A few days ago, the People's Bank of China announced that on December 5, 2022, it would reduce the deposit reserve ratio of financial institutions by 0.25 percentage points (excluding financial institutions that have implemented a 5% deposit reserve ratio), release a total of about 500 billion yuan of long-term funds, and consolidate the foundation for economic stability. Analysts said that financial regulators and financial institutions have recently introduced many specific measures to further support the real economy, which is conducive to stabilizing employment, prices and expectations, and promoting economic operation to maintain a reasonable range. Strongly protect the macro-economy According to estimates, after this RRR reduction, the weighted average deposit reserve ratio of financial institutions is about 7.8%, which will reduce the capital cost of financial institutions by about 5.6 billion yuan per year, thereby promoting the reduction of the comprehensive financing cost of the real economy. Yi Gang, the governor of the People's Bank of China, said that from the perspective of economic operation effect, China's macro policy strength is more appropriate. It not only strongly supports the stability of the overall macroeconomic situation, but also maintains the basic stability of the price situation in the context of global high inflation, and also takes into account the internal and external balance. "The prudent monetary policy has not only total support, but also structural characteristics. We focus on the supply side structural bottlenecks and difficulties, play the role of structural monetary policy, continue to strengthen financial services in areas such as' agriculture, rural areas and farmers', small and micro enterprises, and private enterprises, and promote inclusive finance 'volume growth, expansion, and price reduction'." Yi Gang said. Yi Gang introduced that since 2018, the central bank has implemented 13 reductions in reserve requirements, the average statutory deposit reserve ratio has dropped from 15% to about 8%, released a total of about 10.8 trillion yuan of long-term liquidity, and the scale of the central bank's balance sheet has basically stabilized between 38 trillion yuan and 40 trillion yuan. By the end of September this year, the balance of inclusive small and micro loans had reached 23 trillion yuan; The number of credit granting accounts was nearly 54 million, four times that at the end of 2017; The weighted average interest rate of the newly issued inclusive small and micro loans in September this year was 4.7%, 1.8 percentage points lower than the same period in 2017. In the opinion of Dong Ximiao, the chief researcher of China Zhaolian Finance, the timely and moderate reduction of RRR is conducive to guiding financial institutions to better help stabilize growth, expand domestic demand, further stabilize market confidence and expectations, reduce residents' consumption burden, and enhance the vitality of the real economy. "In recent years, China's monetary policy has increased its support for the real economy, and maintained a sound tone. In October, China's consumer price index (CPI) rose 2.1% year-on-year, and inflation was moderate and controllable." Dong Ximiao said. Focusing on key areas of service Since this year, many financial institutions have focused on their main responsibilities, played their own characteristics, and provided high-quality services to key areas of the real economy. Some devote themselves to supporting national strategies. Xu Yiding, Vice President of the Agricultural Development Bank of China, introduced that since this year, the Agricultural Development Bank of China has accelerated the implementation of various key tasks. It has invested 2.38 trillion yuan in loans, a net increase of 1.07 trillion yuan, and has effectively played the role of policy banks in cross cycle and counter cycle adjustment. In the future, the Agricultural Development Bank of China will adhere to the functional orientation of a policy bank and fully serve national major strategies such as national food security, poverty alleviation and rural revitalization. Some actively serve people's livelihood. November 25, middle