Xia Bin increase deposit rates does not mean that monetary tightening standards

 The central bank raised the deposit reserve Shuaiyi the recovery of 2009, 2010, caused by excess liquidity on the market, does not mean that monetary policy began to tighten. In the Jan. 5 at the fourth annual meeting of the international financial market analysis Xia case analysis. In addition, he also said the rate hike is too much liquidity to recover one of the options, but if faced with a sudden increase in money supply, in many cases, the rate hike impact on the recovery of mobility requires a series of policy transmission mechanism, in time have delayed effects, as effective as raising the deposit reserve ratio direct and obvious.

Xia pointed out that the 2011 total to give full attention to the concept of social finance. Now more and more financial instruments, financial market deepening, so to maintain a stable monetary policy, to face the new situation. Currently, the essence of prudent monetary policy to maintain the stable development of China's real economy, its essence is to see it from the surface of the real economy in the end to how much financial capital, or what should be regulated in a level. Therefore, this year and the money supply M2, loans to finance indicators emphasize the total control of society.

Xia Bin also believe that the difference between the dynamic reserve is the central bank according to the present situation of China's. Banks did not fully adequate competition, network organizations are not the same situation, if across the board, uniform deposit reserve to mention how many big banks, small banks the burden is completely different, probably more than a large bank branches, deposits and more pressure is not. While the small banks can not afford, suddenly tight liquidity, leading to more difficult financing for SMEs. Therefore, according to the situation in China, in the prudent management of those with the macro-policy tool, but also take into account the natural development of the Chinese banking system is not enough, reform is not enough, and bring about some structural features, may be the policy of the central bank in a unified regulation has to say some flexibility. (Summer Youth)