Since 2020, the nanjing branch of the people's bank, guided by xi jinping's new-era chinese-style socialist ideology, and guided by the unprecedented challenges and extremely complex economic and financial situation caused by the impact of the new coronary pneumonia epidemic, has been following closely the deployment of the party's central, state and people's bank directorates and provincial and provincial governments. It has responded positively, courageously and proactively to the gradual changes and characteristics of the epidemic prevention and control, economic recovery and development situation. It has been able to take a flexible approach to the moderate and effective nature of its policies and to implement sound monetary policies that provide strong financial support for the province-wide capture of the twin victories, the high-quality development of its economy and the construction of the new jiangsu river, which is known to be rich and rich。
Status of implementation by 2020
(i) unprecedented financial support to the real economy
To respond positively to the impact of the epidemic and to the changing situation, financial institutions throughout the province have stepped up their financial support for the prevention and control of the epidemic, the resumption of work and the steady employment of enterprises. Many of the financial indicators are at the top of the country's record, and financial support for the real economy has increased more than ever。
The first is that total financing is the highest in the country. The increase in the size of social financing was $3. 36 trillion, the second highest in the country, with an increase of $950. 7 billion, or 9. 64 per cent, compared with the previous year. This represents the third largest foreign currency loan in the country throughout the year, with an increase of 42. 43 billion yuan over the same period, of which local legal entities increased by 81. 3 billion yuan over the same period, or 1. 2 times the previous year. At the end of december, the province-wide foreign currency loan balance increased by 15. 9 per cent over the same period, up from 3. 4 percentage points in the country and 1. 2 percentage points in the same period the previous year。
The second is the ninth consecutive year in which debt financing instruments have been issued. Take advantage of the policy and time window and make full use of financial markets, both within and outside the country, to support the development of the bailiwick. A total of 13. 4 trillion yuan in corporate bonds were issued throughout the year, representing a net financing of 47. 5 billion yuan, 2. 19 times the same period the previous year. Of this amount, $858. 9 billion was issued for debt financing instruments, which remained the country's first nine consecutive years after their elimination. The first supply chain instruments in the country, which functioned as paper finance, were in the sioux land and had been fully covered by 13 sedentary municipalities, with approximately one fifth of the country's businesses issuing them. Inducing enterprises to make rational use of the full-calibre cross-border financing policy, the provincial contract for full-calibre cross-border financing is equivalent to 72 billion yuan yuan。
Thirdly, the cost of financing has reached a new low in recent years. Investing in the impact of the lpr reforms, spearheading the realization of the stock floating interest rate loan pricing benchmark “shall be rounded”. (c) work to regulate credit financing charges by financial institutions and to ensure that the costs of integrated financing by enterprises are effectively reduced. In january-december, the province-wide weighted average interest rates for general loans and for enterprise loans were 5. 29 per cent and 4. 74 per cent, respectively, at a low of nearly 10 years and five years, respectively. According to the questionnaire of entrepreneurs of the nanjing branch of the people's bank for the fourth quarter of 2020, only 5. 2 per cent of businesses consider “difficult financing, expensive financing” to be the main problem facing enterprises in the current season, ranking ninth after “high competitive market pressure”, “high operating costs” of “under-orders”, which is down from seven consecutive quarters and lowest in almost three years. The year-round reduction in interest rates for all categories of persons amounts to about rmb 150 billion, of which financial institutions contribute more than rmb 74 billion to businesses as a result of lower financing interest rates。
(ii) positive response with significant results in terms of financial support for firm security of employment
In accordance with the requirements of the general bank of the people's bank's bank's financial support to secure enterprise employment, and taking into account jiangsu's actual situation, various monetary policy instruments have been applied and innovatively, at a hierarchical and horizontal level, to channel credit resources to industries and enterprises affected by the epidemic。
