The working meeting circled the central bank’s seven major priorities for 2020, including the first detailed plan for the development of a macroprudential management framework, which will focus on strengthening the research and development and application of fintech, and propose to continue to steadily advance the development of legal digital currency. Further expand the global legal entity identification code (LEI) in China’s application field.
The 2020 Chinese National Bank Working Conference was held in Beijing from January 2 to 3. Guided by Xi Jinping’s thought of socialism with Chinese characteristics in the new era, the meeting will further study and implement the spirit of the Fourth Plenary Session of the 19th CPC Central Committee and the Central Economic Work Conference, summarize the main work in 2019, analyze the current economic and financial situation and deploy key work in 2020. People’s Bank president Yi Gang and party secretary Guo Shuqing attended the meeting and spoke. Chen Yulu, Vice President of the People’s Bank of China, Vice President Chen Yulu, Pan Gongsheng, Fan Yifei, Zhu Hexin, Liu Guoqiang, head of the discipline inspection and supervision group of the National Supervision Commission of the Central Commission for Discipline Inspection in Chinese, and Xu Jiaai, member of the Party Committee of the People’s Bank of China, attended the meeting and put forward specific requirements for the work in the field of responsibility.
The meeting held that in 2019, under the strong leadership of the CPC Central Committee and the State Council, and in the face of the complex situation of a marked rise in domestic and foreign risk challenges, the People’s Bank of China adheres to a sound monetary policy, resolutely fights against major financial risks, continuously deepens structural reforms on the financial supply side, continuously improves financial management and services, and does not forget its initial intentions. Bearing in mind the mission, the courage to assume, really hard work, the work has achieved remarkable results.
First, the targeted effectiveness of monetary policy has been further enhanced. In response to the increasing downward pressure on the economy, monetary policy highlighted counter-cyclical adjustment, three times to reduce the reserve requirement ratio of financial institutions, the creation of central bank bill swap tools to support banks to issue sustainable debt supplementary capital, improve the ability of bank loans to invest, flexible use of medium-term lending facilities, standing lending facilities and open market operations and other monetary policy tools, Keep the banking system reasonably liquid. The growth rate of M2 and social financing in the broad money supply in the whole year is basically matched by the nominal growth rate of GDP. At the same time, pay attention to the reform method to ease the transmission of monetary policy, reform and improve the loan market quotation rate (LPR) formation mechanism, break the hidden floor of loan interest rate, do everything possible to reduce the cost of corporate financing. We will further enhance the flexibility of the RMB exchange rate and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
Second, key progress has been made in preventing and resolving major financial risks. The People’s Bank of China earnestly fulfills the duties of the Office of the Finance Commission and takes the lead in implementing a course of action to prevent and resolve major financial risks. Through efforts, the macro-leverage rate has been effectively curbed, the shadow bank governance effect is obvious, the risk disposal of key financial institutions has made a major breakthrough, the external impact risk has been effectively addressed, the bond default disposal mechanism has been continuously improved, and the Financial Risk of the Internet has been comprehensively managed. In particular, the decisive takeover of the chartered bank in accordance with the law, in the maximum extent to protect the legitimate rights and interests of depositors and customers at the same time, resolutely broke the rigid payment, serious market discipline, promote the financial market credit layering, promote the reasonable pricing of market risk. At the same time, we will strengthen the construction of long-term mechanisms, speed up the replenishment of macro-prudential policy frameworks such as foreign debt and real estate finance, as well as the system of supervision of financial holding companies and overall financial infrastructure supervision.
