The RRR cut is clearly beneficial to inter-bank bonds, but not significantly beneficial to exchange-traded bonds.

Loose funding may push stocks up in the short term, and there is a seesaw effect between stocks and bonds on the exchange.

1. Deposit reserves are monetary funds prepared by financial enterprises to cope with customers’ deposit withdrawals and fund liquidation.

Internationally, deposit reserves mainly include three parts: first, cash on hand; second, deposits deposited with the central bank based on a certain proportion of total deposits or total liabilities, called statutory reserves; third, central bank deposits that exceed statutory reserves

The portion of gold is called excess reserves.

In this law, the scope of deposit reserves is limited to statutory reserves.

2. Deposit reserves are monetary funds prepared by financial enterprises to cope with customers’ deposit withdrawals and fund liquidation.

Internationally, deposit reserves mainly include three parts: first, cash on hand; second, deposits deposited with the central bank based on a certain proportion of total deposits or total liabilities, called statutory reserves; third, central bank deposits that exceed statutory reserves

The portion of gold is called excess reserves.

In this law, the scope of deposit reserves is limited to statutory reserves.

3. The deposit reserve system plays several roles in financial macro-control: first, it regulates and controls the scale of credit; second, it enhances the central bank’s macro-control capability of credit funds.

As for commercial banks themselves, the deposit reserve system also plays a certain role in enhancing the deposit payment capabilities and fund solvency capabilities of commercial banks.

It has three manifestations: it restricts the expansion ability of commercial banks to derive deposits, plays the role of reducing the debt burden and payment pressure of commercial banks, and objectively enhances the payment and fund repayment capabilities of commercial banks.

Fourth, the centralized deposit reserves of the central bank play the final support and guarantee role for the payment and stability of commercial banks.

When commercial bank deposits decline, the central bank reduces deposit reserves according to a prescribed proportion, which can increase the capital position of commercial banks.

5. From the perspective of protecting depositors, this article also clearly stipulates: "Commercial banks shall deposit deposit reserves with the People's Bank of China in accordance with the regulations of the People's Bank of China." Since each commercial bank accepts deposits, it is necessary to prepare

A part of the cash is ready for depositors to withdraw at any time, but not all of it can be loaned out, thereby effectively preventing commercial banks from being unable to cope with the crisis of depositors' cash withdrawals due to excessive lending, limiting the loan scale of commercial banks and ensuring that they have sufficient payment in times of emergency.

ability.

6. Therefore, the deposit reserve system not only puts the interests of depositors under legal protection, but this provision is also conducive to the operational safety of commercial banks.