One is the active competition for refinancing and discounting resources from the people's bank. It has actively sought a re-discount of 50 billion yuan and 1 trillion yuan in two instalments of re-financing, with a provincial investment of 17. 1 billion yuan, or nearly 11. 4 per cent of the total, benefiting nearly 189,000 households and an average loan interest rate of 4. 67 per cent. Re-advertise the branch window and focus on re-discounting prices and “two guides”. By the end of december, the province had the highest rate of refinancing and rediscounting of 97. 1 per cent。
Secondly, two straight-to-entity policy instruments lead the country in implementing them. In conjunction with jiangsu's practical efforts, a financial support and job security implementation programme has been developed to promote the strengthening of long-term mechanisms for financial institutions in the form of “gold loans, loans, loans, loans, loans” and, as a result, to take the lead in the formulation of the ten actions for financial support and job security at the provincial level, which will be coordinated by the provincial government, which will transfer them to municipalities throughout the province and to 12 relevant departments, create a sound financial business environment and promote the extension of interest payments and a significant increase in the proportion of loans granted. Between june and december, the province-wide extension for inclusive micro-loans amounted to $28. 2 billion, representing a rate of 64. 05 per cent. Of this amount, 162. 1 billion yuan was extended by local legal entities, representing a rate of 75. 74 per cent, which increased further to 87. 77 per cent in december, the highest in the country. At the end of december, credit was 50. 5 per cent of the increase in local corporate finance institutions across the province, up 33 percentage points from the end of june and ranked among the highest in the country. Jiangsu financial support for secure enterprise employment has been very effective and has been publicized in the front page of the financial times。
Thirdly, financial support for priority areas and vulnerabilities continues to increase. In the spring holiday 2020, the nanjing branch of the people's bank was the first to issue a nationwide circular requiring financial institutions throughout the province to strengthen their financial services and fully support disease prevention and control. There has been a sustained increase in support for micro-credit and “three farmers”, with the province-wide micro-credit and farm-household balance increasing by 43. 2 per cent and 23 per cent, respectively, in late december. Financial support for foreign-trade enterprises has been put in place in 10 articles, “stable foreign trade”, the creation of an export insurance plus refinancing facility, and the launching of the “comprehensive financial assistance for foreign-trade enterprises” initiative, which has provided strong support for a smooth recovery in foreign-trade relations throughout the province. Throughout 2020, there were a cumulative total of 43,000 foreign-trade enterprises, with a 3 per cent increase in net capital inflows throughout the year. Focused on the implementation of initiatives such as “financially aided manufacturing efficiency”, “framework core enterprise finance interface”, “current supply chain finance efficiency”, led financial institutions to increase their support to 13 advanced manufacturing industry clusters across the province. At the end of december, local currency loans and medium- and long-term loans for manufacturing increased by 10. 3 per cent and 42. 5 per cent respectively for the province-wide manufacturing sector, an increase of 7. 5 and 19. 97 percentage points, respectively, over the same period of the previous year. Strongly developing supply chain finance, by the end of 2020, cumulatively generated 4. 19 million up- and down-chain business finance, amounting to $2. 14 trillion。
(iii) responsiveness to prevent significant results from financial risk management
Maintaining bottom-line thinking and promoting the convergence between mechanism 1 and mechanism 2 to ensure accountability, sound sharing mechanisms and a bottom line against systemic regional risks。
The first is the “zero-free” of corporate banking institutions in high-risk agricultural businesses throughout the province. In line with the “stabilization, harmonization, classification and precision” approach, the disposal of high-risk institutions and the abnormally volatile deposits of individual legal entities have been properly managed and the high-risk agricultural establishments throughout the province have been “zero”. The effective functioning of deposit insurance has led to the completion of early corrective goals by nine institutions and the withdrawal of seven from the list of institutions。
Secondly, the regional financial safety net has grown stronger. On-site ratings and special checks of central bank financial institutions are carried out to map the risk profile of financial institutions. The deposit insurance logo was successfully implemented throughout the province, with yangzhou taking the lead in implementing it for national experience. The country has pioneered the exploration of reverse stress testing techniques, and over the past three years 90 per cent of local corporate banks throughout the province have completed stress testing. In order to continuously optimize the financial and ecological environment in the counties, the integrated assessment of the financial and ecological situation has been given high priority by the local party governments and has been communicated to the 13 municipalities。
