9th morning
1 Press Conference of the First Session of the 13th National People's Congress
People's Bank of China Governor Zhou Xiaochuan
Deputy Gang
Deputy Gang
Deputy Gang
Deputy Gang and State Administration of Foreign Exchange Director Pan Gongsheng
Answer questions about "financial reform and development"
Answer questions from Chinese and foreign reporters
In this press conference full of practical information
Xiaoqing captured many professional economic terms
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Shadow Banks (Shadow Banks)
institutions or businesses outside the banking regulatory system.
Definition
Shadow banking refers to a credit intermediary system (including various related institutions and business activities) that are free from the banking regulatory system and may cause systemic risks and regulatory arbitrage issues. The three most important forms of "shadow banking" exist: bank wealth management products, non-bank financial institution loan products and private lending.
function
(1) increases the credit supply of society without changing the currency stock.
(2) further strengthens the freedom of banks to obtain funds. Re-lending has gradually been replaced by multiple other channels. The role of re-lending on bank liquidity has been weakened, promoting the development of multi-level capital markets and improving and diversifying the risks of the banking system.
The central bank said that
One of the indicators to observe that China's debt has entered the stage of stabilizing leverage is that the central bank and regulatory agencies have jointly compressed the "shadow banking" business. While compressing the "shadow banking" business, some "shadow banking" may return to the on-balance sheet business of the banking system.
mark to market
settlement department calculates and checks the balance of margin account after the daily market closure. By issuing additional margin notices in a timely manner, the settlement system for maintaining the margin balance above a certain level and preventing the occurrence of liabilities.
Definition
The so-called daily market-oriented system, that is, the daily debt-free system and daily settlement system, means that after each trading day, the exchange settlement department first calculates the settlement price of each futures contract on the day, calculates the profits and losses of each transaction of each member, thereby adjusting the member's margin account, crediting the profits and crediting the losses to the account's debit.
function
(1) The daily market-oriented system settles the transactions and positions of all accounts according to contracts of different varieties and months, ensuring that the profits and losses of each trading account can be reflected in a timely, specific and true manner, and provides a basis for timely adjustment of account funds and controlling risks. (2) Since this system stipulates that one trading day is the longest settlement cycle, in one trading day, the profits and losses of all transactions are required to be settled in a timely manner to ensure that the liabilities in the member margin account do not exceed one day, so market risks can be controlled within a relatively smallest time unit in the entire transaction process.
The central bank said that
In foreign exchange reserves, many projects are calculated according to the current accounting standards, which are called "mark to market". The bonds, stocks and other assets invested in foreign exchange reserves will change in value with market changes.
SDR ( SDR )
SDR is an international reserve asset created by IMF in 1969 to make up for the insufficient official reserves of member countries.
Definition
The value of the SDR is currently determined based on a currency basket composed of five major currencies (USD, Euro, RMB, Japan and British Pound). China's RMB has been added to the basket as the fifth currency starting October 1, 2016. SDRs can be exchanged for freely available currency.
function
SDR is not a currency, nor is it a claim against the IMF, but a potential claim against the freely available currency of the IMF member states.
holders of SDRs can exchange their SDRs in two ways: one is through voluntary exchange arrangements between member states; the other is that the IMF designates members with strong external conditions to purchase SDRs from members with weak external conditions in freely available currency. In addition to being a supplementary reserve asset, SDR is also an accounting unit of the IMF and some other international organizations.
The central bank said
RMB has now joined the SDR basket of the International Monetary Fund, and the main steps should be done. To what extent market participants trade in RMB, this is a relatively long process, and no one can force anyone, they are voluntarily considering it according to their understanding. Therefore, the future will be a gradual process.
China is steadily and gradually promoting the convertibility of capital projects. After the convertibility, there are still some restrictions on individual aspects, and these restrictions will be gradually and orderly. After the liberalization, the internationalization of the RMB can further move forward.
M2 ( broad currency )
consists of cash circulating outside the banking system plus current deposits (M1), plus time deposits, savings deposits, etc.
Definition
M2 is the boss of the currency family, including all forms of currency that may become real purchasing power. Since M2 is of great significance to studying the overall situation of currency circulation, in recent years, many countries have begun to shift their regulatory targets of money supply to M2.
money supply " family " member
In order to calculate and grasp the money supply in circulation and to more effectively regulate the money supply, the International Monetary Fund divides the money supply family into "three brothers" according to the size of the currency coverage and liquidity:
youngest M0, also known as "cash", refers to cash circulating outside the banking system, that is, cash in the hands of residents and enterprises. Although Mo is the old man of the currency family, it is the smartest, has the strongest liquidity and has the strongest purchasing power.
The second M1, also known as "narrow currency", consists of cash (M0) circulating outside the banking system and bank demand deposits. M1 represents the real purchasing power in a country's economy and has the most extensive and direct impact on social and economic life.
The central bank said
If the growth rate of M2 and nominal GDP is basically the same, from the perspective of broad money supply, it is neither loose nor tight. Nominal GDP is what we are talking about now, as the actual GDP plus the GDP deflating index, that is, GDP adjusted by price. If M2 is greater than the growth rate of nominal GDP, the monetary policy will be a little looser, and if it is lower, it will be a little tighter. Observation is like this. However, the assumption is that the structure of the financial market and the structure of financial products have not changed much.
"Double Peak" Supervision Model
merges financial supervision with the central bank, and the Prudential Supervision Bureau, as an internal department of the central bank and the behavior supervision bureau, conducts "Double Peak" supervision.
Interpretation
After the UK financial crisis, it completely denied its practice of separating financial supervision from the central bank in 1997, transforming the Bank of England into a "super central bank" that combines monetary policy, macro-prudential and micro-prudential, and building a "double peak" regulatory model for the Prudential Supervision Bureau as an internal department of the central bank and the Behavior Supervision Bureau are responsible for micro-prudential and behavioral supervision respectively.
function
(1) While adhering to the concept of "two peaks", it also takes into account the actual constraints of regulatory resources and regulatory costs, and implements de facto unified supervision for small and medium-sized financial institutions
(2) Strengthen coordination between "two peaks" through legislation, signing regulatory memorandums, and cross-appointment of major leaders.
The central bank said that
Our institutional reform is mainly based on China's national conditions, and also refers to the settings of various international financial regulatory agencies. During the reference process, the so-called "double peak" supervision system was also studied. However, we currently think that we still need to observe for a period of time, not that we must adopt the "double peak" supervision standard.
▎Reference: MBA Think Tank China Economic Net Hefei Branch of the People's Bank of China IMF Hebei Daily
▎Editor: Ma Shan Zhang Linglin (internship)
▎Review and release: Chen Hua Zeng Fanhua Chen Chen
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