 the People’s Bank of China system must fully implement the Party’s In the spirit of the Fifth Plenary Session of the 19th CPC Central Committee and the Central Economic Work Conference, stability should be the top priority, grasp the key points, hold the bottom line, dare to take on responsibilities, conscientiously perform the duties of the Office of the Financial Affairs Commission of the State Council, build a modern central bank system, and continue to do a good job in "six stability" and "six stability". "Guarantee" work and provide strong and effective financial support to accelerate the construction of a new development pattern. ?
To this end, the meeting proposed ten work tasks for 2021. Among them, the first requirement is that "prudent monetary policy must be flexible, precise, reasonable and appropriate." We will improve the money supply control mechanism and keep the growth rate of broad money and social financing basically in line with the nominal economic growth rate. We will improve the formation and transmission mechanism of market-oriented interest rates, deepen the reform of loan market quotation rates, and promote the marketization of deposit interest rates. Deepen the market-oriented reform of the RMB exchange rate, strengthen macro-prudential management, guide market expectations, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. ?
Looking back on 2020, the central bank adheres to the three major policy orientations of moderate aggregate policy, reducing financing costs, and supporting the real economy, and does a good job in cross-cyclical design. The deposit reserve ratio was reduced three times to provide 1.75 trillion yuan in long-term liquidity. A total of more than 9 trillion yuan of monetary policy support measures have been introduced. We will proactively guide interest rates down and achieve the goal of transferring 1.5 trillion yuan of profits from the financial system to the real economy. Keep the RMB exchange rate basically stable at a reasonable and balanced level. my country has become the first major economy in the world to achieve positive growth, and is also one of the few major economies to implement normal monetary policies. ?
Judging from the central bank’s work conference, supporting the real economy will remain the key work direction in 2021. The second request of the meeting stated that "continue to give full play to the precise drip-feeding role of structural monetary policy tools and credit policies, and build a financial system and mechanism to effectively support small and micro enterprises and other real economies." ?
For example, the extension of principal and interest repayment of Inclusive Small and Micro Enterprise Loans and the Inclusive Credit Loan for Small and Micro Enterprises, two monetary policy tools that directly reach the real economy (hereinafter referred to as the "two direct monetary policy tools") will be continued. ").
Continue to use inclusive re-lending and re-discount policies to guide financial institutions to increase support for key areas and weak links in the national economy such as "agriculture, rural areas and farmers", technological innovation, small and micro enterprises, and private enterprises. Take the lead in leveraging the synergy of financial policies to support small and micro enterprises. Effectively connect poverty alleviation with financial services for rural revitalization. ?
Not long ago, the central bank, together with the China Banking and Insurance Regulatory Commission and other five ministries and commissions, issued the "On Matters Related to the Continuing Implementation of the Deferred Principal and Interest Payment Policy for Inclusive Small and Micro Enterprise Loans and the Inclusive Credit Loan Support Policy for Small and Micro Enterprises" Notice" clarifies that both direct monetary policy tools have been extended to March 31, 2021, and the total amount of relevant funds is controlled within the quota approved by the State Council. ?
Wen Bin, chief researcher of China Minsheng Bank, said that in 2021, it is still emphasized that prudent monetary policy must be flexible, precise, reasonable and appropriate. On the one hand, keeping the growth rate of broad money and social financing basically matching the nominal economic growth rate is to create a reasonable credit environment for steady economic growth in terms of total volume. On the other hand, under the total target, more emphasis is placed on flexibility and precision, focusing on key areas of economic development and vulnerability mitigation, such as technological innovation, green finance, agriculture, rural areas, small and micro enterprises, and private enterprises. ?
Implement major decisions and arrangements to reach carbon peak and carbon neutrality?
Compared with 2020, the central bank’s 2021 work conference specifically singled out the relevant content of “green finance”. Deployment, and ranks third among the top ten job tasks. The meeting called for the implementation of major decisions and arrangements for reaching carbon peak and carbon neutrality, and improving the green finance policy framework and incentive mechanism. ?
Specifically, it is necessary to do a good job in policy design and planning, guide financial resources to tilt towards the field of green development, enhance the ability of the financial system to manage risks related to climate change, and promote the construction of a carbon emissions trading market to ensure reasonable carbon emissions. Pricing. Gradually improve the green finance standard system, clarify the supervision and information disclosure requirements of financial institutions, establish a policy incentive and restraint system, improve green financial products and market systems, and continue to promote international cooperation in green finance. ?
It is worth mentioning that the Central Economic Work Conference has regarded "doing a good job in carbon peaking and carbon neutrality" as one of the key tasks in 2021, and proposed that my country's carbon dioxide emissions should strive to peak before 2030. , striving to achieve carbon neutrality before 2060, and demanding the urgent formulation of an action plan to peak carbon emissions before 2030. ?
Subsequently, at the fourth quarter regular meeting of 2020, the Central Bank’s Monetary Policy Committee mentioned for the first time “improving the green financial system with the goal of promoting carbon peaking and carbon neutrality.” Under this circumstance, whether supervision will further increase the regulatory indicators for green finance has attracted attention in the industry. ?
Wang Yifeng, chief analyst of the financial industry at Everbright Securities Research Institute, believes that it is expected that the assessment of green finance will be further intensified in the MPA (macro-prudential assessment) assessment system in 2021. This year, structural monetary policy will be the main focus. It is speculated that the implementation of credit policies will continue to be included in the MPA assessment, and credit support for manufacturing, inclusive finance, and green finance will not be reduced, while financial support for major national scientific and technological innovation areas will be enhanced. ?
According to data from the central bank, at the end of the third quarter of 2020, the balance of domestic and foreign currency green loans was 11.55 trillion yuan, an increase of 16.3% from the beginning of the year, of which the balance of corporate green loans was 11.51 trillion yuan, accounting for 11.51 trillion yuan of loans to enterprises and institutions during the same period. 10.5%. In terms of purpose, the balance of infrastructure green upgrade industry loans and clean energy industry loans were 5.56 and 3.08 trillion yuan respectively, an increase of 17.1% and 9.3% respectively from the beginning of the year. In terms of industries, the balance of green loans in the transportation, warehousing and postal industries was 3.52 trillion yuan, an increase of 9.9% from the beginning of the year; the balance of green loans in the electricity, heat, gas and water production and supply industries was 3.33 trillion yuan, an increase of 10.3% from the beginning of the year. ?
In a video speech at the Singapore Fintech Festival, Yi Gang, governor of the Central Bank, said that as of June 2020, China's green credit balance has exceeded 11 trillion yuan, ranking first in the world; green bonds The stock size is approximately 1.2 trillion yuan, ranking second in the world. He further pointed out that some green finance pilot zones in China have explored the integration of financial technology and green finance scenarios. In Huzhou, the local government has used the Internet, big data and other technologies to build a comprehensive green finance service platform to reduce environmental and climate-related information asymmetry and help green enterprises, projects and financial institutions quickly connect. The People's Bank of China can also monitor bank green loan and other data through the platform.
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Commissar Lu, chief economist of Industrial Bank, once wrote that with the introduction of the carbon neutrality goal, the transformation of my country's economic and industrial structure will also be further deepened, and the bank's credit business will also need to further shift towards low-carbon industries. Tilt and strengthen support for green industries. At the same time, under the strengthened emission reduction targets, green industries such as renewable energy, new energy vehicles, and carbon capture and storage (CCS/BECCS) have huge development potential and will also bring sustainable development opportunities to banks.