Thirdly, cross-border financial risk firewalls have a significant impact. Establishment of a mechanism for the analysis of the foreign exchange situation and a mechanism for the analysis of the monitoring of cross-border financial flows, with a view to strengthening the capacity for cross-border financial management and risk prevention. Special inspections of high-risk and high-priority foreign exchange operations are carried out, and violations in the foreign exchange field are severely combated。
(iv) intense progress, with financial reforms breaking out
The integrated promotion of regional financial reform and innovation pilots, innovations in financial reform have evolved in the first instance, with the emergence of a sample of jiangsu and the experience of jiangsu。
The first was an important breakthrough in regional financial reform. Guided the successful approval of the first trans-strait financial reform pilot zone in quinshan, with an additional city at the national level. In-depth implementation of the national strategy for long-triangular integration and innovation-driven national strategy for development has led to the establishment of a pilot financial reform zone in the four joint cities of nanjing. The first regional index of industrial and financial development in thailand was launched as a result of a deep push to change the state of thailand。
The second is efficiency gains from pilot financial innovation. The establishment of a high-quality advance in the msme pilot area and the successful launch of the long-triangular link have now resulted in the deployment of 11 nodes in eight regions, namely shanghai, nanjing and hangzhou, with 4. 57 million upper-chain businesses, and a significant reduction in the information asymmetry between the trans-regional banks. The dnc su canton pilot has been continuously promoted, with a cumulative roll-out of 29,000 test scenes, with core indicators such as the amount of transactions, the number of transactions and the degree of activity of wallets being at the top of the national pilot area. The pilot on the application of financial science and technology has been further advanced and the pilot on the regulation of financial science, technology and innovation has been approved。
Thirdly, financial support for the establishment of ftas has been effective. Actively seeking policy support from the general and general directorates to launch nine pilot foreign exchange innovation operations and five cross-border renminbi innovation pilots in the fta。
(v) strengthened services for sustained optimization of the regional business environment
Further improve the quality of financial services, deepen foreign exchange sector reforms, steadily advance cross-border renminbi operations, support new trade practices, facilitate trade and investment and open up services to the outside world。
The first is that optimizing financial services for the benefit of the people is highlighted. The introduction of a three-year efficiency plan for inclusive rural financial services points to promote rural financial services to the “last 100 metres”. (c) deepening the mobile payment portfolio project, with the province-wide coverage of basic public services and the people's home service site. The list of market subjects with tax performance is screened on the basis of the system for statistical analysis of tax information, which precisely helped 8,600 enterprises to receive credit support。
Secondly, foreign exchange management reforms are deepening. The trade foreign exchange facilitation pilot expansion, with 11 pilot banks running pilot operations of $24,466 million for 132 enterprises, and the jiangsu pilot bank and pilot entrepreneurs were among the highest in the country. The continued release of the capital project facilitation dividend, with $3. 14 billion in provincial operations, has greatly improved the ease of use of funds. The total operation of cross-border funds by transnational corporations has further expanded, with a total of 753 domestic member enterprises; cumulative cross-border revenues and expenditures of $5,088 million were recorded throughout the year, with an internal consolidation of $53 billion, resulting in financial savings of over $10 million。
Thirdly, cross-border renminbi operations have progressed steadily. The initial advantage of the pilot project to facilitate cross-border settlement of the renminbi was that it involved 13. 6 billion yuan in cross-border operations for nearly 300 enterprises, directly reducing the cost of the enterprise and creating more than 200 million yuan in economic benefits. In the first instance to explore new ways of providing enhanced financial support for law-abiding enterprises throughout the country, a “list of law-abiding cross-border renminbi settlement enterprises” was carefully developed, with a total of 2,194 enterprises and 35 billion new letters. Cross-border trade settlements for new trade-oriented businesses have increased rapidly from zero to 20 billion yuan for cross-border electric operators across the province, with a cumulative share of 55,000 micro-exporters。
