Monetary policy tools refer to the strategic means used by the central bank to achieve monetary policy objectives. The policy tools of the central bank include general tools, selective tools and auxiliary tools.
(a) General policy tools
1, statutory deposit reserve ratio policy
The statutory deposit reserve ratio refers to the ratio of the deposits deposited by the deposit currency bank in the central bank according to law to the deposits absorbed by it.
The real effect of the statutory deposit reserve ratio policy is that it can expand the credit of deposit money banks and adjust the money multiplier. Because there is a multiplier relationship between the credit expansion ability of the deposit currency bank and the base currency invested by the central bank, the multiplier is inversely proportional to the statutory deposit reserve ratio. Therefore, if the central bank adopts a tightening policy and raises the statutory deposit reserve ratio, it will limit the credit expansion ability of deposit money banks, reduce the money multiplier, and eventually shrink the money supply and credit quantity, and vice versa.
However, there are three defects in the statutory deposit reserve policy: first, when the central bank adjusts the statutory deposit reserve ratio, the deposit money bank can change its excess deposit reserve in the central bank, which will reverse the role of the statutory deposit reserve ratio policy; Second, the statutory deposit reserve ratio has a great influence on the currency multiplier and is often regarded as a "fierce medicine"; Third, the influence of adjusting the statutory deposit reserve ratio on the money supply and credit amount should be realized through the deposits and loans of deposit money banks, which has a slow effect and a long time lag. Therefore, the statutory deposit reserve policy is often used as an automatic stability mechanism of monetary policy, rather than as a regular policy tool for timely adjustment.
2. rediscount policy
Re-discount means that the deposit currency bank requests the central bank to discount the commercial bills discounted by customers in order to obtain the credit support of the central bank. Rediscount policy in a broad sense not only refers to the rediscount business of the central bank, but also includes other loan business provided by the central bank to deposit banks.
The basic content of rediscount policy is that the central bank adjusts the rediscount interest rate according to the policy needs (including other benchmark interest rates held by the central bank, such as its loan interest rate to deposit money banks, etc. ). When the central bank raises the rediscount rate, the cost of borrowing money from the deposit currency bank rises, and the base currency shrinks, and vice versa. Compared with the statutory deposit reserve ratio tool, the rediscount tool is relatively more flexible and less powerful. However, the initiative of rediscount policy is in the hands of the deposit money bank, because it is only one of the ways for the deposit money bank to obtain credit support by asking the central bank to discount bills, and there are other financing methods such as selling securities and issuing certificates of deposit. Therefore, whether the central bank's rediscount policy can achieve the expected effect depends on whether the deposit money banks actively cooperate.
3. Open market business
The business activities of the central bank, such as publicly buying and selling bonds, are the open market business of the central bank. The central bank conducts securities trading activities in the open market with the purpose of regulating the base currency, thus affecting the money supply and market interest rate.
Open market business is a flexible financial control tool. Compared with the statutory deposit reserve policy, the open market operation policy is more flexible and superior: first, the central bank can use the open market business to influence the reserve of deposit money banks, thus directly affecting the money supply; Second, the open market business enables the central bank to conduct regular and continuous operations at any time according to the changes in the financial market; Third, through open market business, the central bank can take the initiative to attack; Fourth, because the scale and direction of open market business can be flexibly arranged, the central bank may use it to fine-tune the money supply. But its limitations are also obvious: first, the financial market must be not only national, but also quite independent, and the types of securities available for operation must be complete and reach the necessary scale; Second, it must be coordinated with other monetary policy tools. For example, if there is no statutory reserve system, this tool will not work.
Selective and complementary tools
The three traditional monetary policies all belong to the regulation of the total amount of money, which affects the whole macro-economy. In addition to these general policy tools, we can also selectively adjust and influence credit in some special areas. These include consumer credit control, securities market credit control, preferential interest rate, prepaid import deposit and so on.
Consumer credit control means that the central bank controls the sales and financing of various durable consumer goods except real estate. The main contents include the minimum down payment for purchasing durable consumer goods by stages, the longest repayment period and the types of durable consumer goods used.
Credit control in the securities market means that the central bank restricts all kinds of loans related to securities trading in order to limit excessive speculation. For example, a certain percentage of securities margin can be stipulated and adjusted at any time according to the situation of the securities market.