Third, financial support for the real economy has been increasing. Promote financial institutions to support key areas, major projects and important construction projects under construction, and promote high-quality development of manufacturing. Financial precision and poverty alleviation have achieved remarkable results. Rural revitalization financial services continue to improve, “two-right” mortgage pilot effective lying. Further alleviate the financing difficulties of small micro-private enterprises, continue to promote the formation of “several lifting” policy, innovative use of a variety of monetary policy tools, give full play to the role of private enterprise bond financing support tools, increase the financing support of small micro-enterpriseaccounts receivable financing, innovation and improvement of small micro-enterprise credit services. Through the joint efforts of all parties, the financing of small microenterprises showed a good trend of “volume increase, face expansion, price reduction”, over-fulfilling the policy goal of increasing loans of small microenterprises of large state-owned commercial banks by more than 30% in 2019 and reducing the comprehensive cost of credit of small micro-enterprises by 1 percentage point.
Fourth, the deepening of financial reform and opening up. More than 30 opening measures were announced, explicitly bringing forward the cancellation of foreign holdings in securities, funds, futures and personal insurance to 2020. Completely remove the limit on the investment quota of qualified foreign investors. Foreign institutions are allowed to carry out inter-bank market bond underwriting and rating business. 12 measures to further promote cross-border trade and investment facilitation. Remove the pilot countries and regions of RMB qualified foreign institutional investors. Increase the amount of RMB remittance sending by individuals in Macao. Expand the number of participating institutions in the RMB cross-border payment system. Promote the connectivity of bond market infrastructure. Actively do a good job in financial support for Hainan Free Trade Pilot Zone and free trade port, Guangdong, Hong Kong and Macao Greater Bay Area, Yangtze River Delta high-quality integrated development and other regional financial reform work. International and regional financial cooperation continues to deepen. We will play the role of the G20 platform to strengthen international macroeconomic and financial policy coordination and safeguard multilateral rules and institutions. Promote the implementation of the outcome of the second Belt and Road International Cooperation Summit.
Fifth, the level of financial services and management continues to improve. We will earnestly fulfill the important legislative responsibilities of coordinating the financial industry and raise the level of administration according to law. The comprehensive statistical work of the financial industry is progressing smoothly, and the financial basic data center is established as scheduled. The level of research on basic major issues of the central bank has steadily increased. The construction of financial governance of modern central banks and the construction of healthy mechanisms for the balance sheet of central banks have been deepened. Completely cancel the administrative license for enterprises to open bank accounts. Mobile payment convenience project to the depth of development. Complete the full centralized depository of the payment agency’s customer reserve. The global legal person identification code (LEI) has significantly increased the amount of code assigned to the financial science and technology development plan, and the pilot of fintech application was launched. Successfully issued the 2019 edition of RMB and the 70th anniversary of the founding of New China. The development of statutory digital currency is progressing well. Further standardize the management of large amounts of cash. Optimize the treasury withdrawal process to ensure that tax reduction policy dividends are implemented in small and micro enterprises. The introduction of the temporary measures for the management of the credit rating industry, in Beijing, Shanghai to carry out the unified registration and inquiry of movable property guarantees, to promote China’s business environment world ranking greatly improved. China’s mutual assessment report on anti-money laundering and anti-terrorist financing was considered by the plenary of the Financial Action Task Force. We will establish a coordination mechanism for the protection of financial consumption rights and interests, and further standardize financial marketing publicity. System-wide internal audit, counsellor research, security, retired cadres services, logistics support and other work achieved new results.
The Shanghai headquarters of the People’s Bank of China, branches, enterprises and institutions directly under the authority and related units to play a solid role in the implementation of financial services real economy policies, and continuously improve the financial management and financial services effectiveness, effectively safeguard the financial stability of the jurisdiction, and strongly support the work of the head office and the development of the local financial industry.
