The Reserve Requirement Ratio Has Been Cut Down, And The Big Enterprises Have Been Cut Down.

Chinese people

It is understood that after the reduction of the deposit reserve ratio, the deposit reserve ratio of large banks will be 21%, and the deposit reserve ratio of small and medium financial institutions will be 17.5%.

Economists analyzed that this is the first reverse action that the central bank has been using the quantitative monetary policy tools to shrink liquidity in the past 3 years, and the action itself has not exceeded the market expectations.

Because in the early stage of the continuous decline of CPI, M1 and M2 grew at a historic low level, and the money multiplier dropped to a low point, which affected the resource allocation function of banks in the market, resulting in a continuous decline in deposit growth and loans in the banking sector.

In addition, the decline in foreign exchange reserves has led to a rise in bank deposit to loan ratio and a narrowing of the liquidity space released by the recent open market operation.

It is particularly pointed out that lowering the reserve rate indicates that the central bank's policy has shifted from "controlling inflation" as the main goal of monetary policy to "macroeconomic regulation and control of steady growth and structural adjustment". CPI has continued to decline to provide conditions for turning. PMI (China Manufacturing Purchasing Managers' index) has broken through the "dividing line of prosperity and drought" to show that the risk of "hard landing" has increased, making monetary policy shift urgent and necessary.

Gao Yong, vice president and Secretary General of China Textile Industry Federation, said the bank lowered the deposit reserve ratio of RMB to textile.

According to statistics, as of the end of 10, the balance of deposits of financial institutions is 792090 billion yuan. According to the reduction of 0.5 percentage points, the reserve rate will release 396 billion yuan of funds in the banking sector, which will help to alleviate the pressure of deposit and loan ratio and make good contribution to the liquidity of banking industry.

The tightening policy ensures the high interest rate environment in the banking sector. The release of the reserve ratio will change the ability of the banking industry to set prices, thereby affecting the net interest margin of the banking industry.

That is to say, in the financial environment, lowering the reserve rate will reduce the interest rate of the interbank market, and thus have a negative impact on the yield of interbank assets business, but it will help to ease the deposit and loan ratio of banks. In this way, the days of queuing and lending are expected to advance in large textile and garment enterprises that have loan business with banks.