(3) Direct credit control
Direct credit control means that the central bank directly controls the credit activities of financial institutions, especially deposit money banks, qualitatively and quantitatively through administrative orders or other means. Its means include interest rate ceiling, credit line, liquidity ratio and direct intervention. Among them, setting the maximum and minimum interest rate limits for deposits and loans is the most commonly used direct credit control tool, such as the Q regulation of the United States before 1980.
(d) indirect credit guidance
Indirect credit guidance means that the central bank indirectly influences the credit creation of deposit money banks through moral advice and window guidance.
Moral advice means that the central bank often issues notices or instructions to deposit money with deposit banks and other financial institutions, or interviews with the heads of financial institutions, advising them to abide by government policies and take corresponding measures to implement them automatically.
Window guidance means that the central bank puts forward suggestions on credit increase or decrease to deposit money banks according to new situations and new problems in economic operation such as industrial market, price trend and financial market trend. If the deposit currency bank does not accept it, the central bank will take necessary measures, such as reducing the loan amount and even taking sanctions such as stopping providing credit. Although window guidance is not legally binding, its influence is often greater.
The advantage of indirect credit guidance is flexibility, but in order to be effective, the central bank must have a high position in the financial system and have sufficient legal rights and means to control credit.
[Edit this paragraph] VII. China's Monetary Policy Tool
(1) Open market business
In most developed countries, open market operation is the main monetary policy tool for the central bank to control the base currency and regulate market liquidity. The central bank conducts securities and foreign exchange transactions with designated dealers to achieve the purpose of monetary policy regulation. China's open market operation includes RMB operation and foreign exchange operation. The foreign exchange open market operation 1994 was launched in March, and the RMB open market operation 1998 resumed trading on May 26th, with a gradually expanding scale. Since 1999, open market operation has become an important tool for the daily operation of monetary policy of the People's Bank of China, which has played an active role in regulating the money supply, regulating the liquidity level of commercial banks and guiding the interest rate trend in the money market.
From 1998, the People's Bank of China began to establish a first-class dealer system for open market business, and selected a number of commercial banks that can undertake large-value bond transactions as trading objects for open market business. At present, the primary dealers of open market business include 40 commercial banks. These dealers can use government bonds and policy financial bonds as trading tools to conduct open market business with the People's Bank of China. In terms of transaction types, China People's Bank's open market bond transactions mainly include repurchase transactions, spot bond transactions and issuance of central bank bills. Among them, repurchase transactions are divided into positive repurchase and reverse repurchase. Repurchase refers to the trading behavior that the People's Bank of China sells securities to primary dealers and agrees to repurchase securities on a specific date in the future. Repurchase refers to the operation of the central bank to recover liquidity from the market, and it refers to the operation of the central bank to put liquidity into the market when it expires. Reverse repurchase means that the People's Bank of China buys securities from primary dealers and agrees to sell the securities to primary dealers on a specific date in the future. Reverse repurchase refers to the operation of the central bank to put liquidity into the market, and it refers to the operation of the central bank to recover liquidity from the market when it expires. There are two kinds of spot trading: spot buyout and spot selling. The former is that the central bank directly buys bonds from the secondary market and puts in the base currency at one time; The latter is that the central bank directly sells bonds and withdraws the base currency at one time. Central bank bills are short-term bonds issued by the People's Bank of China. By issuing central bank bills, the central bank can withdraw the base currency and put it back when the central bank bills expire.
(2) deposit reserve policy
Deposit reserve refers to the funds prepared by financial institutions to ensure customers' withdrawal of deposits and settlement of funds. The ratio of the deposit reserve paid by financial institutions to the central bank in accordance with regulations to their total deposits is the deposit reserve ratio. The deposit reserve system is established under the central bank system, and the United States is the first country in the world to legally require commercial banks to deposit deposit deposit reserves with the central bank. The initial function of the deposit reserve system is to ensure the payment and settlement of deposits, and then it gradually evolved into a monetary policy tool. By adjusting the deposit reserve ratio, the central bank affects the supply capacity of credit funds of financial institutions, thus indirectly regulating the money supply.
