[ad_1]
SHANGHAI (Reuters) – China should encourage its banks to support small private companies in the real economy, rather than forced lending or measures such as quantitative easing, said a Saturday newspaper 39 State, quoted by a central bank official.
"The central bank does not want to use administrative methods to force banks (to lend)," said Sun Guofeng, head of the monetary policy department at the People's Bank of China (PBOC), Financial News, a banking publication. .
"He wants to put in place positive incentive mechanisms through monetary policy tools to encourage banks to actively strengthen their support for the real economy, especially for small private companies," he said. said Sun.
The comments come a month after Sun wrote a comment in which he baderted that the problems of timely replenishment of capital, bank liquidity spreads and "transmission" of mediocre rates were three major constraints on the bank. Credit supply of banks.
In his interview with Financial News, Sun said the transmission of monetary policy was "significantly improved", showing that measures to strengthen the transmission mechanisms had been effective.
He said the central bank would strengthen the strength of innovation in monetary policy tools.
The issuance of perpetual bonds "is only a breakthrough" in reducing banks' capital constraints, Sun said, adding that "other methods" could be used in the future.
He said that quantitative easing was neither necessary nor possible at the moment, noting that in the Chinese financial system, the importance for the central bank to buy treasury bonds Chinese in the secondary market is limited, and that the PBOC is prevented market.
Chinese banks granted the largest number of new loans ever recorded in January, following a series of measures to boost lending as authorities tried to prevent a sharp slowdown in the second-largest economy World.
(Report by Andrew Galbraith, edited by Darren Schuettler)
Source link