It was pointed out that in 2019, the People’s Bank of China has achieved remarkable results in comprehensively and strictly governing the Party, and the party style throughout the system has continued to improve. First, we should strengthen the Party’s political construction around practicing “two maintenances”. The Party Committee of the “four consciousnesses” and the enhancement of the “four self-confidences” have been strengthened, and the spirit of nailing is firmly grasping the important instructions of General Secretary Xi Jinping to give instructions on the implementation of the spirit. We will continue to carry out political discipline and discipline learning and education, conscientiously implement democratic centralism, and strictly implement the reporting system for major matters. We will earnestly implement the ideological responsibility system for work and enhance the spirit of struggle and the sense of struggle. Second, through a solid development of “don’t forget the first heart, keep in mind the mission” theme of education to further strengthen the ideal belief. System-wide Party organizations and Party members and cadres have further deepened their understanding of the Party’s initial mission, deepened their understanding of the essence of Xi Jinping’s thought of socialism with Chinese characteristics in the new era, fully recognized the significant advantages of the socialist system with Chinese characteristics and the system of national governance, and further enhanced the “four self-confidences”. Third, the role as a positive initiative significantly enhanced. System-wide conscious implementation of the new mission assigned by the CPC Central Committee, better play the role of financial management coordination, take the lead in the overall grasp, effectively assume the statutory responsibility to prevent and resolve systemic financial risks, maintain financial stability, speed up the improvement of the macro-prudential policy framework, complement the system short board. Fourth, the problem of solving the problem of serving the people is realized. The Party Committee adheres to the people-centered development idea and takes the lead in solving difficult problems in serving the people. In planning work, firmly grasp the new development concept to promote development, focus on solving the problems of inadequate imbalances. Fifth, the internal system construction and organizational construction is constantly improved. We will vigorously promote the development of the Party’s construction norms at all levels of the system, and formulate guidance on strengthening political construction in the People’s Bank of China system, a reporting system for major matters, a “great supervision” mechanism, and measures for inspection work. We will improve the methods of evaluating and evaluating the selection and appointment of cadres, and improve the political ability and leadership level of leading cadres. Sixth, the style of construction to see new effects. We will continue to promote formalism, bureaucracy, special rectification, solid lying warning education. We will strictly implement the spirit of the eight provisions of the Central People’s Government and earnestly implement the ten bans imposed by the People’s Bank of China. Seventh, the supervision of discipline and accountability and the fight against corruption have been further strengthened. Party committees at all levels clearly support the placement of discipline inspection and supervision units and discipline committees at all levels to perform their duties in accordance with the rules and regulations, and work together and efficiently implement the “two responsibilities” of the Party in a comprehensive and strict manner. Resolutely rectify corruption in the financial field, and strive to be ahead and lead by example.
With regard to the work in 2020, the meeting called on the People’s Bank of China system to take Xi Jinping’s new era of socialism with Chinese characteristics as a guide, fully implement the spirit of the Fourth Plenary Session of the 19th CPC Central Committee and the Central Economic Work Conference, closely follow the task of building a well-off society in an all-round way and the “13th Five-Year Plan” to close the officials, and adhere to the overall tone of steady progress, Adhere to the new development concept, adhere to the supply-side structural reform as the main line, implement a sound monetary policy, resolutely win the battle against the prevention and resolution of major financial risks, deepen financial reform and opening up, do a good job of “six stability” in an all-round way, and comprehensively promote steady growth, promote reform, adjust the structure, benefit people’s livelihood, prevent risks and maintain stability. To create a good monetary and financial environment for high-quality economic development.
First, to maintain a prudent monetary policy flexible and moderate. We will strengthen counter-cyclical adjustment, maintain reasonable liquidity and abundant liquidity, and promote the growth of monetary credit and social financing scale to adapt to economic development. We will continue to deepen the reform of interest rate marketization and improve the rate transmission mechanism for quotation rates in the loan market. We will continue to promote banks to replenish their capital through various channels, including through the issuance of sustainable debt. We will continue to play the decisive role of the market in the formation of exchange rates and keep the RMB exchange rate basically stable at a reasonable and balanced level.