1998 reform of deposit reserve system
With the consent of the State Council, the People's Bank of China decided to reform the deposit reserve system from 1998 to March 2 1 day. The main contents are as follows:
(1) The two accounts of "reserve deposit" and "reserve deposit" of the former financial institution in the People's Bank of China are called "reserve deposit" accounts.
(2) The statutory deposit reserve ratio is lowered from 13% to 8%. The total amount and distribution of the excess part of the reserve deposit account shall be determined by each financial institution.
(3) The statutory deposit reserve of financial institutions shall be uniformly assessed by legal person. The deposit of statutory reserve is divided into the following situations:
1. The statutory deposit reserves of China Industrial and Commercial Bank, China Agricultural Bank, China Bank, China Construction Bank, China Agricultural Development Bank, CITIC Industrial Bank, China Everbright Bank, Huaxia Bank, China Investment Bank and China Minsheng Bank are uniformly deposited by the head office in the head office of the People's Bank of China.
2. The statutory deposit reserves of Bank of Communications, Guangdong Development Bank, China Merchants Bank, Shanghai Pudong Development Bank, Fujian Industrial Bank, Hainan Development Bank, Yantai Housing Savings Bank and Bengbu Housing Savings Bank shall be uniformly deposited by the head office in the branch of China People's Bank where the head office is located.
3. The statutory deposit reserve of city commercial banks shall be uniformly deposited by the head office in the branches of the local people's bank.
4. The statutory deposit reserve of urban credit cooperatives (including county associations) shall be deposited by the legal person at the local people's bank branch. The statutory deposit reserve of rural credit cooperatives is deposited in the branches of the local people's bank according to the current system.
5. The statutory deposit reserve of trust and investment companies, finance companies, financial leasing companies and other non-bank financial institutions shall be uniformly deposited by the legal person in the head office (or branch) of the People's Bank of China where its headquarters is located.
6. The legal person (or one of its branches) of a foreign-funded financial institution, such as a foreign-funded bank or a Sino-foreign joint venture bank, which is approved to engage in RMB business, shall deposit the statutory deposit reserve with the local branch of the People's Bank of China.
(four) the legal deposit reserve of financial institutions shall be assessed by ten days.
1. For commercial banks (excluding city commercial banks) and China Agricultural Development Bank, the ratio of the balance of reserve deposits deposited by the unified legal person to the balance of general deposits of the whole bank at the end of the previous 10 is not less than 8% from the fifth day after the end of business every day to the fourth day of 10.
2 city commercial banks, urban and rural credit cooperatives, trust and investment companies, finance companies, financial leasing companies and other non-bank financial institutions temporarily monthly assessment. At the end of each business day from the 8th of the current month to the 7th of the following month, the ratio of the balance of reserve deposits deposited by financial institutions according to the unified legal person to the balance of general deposits of the institutions at the end of last month shall not be less than 8%.
From June 1998 to June 10, ten-day assessment was conducted on the above financial institutions.
3. All commercial banks (excluding city commercial banks) and China Agricultural Development Bank as legal persons shall submit the summary of the bank's ten-day general deposit balance table to the People's Bank of China within five days after the ten-day period.
4. Now the city commercial banks and non-bank financial institutions that implement the monthly assessment of deposit reserve will submit the system-wide ten-day general deposit balance table to the People's Bank on a monthly basis (within 8 days after the next month). Since June 65438+ 10, the system of submitting the general deposit balance table within five days after the tenth day has been uniformly implemented.
5. All financial institutions shall submit the summary of monthly end-of-month statements of the whole system to the People's Bank of China on a monthly basis. The People's Bank of China regularly reviews relevant data reported by financial institutions.
6. From the date of 200 1 1, all financial institutions as legal persons shall submit a summary of the system-wide general deposit balance table and daily report to the People's Bank of China every day.
(5) If the reserve deposits uniformly deposited by financial institutions and legal persons in the People's Bank of China are less than 8% of the balance of general deposits at the end of the month, the People's Bank of China will charge a penalty interest at the interest rate of six ten thousandths per day for the insufficient part. If a branch of a financial institution overdraws its reserve deposit account in the People's Bank of China, the People's Bank of China will punish it in accordance with relevant regulations. Financial institutions that fail to submit the ten-day general deposit balance statement and the month-end statement on time shall be punished according to Article 78 of the People's Republic of China (PRC) Commercial Bank Law. The above penalties can be imposed concurrently.
