Core Viewpoint - The article discusses the advantages and disadvantages of the reserve requirement system, noting that its quantitative control and liquidity assurance functions have gradually been replaced by other monetary policy tools. It emphasizes the importance of excess reserve interest rates in exercising price-based control functions through the interest rate corridor mechanism. The article explores the future development direction of China's reserve requirement system in the context of financial deepening and monetary policy transformation [1]. Group 1: Research Background - The reserve requirement system is a core tool of modern monetary policy, ensuring liquidity and financial stability by requiring commercial banks to deposit a certain percentage of their deposits as reserves with the central bank. It has both quantitative and price-based control attributes, allowing for adjustments in the reserve ratio to regulate the money supply and setting reserve interest rates to participate in the interest rate corridor mechanism [2]. Group 2: Advantages and Disadvantages of the Reserve Requirement System Advantages - The reserve requirement system contributes to financial stability by ensuring the payment and clearing capabilities of commercial banks, thus avoiding liquidity risks [3]. - It regulates market liquidity by adjusting the reserve ratio during periods of excess or insufficient liquidity, maintaining market stability [3]. - It helps suppress inflation by reducing the money supply during economic overheating [4]. - It can mitigate capital inflows and unilateral exchange rate fluctuations through differentiated reserve requirements for foreign institutions [4]. Disadvantages - Adjustments to the reserve requirement can lead to significant liquidity changes, causing excessive reactions from financial institutions and market volatility [5]. - The low interest rates on required reserves can act as a tax on banks, potentially leading to higher costs for customers and affecting competition with non-bank financial institutions [5]. - Financial innovations have weakened the money multiplier effect, with the elasticity coefficient of M2/GDP in China declining by 0.3 from 2015 to 2020 [5]. - The functions of the reserve requirement system have diminished, as financial stability can now be achieved through stricter capital adequacy requirements and liquidity indicators established by Basel III [5]. Group 3: Historical Evolution and Current Status of Reserve Requirement Systems in Major Countries United States - Before the 1980s, the Federal Reserve used the reserve requirement system to control money supply, but reliance shifted to open market operations and discount windows due to financial innovations. Following the 2008 financial crisis, the reserve requirement system was effectively phased out, with the Federal Reserve focusing on maintaining sufficient reserves to directly influence short-term market rates [6]. United Kingdom - The Bank of England initially implemented a mandatory reserve requirement but later transitioned to a zero reserve requirement to enhance competitiveness. In 2006, it adopted a voluntary reserve system, paying interest on agreed reserve amounts [7]. Eurozone and Japan - Unlike the U.S. and U.K., the European Central Bank and the Bank of Japan have maintained low reserve requirements while focusing on interest rate tools to achieve monetary policy goals [8]. Emerging Economies - Emerging economies continue to utilize reserve requirements as a macroprudential policy tool to stabilize financial markets and manage capital flows, with countries like Brazil and India successfully implementing dynamic reserve requirements to address liquidity issues [9]. Group 4: Current Status of China's Reserve Requirement System - China continues to implement the reserve requirement system, which plays a role in regulating money supply and serves as a macroprudential policy tool. However, the reserve interest rate has not yet become a significant part of the price control system [11]. Group 5: Future Development Directions of China's Reserve Requirement System Overall Conditions - China is positioned to consider the cancellation of the reserve requirement system as a quantitative control policy, while still needing to maintain a low ratio of required reserves for daily payment and clearing needs [15]. Price-Based Control Policies - The central bank is advancing a price-based control policy centered on interest rate adjustments, having already relaxed restrictions on interest rate fluctuations [16]. Recommendations - It is suggested to retain a certain level of required reserves to ensure daily payment and clearing needs, while optimizing the interest rate corridor to enhance the effectiveness of interest rate guidance [19].

Historical Evolution of Deposit Reserve System - The deposit reserve system originated in the early 18th century in the UK, evolving from spontaneous interbank clearing needs to a legal risk buffer mechanism in the early 19th century in the US [5][21] - In China, the system was officially established in 1984 when the People's Bank of China began exercising central bank functions, with significant reforms occurring in 1998 to enhance the payment and clearing functions of reserve deposits [5][10] - Since 2015, China's reserve requirements have been assessed using an average method, providing important liquidity management buffers for banks [5][10] International Comparisons and Practices - Internationally, central banks like the Federal Reserve and the European Central Bank have adopted various reserve management practices, including accepting cash reserves and implementing tiered reserve requirements [13][47] - The experience of developed countries shows a trend of lower legal reserve requirements and higher excess reserves compared to China, which currently operates under a framework of structural liquidity shortage [8][13] Future Directions of Deposit Reserve System Reform - Conditions for breaking the 5% experience lower limit for reserve requirements are gradually maturing, with necessary institutional arrangements in place to support the transition [6][14] - The shift from quantity-based monetary policy to price-based policy is a prerequisite for relaxing the legal reserve requirement system, indicating a potential future direction for reform [6][14] Regulatory Functions and Macro-Prudential Management - The deposit reserve system has evolved to include differential reserve requirements and macro-prudential assessments, enhancing the ability to manage systemic financial risks [5][34] - The introduction of the macro-prudential assessment framework in 2016 marked a significant shift in focus from narrow credit growth to broader credit metrics, integrating various financial indicators into the regulatory framework [34][37] Implications for the Bond Market - If the reform of the reserve requirement system is implemented, it may lead to short-term benefits for the bond market, including increased liquidity and potential for larger fund releases during rate cuts [14] - However, the long-term impact on the bond market may be neutral, as the transition to price-based control could diminish the influence of reserve adjustments on market dynamics [14]

