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Knowledge: what does it mean to repay? The role of performance

Time: 2014-07-07         Source: melt 360 finishing         Author: well-off

  Loan againWhat means? againloanRefers to the central bank loans to financial institutions to achieve the goal of monetary policy. Re-lending in China has two meanings. In a narrow sense, re-lending refers to the central bank's general term for lending to financial institutions. Broadly defined lending refers to the concept of refinancing and includes the rediscount of bills. However, as one of the three major magic weapons of traditional monetary policy instruments, rediscount should be excluded from the category of re-lending.

The role of refinancing is mainly reflected in the following aspects:

1, adjust the money supply. During the period of rapid economic growth from 1984 to 1993, refinancing has always been an important channel for the Central Bank to handle the base currency. The refinancing of loans will help to make up for the lack of key funds, adjust the industrial structure, adjust the remaining funds in regions or departments, Growth has played a crucial role.

2, adjust the position is not enough. In order to achieve the goal of national economic growth, the People's Bank of China, in accordance with its planned growth of the money supply, will issue repayments to financial institutions in a timely manner and adjust the liquidity of commercial banks flexibly so as to affect the ability of commercial banks to expand loans.

3, stabilize economic and financial order. In 1998, under the influence of the Asian financial turmoil, the poor management of a few financial institutions led to the payment crisis. The central bank timely played the role of the lender of last resort. It issued emergency loans to small and medium-sized financial institutions in crisis, easing the payment pressure, controlling the payment crisis, Quickly and effectively stabilized the financial situation. We will provide refinancing to the financial institutions that have been closed and revoked and liquidated for the repayment of personal debts so as to defuse local financial risks and ensure the peace on one side.

4, support for financial system reform. In line with China's financial system reform, timely repay loans to policy banks, asset management companies, commercial banks and rural credit cooperatives to ensure a smooth transition during the transition period.


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