countries often weigh heavily! we will also raise the required reserve ratio and allow financial institutions to yield 1.5 trillion yuan in interest. we will also take these major measures to stabilize the economy
peng yang zhao bai nan
an executive meeting of the state council, china's cabinet, held on monday, made plans to guide financial institutions to give more reasonable profits to enterprises to help stabilize the basic economic fundamentals, and required faster implementation of the fee reduction policy to reduce the burden on market entities.
how to yield interest? what are the fee reduction policies? czj comb for you one by one.
we will encourage the financial system to yield 1.5 trillion yuan in interest
china's regular session pointed out that the next step is to follow the requirements of the government work report:
first, we must grasp the key to ensuring reasonable interest rates, protect market players, and stabilize the basic disk of the economy. we further promoted a series of policies, including guiding down the interest rates on loans and bonds, issuing loans at preferential interest rates, extending the repayment of principal and interest on loans to small and micro businesses, supporting the issuance of unsecured credit loans to small and micro businesses, and reducing bank charges, to ensure that the financial system could reasonably transfer 1.5 trillion yuan of interest to all kinds of businesses throughout the year.
second, we used a combination of tools such as rrr reduction and refinancing to keep market liquidity reasonably ample, and stepped up efforts to solve financing difficulties and ease the financial pressure on enterprises. the total increase in both rmb loans and private financing exceeded that of the previous year.
third, we should follow market rules and improve policy tools and relevant mechanisms for direct access of funds to enterprises. in accordance with the requirements for controlling the development of some sectors and the expansion of some sectors, we will ensure that the majority of new financial capital flows to the manufacturing sector and the service sector in general, especially small, medium-sized and micro businesses. we will make better use of emergency assistance and timely assistance to prevent funds from running out of direction and idling, and prevent financial risks.
fourth, we will strengthen the capabilities and motivation of financial services smes. we will reasonably replenish the capital of small and medium-sized banks. urge banks to improve the internal assessment incentive mechanism, enhance the weight of inclusive finance in the assessment. we will intensify efforts to write off and dispose of nonperforming loans. it is strictly prohibited to attach unreasonable conditions to loans. we will effectively reduce the actual financing costs of market entities and further reduce the difficulty of loans.
in terms of the financial system, as far as the banks are concerned, the regulatory authorities have repeatedly stated this year that there is room for banks to let their profits go to the real economy. from the first quarter of the bank's net profit and provision coverage, banks to the real economy to yield interest is feasible.
the government work report states that financial institutions and lending enterprises enjoy common prosperity and encourage banks to give up their profits in a reasonable way. the research group of the research bureau of the people's bank of china also published an article stressing that under the circumstances that the real economy faces great difficulties and the absolute amount of bank profits is large, there is certain space for banks to let the real economy benefit.
industry insiders said that financial institutions should give more priority to supporting the recovery and development of the real economy, continue to deepen the reform of lpr, allow banks to spread their profits, push down the real interest rate on loans, and expand the coverage and availability of credit support.
in addition, it should be noted that the regular session stressed the need to grasp the key to reasonable transfer of interests. the so-called reasonable interest transfer means that the interest transfer entity cannot excessively damage the profitability of the bank. according to the banking team of guosen securities research institute, the profit growth of china's banking industry mainly comes from the expansion of scale and lower management cost, which is related to the indirect financing financial market and cheap labor. at the same time, the profits of chinese banks are mainly used to supplement the core tier 1 capital, and excessive pressure on bank profits may bring about greater financial risks.
the team stressed that in addition to reducing the financing cost of enterprises, it is also crucial for banks to support the real economy and maintain the growth of credit scale. even if the financing cost of enterprises falls to a lower level, if the credit scale cannot grow, it will bring more impact to the real economy.
we accelerated the implementation of the fee reduction policy
reduce the burden on market entities
china's regular session required that the following steps should be taken to ensure employment and livelihood of the people:
first, the set measures to reduce fees to say to do, implement in place. by extending to the end of the year the policy of reducing the electricity price for industry and commerce by 5%, exempting airlines from the civil aviation development fund and the port construction fee for import and export cargo, halving the collection of the ship oil pollution damage compensation fund, and reducing the average broadband and dedicated line charges by 15%, together with the fee reduction measures in the first half of the year, the annual burden of enterprises has been reduced by more than 310 billion yuan.
second, we will resolutely stop non-compliant fees. it is strictly prohibited to collect "excessive taxes", illegally collect tax fees and increase unreasonable burden of market subjects in the name of clearing up and paying up. enterprises should be firmly implemented of the cancelled, suspended, exempted and reduced fees and fees fund items.
third, we will deepen reform to strengthen regulation and services and create a market-based and law-based international business environment. on the basis of special treatment of charges in key areas such as import and export links, enterprise financing, public utilities, logistics, and intermediary services related to administrative examination and approval, we will improve the system and mechanism to remove the soil of arbitrary charges from the system.
in the implementation of the fee reduction policy, since this year, various departments and units concerned have issued a number of fee reduction policies, which have played a positive role in assisting enterprises. for example, in supporting the resumption of work and production, we will periodically reduce or exempt the occupational pension, unemployment, and industrial and commercial insurance of individual industrial and commercial households that are insured by units, periodically reduce the payment of basic medical insurance for workers and workers, and encourage all localities to support the reduction or exemption of rental housing for individual industrial and commercial households through the reduction or exemption of urban land use tax.
the government work report also mentioned a number of policies related to the reduction of fees, including this year to continue to implement the system of reducing enterprise pension insurance rates; earlier, the government introduced a fee reduction policy that expires before june, including the exemption of pension, unemployment and work-related injury insurance contributions from small and medium-sized enterprises. funds for civil aviation development and port construction fees will be reduced or exempted until the end of this year.
on resolutely put a stop to do not charge of compliance, the state administration of taxation, tax authorities at all levels will implement the preferential tax policy, implement the principle of organization in accordance with the income included in the annual tax law enforcement supervision focus, continue to intensify supervision, focus on line checking "overdo taxes" and so on is not in conformity with the "six steady" "six protect" job requirements. problems discovered in supervision and inspection should be corrected without any ambiguity and resolutely, and improvements should be made based on one example to prevent problems from rebounding. units and individuals that fail to implement preferential tax policies or violate the principle of organizing income according to law, thus causing adverse effects, shall be held to account and dealt with in a circular manner in accordance with relevant regulations.
in terms of creating a market-oriented and legalized international business environment, the regulations on optimizing the business environment and the regulations on the implementation of the law of the people's republic of china on foreign investment have come into effect since january 1, 2020.
in 2018 and 2019, china moved up 32 and 15 places respectively to 31st place in the global ranking of ease of doing business, making it one of the top 10 economies in the world with the greatest improvement in the ease of doing business for two consecutive years.
source: sina finance