The way forward
The nanjing branch of the people's bank will fully follow the spirit of the party's 19th plenum, the central economic work conference and the people's bank's working conference. Under the right leadership of the provincial council and the general bank of the government and the people's republic of china, it will adhere to the overall thrust of its quest for progress. It will be based on the new stage of development and will pursue the new concept of development with a view to promoting high-quality development. The main thrust will be to deepen the structural reform of the supply side, with innovation as the fundamental driving force, with a view to providing strong and effective financial support to ensure that the “xiv5” is well established and celebrates the 100th anniversary of the establishment of the party with excellent results。
The first is to promote continued national leadership in total financing. The combination of various monetary policy instruments, the maintenance of reasonable liquidity, the maintenance of social finance growth at a basic pace commensurate with the nominal rate of economic growth in jiangsu province, and the provision of strong financial support for the implementation of “one at the same time”. (c) to promote the multi-channel replenishment of capital by local corporate bodies and to increase their contribution to the smooth growth of credit throughout the province. :: deepening the province's corporate debt needs, optimizing the delivery of debt services and consolidating the country's leading position of direct financing for jiangsu。
The second is to continuously optimize the province-wide credit structure. Organization of a project to improve the financial services capacity of msmes and to promote the establishment of a mechanism for long-lasting loans. (c) the introduction of science and technology finance guidance and the organization of the science, technology and innovation enterprise (sti) financial services promotion initiative to support sti-based enterprise development; and the promotion of green finance through the use of new monetary policy instruments in support of green development. Strengthening financial support for advanced manufacturing and modern services around national strategies, including long-triangular integration and building modern industrial systems. Sound implementation of prudential real estate financial management and promotion of the implementation of centralization of real estate loans。
Third is the precision of monetary policy instruments into the real economy. The subsequent implementation of two instruments of direct economic and monetary policy to the entity should be extended to the extent that they are marketable. (b) refine and innovate existing models with adequate re-credit rediscount policy tools to further improve policy accuracy and responsiveness. Strengthened rediscount support to supply chain enterprises to promote continuous improvement in the overall business credit environment of the supply chain。
Fourth is the consolidation of the decline in the level of real interest rates on loans. Further deepening of lpr reforms and applications, further liberalization of the policy interest rate transfer mechanism, and promotion of a steady reduction in the cost of integrated enterprise finance。
Fifth is the piloting of innovative financial reforms in an integrated manner. Close follow-up of the progress of the kimbei process in thailand, and prepare the pilot experience for the final evaluation in a timely manner. • to promote the orderly promotion of the reform process in kunshan around the priority areas of financial innovation cooperation between the two sides, cross-border renminbi business innovation and financial infrastructure development. Support to regions such as nanjing and no sing yee xing in their efforts to achieve new breakthroughs through local declaration of regional gold pilot projects. Steady progress is being made in the construction of an experimental zone for digital intelligence, and in the sound promotion of the extension of the long triangle. To promote the deepening of the integration of finance and science and technology around the high-quality development goals of digital finance, the piloting of financial science and technology applications and the piloting of financial science, technology and innovation regulation have produced new results。
Sixth is the further promotion of investment trade facilitation. (c) sequencedly advance the expansion of the trade foreign exchange facilitation pilot and promote the bank show information sharing facility pilot. Promoting banks to provide efficient and convenient cross-border settlement services for new trade practices and models. Explore investment policy innovations in support of strategic emerging industries and increase the supply of foreign exchange investment finance to emerging industries and high-tech enterprises. (b) to promote the improvement of the internal institutional mechanisms for the transfer and implementation of foreign exchange policies and the upgrading of the capacity and services of the bank。
