Shenzhen News Network, July 9th (Reporter Tang Sha) According to the Central Bank's website on the 9th, in order to support the development of the real economy and promote the steady and slow reduction of comprehensive financing costs, the People's Bank of China decided to reduce deposits in financial institutions on July 15, 2021 The reserve ratio is 0.5 percentage points (excluding financial institutions that have implemented a deposit reserve ratio of 5%). After this reduction, the weighted average deposit reserve ratio of financial institutions was 8.9%. The central bank said that since the beginning of this year, the prices of some commodities have continued to rise, and some small and micro enterprises have faced operating difficulties such as rising costs. China adheres to the stability and effectiveness of monetary policy. The support of micro enterprises. In the next step, the People’s Bank of China will continue to implement a prudent monetary policy, adhere to the principle of stability, maintain reasonable and sufficient liquidity, keep the money supply and the growth rate of social financing scale basically matching the nominal economic growth rate, do a good job of cross-cycle design, and support Small and medium-sized enterprises, green development, and technological innovation create a suitable monetary and financial environment for high-quality development and supply-side structural reforms. The release of long-term funds of about 1 trillion yuan will not change the orientation of prudent monetary policy.

The person in charge of the central bank said in response to reporters that the purpose of this RRR cut is to optimize the capital structure of financial institutions, improve financial service capabilities, and better support the real economy. First, while maintaining reasonable and abundant liquidity, the financial institutions should strengthen their capital allocation capabilities to create a suitable monetary and financial environment for high-quality development and supply-side structural reforms. The second is to adjust the financing structure of the central bank, effectively increase the long-term stable funding sources for financial institutions to support the real economy, and guide financial institutions to actively use the RRR cut funds to increase support for small and micro enterprises. The third is that the RRR cut has reduced the capital cost of financial institutions by about 13 billion yuan per year, and the transmission of financial institutions can promote the reduction of social comprehensive financing costs. "The RRR cut is a routine operation after the monetary policy returns to normal. Part of the funds released will be used by financial institutions to return the maturity of the medium-term loan facility (MLF), and part of the funds will be used by financial institutions to make up for the middle and late July. The liquidity gap caused by the peak of the tax period has increased the proportion of long-term funds of financial institutions, and the total liquidity of the banking system will remain basically stable. The orientation of prudent monetary policy has not changed.” Talking about whether the RRR cut will change the monetary policy. When orientation, the person in charge of the central bank said. The RRR cut is a comprehensive reduction. Except for some county-level legal person financial institutions that have implemented a 5% deposit reserve ratio, the deposit reserve ratio for other financial institutions is generally reduced by 0.5 percentage points, and the RRR cut releases about 1 trillion yuan in long-term funds. . The main reason for not lowering the deposit reserve ratio of some financial institutions is that the 5% deposit reserve ratio is currently the lowest among financial institutions. Maintaining this low level is conducive to financial institutions' support for the real economy and their own sound operation.