Second, resolutely win the battle against the prevention and resolution of major financial risks. Clarify the boundaries of the duties of all parties, compact the responsibilities of all parties, compact the principal responsibility of financial institutions, the responsibility of local government territorial risk disposal and the first responsibility for stability, the responsibility of supervision by financial regulatory departments and the responsibility of the Last Lenders of the People’s Bank of China, and resolutely guard against moral hazards. Establish and improve the mechanism of recovery and disposal of financial institutions, the mechanism of loss sharing and the mechanism of incentive and restraint. Highlight the key points, continue to do a good job in accordance with the law to the key financial institutions risk disposal work. We will continue to carry out special treatment of Internet financial risks, basically resolve the risks of Internet financial stock, and establish and improve the long-term mechanism of supervision. We will speed up the establishment of a long-term management mechanism for real estate finance. Further play the role of deposit insurance institutions in risk disposal. Speed up the establishment of local coordination mechanisms for the offices of the Financial Commission.
The third is to alleviate the financing difficulties of small micro-enterprises to raise expensive problems, increase financial support supply-side structural reform efforts. Improve the incentive mechanism for loan assessment of small and small enterprises, implement the system of due diligence of credit, and create a policy environment that dares to lend loans. We will promote the improvement of micro-enterprise financing by exerting multi-sectoral efforts and using policy tools such as targeted de-regulation, re-discounting of re-loans, macro-prudential assessment and credit management. Increased credit support for focus areas and weaknesses. Focus on deep poverty-stricken areas, improve the financial support industry-driven anti-poverty mechanism, help to win the precision fight against poverty.
Fourth, speed up the improvement of the macro-prudential management framework. Preparation of macroprudential policy guidelines. Build a macro-prudential stress testing system. We will speed up the establishment and improvement of a macroprudential management mechanism for cross-border financial flows for the integration of foreign currencies. Gradually expand the area of macroprudential policy coverage. To organize and implement systematic bank assessment, and promote the introduction of the implementation of financial holding company supervision and management measures.
Fifth, we should continue to deepen financial reform and opening up. Deepen the reform of financial markets and financial institutions. We will actively develop the bond market and continue to promote the connectivity of the bond market infrastructure. Strengthen the overall supervision and construction planning of financial infrastructure. We will deepen the reform of small and medium-sized banks and agricultural credit unions, and further improve the governance structure of policy banks. We will actively and steadily promote the internationalization of the RMB. We will further promote the reform of the foreign exchange management system and support the FREE Trade Pilot Zone, Free Trade Port and other foreign exchange management reform. Improve the two-in-one regulatory framework for “macroprudential and micro-regulation” of cross-border capital flows.
Sixth, strengthen the research and development and application of fintech. We will implement the development plan for financial science and technology, establish and improve the basic rules system for the supervision of financial science and technology, and do a good job in the pilot work of financial science and technology innovation supervision. We will continue to steadily advance the development of legal digital currency. Further expand the global legal entity identification code (LEI) in China’s application field.
Seventh, improve the level of financial services and financial management. We will comprehensively promote the construction of financial laws, regulations and rules. Strengthen the monitoring and analysis of financial statistics, and build a financial statistical platform and financial foundation database that is in line with the development direction of big data. We should deepen regional financial reform pilot reforms such as science and technology finance, green finance, inclusive finance, financial opening innovation and coordinated regional development. We will promote the modernization of the financial governance of the central bank. Explore the establishment of the payment industry overall supervision, the implementation of territorial supervision responsibilities mechanism, promote mobile payment people-to-people projects continue to develop in depth, fully cooperate in the fight against the control of new illegal and criminal network stakes and cross-border network gambling activities. Heavy-handedly combat counterfeit currency illegal and criminal activities. We will accelerate the development of high-quality treasury and handle budget revenue and expenditure business in a timely and accurate manner. We will steadily promote the online upgrade of the second-generation credit system, and strengthen the information security management and personal privacy protection of individual credit. We will further strengthen the construction of anti-money laundering coordination mechanisms and continue to strengthen anti-money laundering supervision. We will improve the mechanism for the coordination of the protection of financial consumption rights and interests and coordinate the promotion of inclusive finance.