(VI) The interest rate of reserve deposits of financial institutions was reduced from 7.56% of paid-in general deposits and 7.02% of reserve deposits (weighted average 7.35%) to 5.22%.
(7) Adjusting the general deposit scope of financial institutions. Institutional group deposits and extra-budgetary deposits in financial deposits of financial institutions acting as agents for the People's Bank of China are classified as general deposits of financial institutions. Financial institutions will deposit a part of general deposits into the People's Bank as statutory deposit reserve in accordance with the prescribed proportion.
(3) central bank loans
I central bank loans
Central bank loan (customarily referred to as refinancing) refers to the loan issued by the central bank to financial institutions, which is an important channel for the central bank to adjust the base currency and a traditional policy tool for financial regulation. Generally speaking, the increase in central bank loans is one of the signals that "monetary policy" will be relaxed; On the contrary, it is one of the signals that "monetary policy" is likely to tighten. By the end of 2000, central bank loans accounted for 45% of the total assets business of the People's Bank of China.
At present, according to the loan term, China's central bank loans have four grades: twenty days, three months, six months and one year. At present, the loan interest rates are 3.24%, 3.5 1%, 3.69% and 3.78% respectively.
Second, the object of the central bank loan
The object of the central bank loan is the financial institution that is approved by the central bank, holds the financial business license issued by the People's Bank of China and opens an account with the People's Bank of China. The Law of the People's Bank of China stipulates: "The People's Bank of China may not provide loans to local governments and government departments at all levels, and may not provide loans to non-bank financial institutions and other units and individuals, except that the State Council decides that the People's Bank of China may provide loans to specific non-bank financial institutions."
The central bank's loans to financial institutions are determined by its special functions and status. Different from financial institutions that mainly lend to enterprises and residents, financial institutions are social credit intermediaries, while the central bank is a bank, a national bank and an issuing bank. It is the "master gate" and lender of last resort of social credit, and has the special mission of adjusting the liquidity of financial institutions in time and preventing and resolving financial risks. Therefore, there are essential differences between central bank loans and financial institutions loans in terms of loan objects. However, the similarity between central bank loans and loans from financial institutions is that borrowers need to repay the principal and interest of loans in time according to the prescribed time limit and interest rate.
The increase or decrease of central bank loans will cause the increase or decrease of base currency. The central bank loan is one of the important channels of the base currency, and it is also one of the important means for the central bank to regulate the base currency.
Third, the base currency.
Base currency, also known as high-energy currency, refers to a currency that has the ability to expand or contract many times the total amount of money. In modern monetary statistics system, it is also defined as reserve currency. At the present stage in China, it mainly consists of three parts: deposit reserve of financial institutions, cash issuance (cash in circulation+cash in stock of financial institutions) and deposits of non-financial institutions (transfer deposits of postal savings in the central bank).
The base money is the basis for the expansion or contraction of the money supply. The degree of this expansion or contraction is usually expressed by the concept of currency multiplier. Theoretically, money supply is the product of base money and money multiplier, which can be expressed as:
M=m B
M stands for money supply, m stands for money multiplier, and b stands for base money. Generally speaking, the money multiplier is relatively stable, so the central bank mainly adjusts the money supply by adjusting the base money. However, with the change of economic and financial structure and management system, the currency multiplier will also change accordingly.
The influence of money multiplier on money supply is mainly manifested in two aspects: first, when the supply of base money increases, the money multiplier magnifies the expansion effect of base money by a certain multiple; Second, under the condition that the base currency remains unchanged, the change of the money multiplier itself will also cause the change of the money supply.
Four. Balance sheet of the central bank
The base currency is the debt of the central bank, but the central bank creates the base currency through its asset business. For the central bank, there is asset business before liability business, that is, assets create liabilities. This is because the central bank monopolizes the right to issue money according to law. On the contrary, general financial institutions decide the use of assets through debt business.
It mainly includes loans from the central bank to financial institutions, especially commercial banks, as well as refinancing, rediscounting and related bill business. It is one of the tools of monetary policy.
According to Article 28 of the Law of the People's Republic of China on the People's Bank of China, which was revised on February 27th, 2003, "The People's Bank of China may decide the amount, term, interest rate and method of loans to commercial banks according to the needs of implementing monetary policy, but the loan term shall not exceed one year.
