The people's Bank of China has recently made it clear that from January 1, 2022, it will implement the continuous transformation of two monetary policy tools directly reaching the real economy: the inclusive small and micro enterprise loan extension support tool and the inclusive small and micro enterprise credit loan support plan. Specifically, it is to convert the Pratt & Whitney small and micro enterprise loan extension support tool into the Pratt & Whitney small and micro enterprise loan support tool, and incorporate the Pratt & Whitney small and micro enterprise credit loan support plan into the management of agricultural support and small refinancing. By establishing a positive incentive mechanism, guide local corporate banks to make independent decisions and bear their own risks, and expand financial support for small and micro enterprises. During the epidemic in 2020, the people's Bank of China implemented the deployment of the CPC Central Committee and the State Council and created two monetary policy tools directly to the real economy to alleviate the impact of the epidemic on small and micro enterprises, which are mainly used to support financial institutions to postpone the repayment of principal and interest on loans to small and micro enterprises in temporary difficulties, and encourage financial institutions to increase credit loans to small and micro enterprises. It will be implemented until the end of 2021 after two extensions. Compared with the previous monetary policy tools directly to the real economy, such as refinancing and rediscount, the two monetary policy tools directly to the real economy have more significant characteristics of marketization, inclusiveness and direct access. The two monetary policy tools directly to the real economy have effectively reduced the pressure on small and micro enterprises to repay principal and interest at different stages, and alleviated the problems of lack of mortgage and financing difficulties of small and micro enterprises. The data show that by the end of November 2021, the people's Bank of China had provided 18.9 billion yuan of incentive funds through the support tool for the extension of principal and interest repayment of inclusive small and micro enterprise loans, directly led local corporate banks to extend 2 trillion yuan of inclusive small and micro enterprise loans, and leveraged national banking institutions to extend 15.1 trillion yuan of loans; Through the inclusive small and micro credit loan support plan, 317.5 billion yuan of low-cost funds were provided, which directly led local corporate banks to issue 879.4 billion yuan of inclusive small and micro credit loans, and leveraging national banking institutions to issue 9.6 trillion yuan of inclusive small and micro credit loans. Small and micro enterprises play an important role in the national economy. There are many subjects in the small and micro market, which is not only a manifestation of economic vitality, but also the main force driving employment. Affected by the epidemic, the operation and development of small and micro enterprises are facing great difficulties. The sharp rise in the prices of bulk commodities has increased the raw material costs of small and micro enterprises, the potential of domestic demand cannot be effectively released, reducing the demand for products and services of small and micro enterprises, and the point-to-point outbreak of the epidemic has an adverse impact on the employment of small and micro enterprises. In terms of stabilizing the macro-economic market, ensuring market players and stabilizing employment, we need to continue to increase financial support for small and micro enterprises. In terms of providing financial services for small and micro enterprises, local corporate banks have obvious advantages. They focus more on local economic development, understand the regional economy better, have a short decision-making chain and flexible mechanism, and can provide more targeted financial product innovation around small and micro enterprises, so as to better meet the financing needs of small and micro enterprises. While seeing the advantages of local legal person banks in serving small and micro enterprises, it should also be clear that local legal person banks have deficiencies on the liability side. Their high debt cost is not conducive to better benefiting the real economy and reducing the financing cost of small and micro enterprises while serving small and micro enterprises. The people's Bank of China has continuously transformed two monetary policy tools directly to the real economy, fully considered the difficulties of financing small and micro enterprises, and effectively considered the pain points of local corporate banks supporting small and micro enterprises, which is more conducive to fully mobilize the enthusiasm of financial institutions and promote the financing increment, price reduction and expansion of small and micro enterprises. The Pratt & Whitney small and micro loan support tool is encouraged according to the increment of Pratt & Whitney small and micro loan balance, which not only takes into account the financing needs of original small and micro enterprise loan customers, but also encourages financial institutions to actively market new customers to increase first loan customers. Integrating the credit loan support plan of Pratt & Whitney small and micro enterprises into the management of small re loan of agricultural support, and increasing the amount of small re loan of agricultural support on the existing basis can better indirectly reduce the financing cost of small and micro enterprises by reducing the debt cost of financial institutions under the condition of reducing the interest rate of small re loan of agricultural support. In short, China's economic development is facing triple pressures of shrinking demand, supply shock and weakening expectations. We need to continue to do a good job in the "six stabilities" and "six guarantees", strive to stabilize the macro-economic market, make steady progress in economic work, and keep the economic operation within a reasonable range. Among them, we need to focus on the practical difficulties faced by the operation and development of small and micro enterprises, increase support, and strive to alleviate the financing difficulties and expensive financing of small and micro enterprises. The people's Bank of China adopts a market-oriented approach to continuously convert two monetary policy tools directly to the real economy, which will not only help to improve the support of financial institutions to small and micro enterprises, but also help to improve the sustainability of financial support to small and micro enterprises. (Xinhua News Agency)