We will further improve the internal management level of financial management, internal audit, security, retired cadres, and logistics support. Further strengthen the protection of the duties of the counsellors.
The meeting stressed that in order to do all the work well in 2020, we must adhere to the Party’s centralized and unified leadership of financial work, firmly establish the “four consciousnesses”, constantly strengthen the “four self-confidences”, resolutely achieve “two maintenances”, and always maintain a high degree of consistency with the CPC Central Committee with Comrade Xi Jinping as its core, so as to provide strong political guarantees for the full performance of its duties. First, we should always put political construction in a more prominent position, make it a major political task to carry out the spirit of the important instructions of General Secretary Xi Jinping and the decision-making and deployment of the PARTY Central Committee, explore the construction of a modern central bank system, further deepen the structural reform of the financial supply side, and resolutely fight hard to prevent and resolve major financial risks. Try to get ahead of systemic financial risks. Adhere to the administration according to law and build a central bank governed by the rule of law. Strive to walk in the “let the central peace of mind, let the people satisfied with the model organs” pilot to create the forefront. Second, it is necessary to consolidate and expand the educational achievements of the theme, focus on the theme of education to examine the problems found, the establishment of rectification accounts, one to the end. Third, we should constantly strengthen the people’s bank’s understanding of “first of all political organs”, strengthen the political construction of the leadership team, select the superior and strong leadership team at all levels, find the training and selection of outstanding young cadres, do a good job of the Communist Youth League and youth work, and enhance the ability of cadres to adapt to the development needs of modern central banks. Fourth, we should further improve the ideological methods and work style, adhere to the ideological line of seeking truth from facts, arm the mind with the Party’s innovative theory, and do a good job of ideological work. Resolutely put an end to all forms of formalism, bureaucracy, and effectively improve the way of work, to the people and enterprises and institutions to “step forward” initiative services, with local and departmental to maintain closer contact and communication. Fifth, we should push ahead with greater efforts to strictly govern the Party in an all-round way and resolutely implement the “two responsibilities”. To manage the Party as the most fundamental responsibility to strictly, stand up, dare to grasp the management, strict control. We should dare to shine a sword and constantly increase anti-corruption efforts in the financial field. Deepen the specimen and cure, with good “four forms”, one to promote dare not corrupt can not corrupt do not want to corrupt. We will strengthen warning education and ideological education, and earnestly learn the lessons of major corruption cases. We should continue to improve the system of inspection work mechanism, unswervingly deepen political inspection, and further promote discipline inspection, internal and external inspection, audit and special inspection to form a long-term supervision mechanism.
The meeting stressed that the task of doing a good job in finance in 2020 is arduous, the responsibility is great and the mission is glorious. The cadres and workers of the People’s Bank of China system should unite more closely around the Party Central Committee with Comrade Xi Jinping as its core, bear in mind the initial intention and mission of financial work, practice the “two maintenances” with practical actions, continuously improve their style of work, enhance their confidence in victory, act positively, dare to assume and take up important tasks, and ensure that the CPC Central Committee, The State Council on the financial work of the various deployments in place, in order to win a comprehensive building of a well-off society to make greater contributions!
Members of the leadership team of the Foreign Exchange Bureau, chief accountant, chief economist, members of the leadership team of the Shanghai headquarters of the People’s Bank of China, sub-provincial city center branches above the branch are mainly responsible for comrades, the head office of the departments, party committee departments, the Shanghai headquarters departments are mainly responsible for comrades, stationed in the discipline inspection and supervision team responsible for comrades, the People’s Bank of China, the head of the inspection team, All enterprises and institutions, relevant units, and foreign-based institutions are mainly responsible for comrades to attend the meeting. The relevant comrades of the Central Organization Department, the Office of the Central Committee of Finance and Economics, the General Office of the State Council and the Audit Office were invited to attend the meeting.
Here’s a comparison of the priorities raised at the 2019 and 2020 central bank working sessions:
21 Comprehensive from the central bank website, Shanghai Securities News