The people's Bank of China announced today that in order to support the development of the real economy and promote the steady decline of comprehensive financing costs, the people's Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on December 15 (excluding financial institutions that have implemented the 5% deposit reserve ratio), releasing a total of about 1.2 trillion yuan of long-term funds. After this reduction, the weighted average deposit reserve ratio of financial institutions is 8.4%. In an interview with the people's financial reporter, many industry experts said that the RRR reduction is a concrete embodiment of cross cycle regulation and has not changed the prudent monetary policy orientation. This will further guide financial institutions to increase support for key areas and weak links, reduce financing costs of the real economy and promote economic operation within a reasonable range. Comprehensive RRR reduction meets the needs of market players Turning to the reasons for this RRR reduction, Dong ximiao, chief researcher of Zhaolian finance, believes that internationally, the global economic boom has declined in the second half of this year, and the rising energy prices and tight supply chain have restricted the economic recovery of various countries. Domestically, the economy grew rapidly in the first half of the year, but the year-on-year growth rate of gross domestic product (GDP) in the third quarter was 4.9% and the average growth rate in the two years was 4.9%. Some areas and small, medium and micro enterprises are still difficult. Dong ximiao said that it is very necessary and timely for the central bank to announce a comprehensive RRR reduction at this time, which will help stabilize the confidence and expectations of market players, promote the steady and sustainable recovery of the real economy, and help enterprises get out of difficulties and develop healthily. Tang Jianwei, chief researcher of the financial research center of Bank of communications, believes that the RRR reduction is an appropriate response to the objective situation of economic downturn and rising risks in some fields. The purpose is to strengthen cross cycle regulation to better support the real economy and prevent financial risks. "At this time, reducing the reserve requirement is not only space, but also necessary." Wen bin, chief researcher of Minsheng Bank, said that on the one hand, China's economic work next year will face no small pressure and challenges. Reducing the reserve requirement is a concrete embodiment of cross cycle regulation. On the other hand, the overall RRR reduction of 0.5 percentage points reflects that the monetary policy increases the support for the real economy, especially small, medium-sized and micro enterprises, helps to optimize the capital structure of the banking system, reduce the capital cost of banking institutions, encourage and guide financial institutions to further increase their support for the real economy and reduce the financing cost of the real economy. "The purpose of this RRR reduction is to strengthen cross cycle regulation, optimize the capital structure of financial institutions, improve financial service capacity and better support the real economy." the relevant person in charge of the people's Bank of China said that first, while maintaining reasonable and sufficient liquidity, effectively increase the long-term stable capital sources of financial institutions to support the real economy and enhance the capital allocation capacity of financial institutions. Second, guide financial institutions to actively use the funds for RRR reduction and increase support for the real economy, especially small, medium and micro enterprises. Third, the RRR reduction reduces the capital cost of financial institutions by about 15 billion yuan per year, which can promote the reduction of social comprehensive financing cost through financial institution transmission. Release long-term funds of about 1.2 trillion yuan "This RRR reduction is a comprehensive RRR reduction. Except for some county legal person financial institutions that have implemented the 5% deposit reserve ratio, the deposit reserve ratio is generally reduced by 0.5 percentage points for other financial institutions. At the same time, considering that most financial institutions participating in the assessment of Inclusive Finance targeted RRR reduction have achieved the goal of supporting agriculture and small expenditure (including individual industrial and commercial households) And other assessment standards, policy objectives have been achieved, and relevant financial institutions have uniformly implemented the most preferential deposit reserve ratio, so that the RRR reduction will release a total of about 1.2 trillion yuan of long-term funds, "said the relevant person in charge of the people's Bank of China. What specific impact will this RRR reduction have on the market? Dong ximiao said that this will continue to provide banks with long-term, stable and low-cost funds, increase the liquidity of the banking system and reduce the cost of bank funds, help to improve the willingness and ability of banks to serve small, medium-sized and micro enterprises and individual industrial and commercial households, consolidate the policy effects of reducing the comprehensive financing cost of the real economy, and make banks benefit the real economy The behavior of serving small and micro enterprises is more sustainable. "According to the central bank's estimation, the RRR reduction will reduce the capital cost of banks by about 15 billion yuan per year. After the RRR reduction, banks will have more liquidity, lower capital cost, and improve their willingness and ability to provide credit. For enterprises, it will be easier to obtain loans from banks, and the loan interest rate is expected to decline further and the financing cost will be lower." Dong ximiao said. Wang Qing, chief researcher of Dongfang Jincheng, believes that the RRR reduction can moderately reduce the financing costs of small, medium-sized and micro enterprises, partially hedge the pressure on enterprise operation caused by the rise of upstream raw material prices, effectively release the signal of steady growth, and help stabilize the macroeconomic operation at the end of this year and the beginning of next year. "This RRR reduction once again highlights the autonomy of China's monetary policy. At present, China's monetary policy emphasizes' focusing on me ', which is in line with the actual needs of domestic economic regulation and the general law that major country policies are generally more introverted." Wang Qing said that considering that China's exports will continue to grow at a high rate at present and in the future, The RRR reduction may moderately curb the rapid appreciation of RMB and provide a more stable and favorable exchange rate environment for export enterprises. It has not changed the prudent orientation of monetary policy The relevant person in charge of the people's Bank of China said that the orientation of prudent monetary policy has not changed. The RRR reduction is a routine operation of monetary policy. Some of the released funds will be used by financial institutions to repay the due medium-term loan facility (MLF), and some will be used by financial institutions to supplement long-term funds to better meet the needs of market players. "This RRR reduction is a comprehensive RRR reduction, but it does not mean that monetary policy is easing. Although the RRR reduction has released about 1.2 trillion yuan, part of the funds will be used to repay the maturing medium-term loan facility (MLF). The liquidity actually released is relatively controllable and there is no 'flood of water'." Dong ximiao said that the purpose of this RRR reduction is to strengthen cross cycle regulation, Optimizing the term structure of financial institutions' funds to better support and serve the real economy also sends another signal of maintaining reasonable and sufficient liquidity, which is conducive to the recovery and consolidation of the real economy and fundamentally conducive to the healthy and sustainable development of the real estate market and capital market. Wen bin also believes that the RRR reduction is not a shift to loose monetary policy, but on the premise of ensuring reasonable and sufficient liquidity, give better play to the role of structural monetary policy tools, increase support for key areas and weak links such as small and medium-sized enterprises, green development and scientific and technological innovation, promote the economy to climb over the barrier and promote the economic operation in a reasonable range. Tang Jianwei pointed out that the path of RRR reduction on the banking system is to release more long-term funds by reducing the debt cost of the banking system. The final landing of funds will focus on benefiting the real economy, especially increasing support for key areas and weak links such as small and medium-sized and micro enterprises, green, science and innovation, manufacturing and so on. "In the next step, the people's Bank of China will continue to implement a prudent monetary policy, adhere to the principle of stability, do not engage in flood irrigation, take into account internal and external balance, maintain reasonable and sufficient liquidity, maintain the growth rate of money supply and social financing scale, basically match the economic growth of the same name, strengthen cross weekly regulation, coordinate the connection of macro policies this year and next year, and support small and medium-sized enterprises, green development Scientific and technological innovation will create a suitable monetary and financial environment for high-quality development and supply side structural reform, "said the relevant person in charge of the people's Bank of China. (outlook new era)