(4) Interest rate policy
Interest rate is the ratio of interest amount to borrowed funds in a certain period, which is usually divided into annual interest rate, monthly interest rate and daily interest rate. According to the nature of borrowers and borrowers, the length of loan period, etc., interest rates can be divided into different categories-legal interest rate and market interest rate, short-term interest rate and medium-and long-term interest rate, fixed interest rate and floating interest rate, nominal interest rate and real interest rate.
Interest rate policy is an important part of China's monetary policy and one of the main means to implement it. According to the needs of monetary policy implementation, the People's Bank of China uses interest rate instruments to adjust the interest rate level and interest rate structure in a timely manner, thus affecting the supply and demand of social funds and achieving the set goals of monetary policy.
At present, the interest rate instruments adopted by the People's Bank of China mainly include: 1, adjusting the central bank's benchmark interest rate, including: the refinancing rate, which refers to the interest rate adopted by the People's Bank of China to issue refinancing loans to financial institutions; The rediscount interest rate refers to the interest rate used by financial institutions to discount bills to the People's Bank of China; The deposit reserve interest rate refers to the interest rate paid by the People's Bank of China to the statutory deposit reserve deposited by financial institutions; The interest rate of excess deposit reserve refers to the interest rate paid by the central bank to the part of the reserve deposited by financial institutions that exceeds the statutory deposit reserve level. 2. Adjust the legal deposit and loan interest rates of financial institutions. 3. Formulate the floating range of deposit and loan interest rates of financial institutions. 4. Formulate relevant policies and adjust various interest rate structures and grades.
In recent years, the People's Bank of China has strengthened the use of interest rate instruments. Interest rate adjustment is frequent year by year, the interest rate regulation mode is more flexible, and the regulation mechanism is becoming more and more perfect. With the gradual advancement of interest rate marketization reform, interest rate policy, as one of the main means of monetary policy, will gradually change from direct regulation to indirect regulation. As an important economic lever, interest rate will play a more important role in the national macro-control system.
Since the reform and opening up, the People's Bank of China has strengthened the use of interest rate instruments, and gradually made interest rates an important lever by adjusting the level and structure of interest rates and reforming the interest rate management system. In May and July of 1993, the People's Bank of China raised the deposit and loan interest rates twice, and in May and July of 1995, it raised the loan interest rates twice. These adjustments have effectively controlled inflation and the scale of fixed assets investment. 1May and August, 1996,1June, 1997,1March, 1998. In view of the remarkable achievements made in China's macro-control and the obvious drop in market prices, the central bank lowered the deposit and loan interest rates four times in due course, which, on the basis of protecting the interests of depositors, reduced the interest burden of enterprises, especially large and medium-sized state-owned enterprises.
(5) exchange rate policy
Exchange rate policy: refers to the policy means by which the government of a country (or region) determines or controls the exchange rate between its own currency and foreign currency at an appropriate level by issuing financial regulations or implementing measures. Exchange rate policy mainly includes exchange rate policy objectives and exchange rate policy tools.
The objectives of exchange rate policy are: (1) to maintain export competitiveness and achieve the goals of balance of payments and economic growth; (2) stabilize prices; (3) prevent excessive exchange rate fluctuations, thus ensuring the stability of the financial system.
The tools of exchange rate policy mainly include the choice of exchange rate system, the determination of exchange rate level and the change and adjustment of exchange rate level.
The most important thing in exchange rate policy is the choice of exchange rate system, which refers to a series of arrangements and regulations made by a government on the determination of the exchange rate level of its own currency and the way of exchange rate change. Traditionally, exchange rate systems are divided into two categories: fixed exchange rate system and floating exchange rate system.
The basic idea of pegged exchange rate policy is to introduce the credibility of anti-inflation policy in anchor currency countries through currency exchange rate pegging, and at the same time, the public adjusts the expected inflation rate to make it consistent with anchor currency countries. If China's inflation rate is higher than that of anchor currency countries, it will cause the real exchange rate of China's currency to appreciate, and China's commodity prices are relatively higher than those of anchor currency countries, then the demand for China's commodities will decrease accordingly, and the economic activity will also decrease accordingly, thus making China's inflation rate consistent with the long-term inflation rate of anchor currency countries.