Group 1 - The central bank has introduced 10 measures to inject liquidity into the market, reduce costs for enterprises and residents, and provide targeted support for key sectors such as technology and consumption [2] - The financial regulatory authority has launched 8 incremental measures to support the real estate market and stabilize it, as well as to assist foreign trade enterprises affected by tariffs [3] - The securities regulatory commission has implemented a series of measures to stabilize the capital market, including enhancing market monitoring and reforming the Sci-Tech Innovation Board and the Growth Enterprise Market [4] Group 2 - The overall economic growth in the first quarter was 5.4% year-on-year, indicating a positive trend, but there are still challenges such as insufficient domestic demand and weak social expectations [1] - The comprehensive financial policies aim to enhance the effectiveness and sustainability of economic support, focusing on a coordinated approach across various sectors including monetary policy, investment, and employment [4][5] - Guangdong province, as a major economic and financial hub, is encouraged to actively implement the central government's financial policies to stabilize market expectations and support economic development [5]

作 者丨唐婧 编 辑丨杨希 5月7日上午9时，国新办举行新闻发布会，中国人民银行行长潘功胜、金融监管总局局长李云 泽、中国证监会主席吴清介绍"一揽子金融政策支持稳市场稳预期"有关情况。 潘功胜在会上正式宣布，降低存款准备金率0 . 5个百分点，预计将向市场提供长期流动性约1万 亿元；完善存款准备金制度，阶段性将汽车金融公司、金融租赁公司的存款准备金率从目前的 5%调降为0%。 潘功胜还称，下调政策利率0 . 1个百分点，即公开市场7天期逆回购操作利率从目前的1 . 5%调 降至1 . 4%，预计将带动贷款市场报价利率（LPR）同步下行约0 . 1个百分点。此外，下调结构 性货币政策工具利率0 . 2 5个百分点，降低个人住房公积金贷款利率0 . 2 5个百分点。 本次降准降息的一大背景是，4月中国采购经理指数（P M I）再次回到临界点以下。4月 3 0 日 ， 国 家 统 计 局 服 务 业 调 查 中 心 和 中 国 物 流 与 采 购 联 合 会 发 布 的 数 据 显 示 ， 4 月 份 ， 制造业采购经理指数为4 9 . 0 %，比上月下降1 . 5个百分点，回落至临界点以下；非制造业 商务活动指数 ...

Core Viewpoint - The People's Bank of China (PBOC) announced a comprehensive set of ten specific policy measures aimed at stabilizing the market and expectations through a package of financial policies [1][6]. Group 1: Monetary Policy Adjustments - The PBOC will intensify macroeconomic control and implement a moderately loose monetary policy [3]. - The reserve requirement ratio will be lowered by 0.5 percentage points, expected to provide approximately 1 trillion yuan in long-term liquidity to the market [3]. - The policy interest rate will be reduced by 0.1 percentage points, with the 7-day reverse repurchase rate decreasing from 1.5% to 1.4%, likely leading to a similar decline in the Loan Prime Rate (LPR) [4]. - Structural monetary policy tool rates will be cut by 0.25 percentage points, including various special structural tool rates and the re-lending rate for agriculture and small enterprises, which will drop from 1.75% to 1.5% [4]. - The personal housing provident fund loan rate will be reduced by 0.25 percentage points, with the five-year and above first home loan rate decreasing from 2.85% to 2.6% [4]. Group 2: Support for Innovation and Consumption - The quota for re-lending for technological innovation and technological transformation will be increased by 300 billion yuan, raising the total from 500 billion yuan to 800 billion yuan [4]. - A new 500 billion yuan re-lending facility for service consumption and elderly care will be established to encourage banks to increase credit support in these areas [5]. - The quota for re-lending to support agriculture and small enterprises will also be increased by 300 billion yuan, working in tandem with the reduced re-lending rates [5]. Group 3: Capital Market Support - Two monetary policy tools supporting the capital market will be optimized, combining a 500 billion yuan swap facility for securities, funds, and insurance companies with a 300 billion yuan stock repurchase re-lending, totaling 800 billion yuan [5]. - A risk-sharing tool for technology innovation bonds will be created, allowing the central bank to provide low-cost re-lending funds to purchase these bonds, thereby supporting technology innovation enterprises and equity investment institutions [5].

Group 1 - The People's Bank of China (PBOC) announced a 0.5 percentage point reduction in the reserve requirement ratio (RRR), expected to provide approximately 1 trillion yuan in long-term liquidity to the market [1][2] - The RRR adjustment includes a reduction for automotive finance and financial leasing companies from 5% to 0%, which is a significant reform in the reserve requirement system [1][3] - The PBOC also lowered the policy interest rate by 0.1 percentage points, reducing the 7-day reverse repurchase rate from 1.5% to 1.4%, which is anticipated to lead to a similar decrease in the Loan Prime Rate (LPR) [1][4] Group 2 - The reduction in the RRR is seen as a response to structural liquidity issues in the market, aiming to enhance long-term liquidity supply while reducing banks' funding costs [2][3] - The adjustment in the reserve requirement for automotive finance and leasing companies is expected to improve their ability to provide credit in specific sectors, such as automotive consumption and equipment investment [3] - The interest rate cut is part of a broader strategy to stabilize the economy, with expectations that it will lower financing costs for the real economy and support employment and market stability [1][5] Group 3 - The PBOC also announced a reduction in the housing provident fund loan interest rate by 0.25 percentage points, with the new rate for first-time homebuyers over five years dropping from 2.85% to 2.6% [5][6] - This interest rate adjustment is projected to save residents over 20 billion yuan annually in loan interest, thereby supporting housing demand and stabilizing the real estate market [5][6] - The rate cut applies to both new and existing housing provident fund loans, which will reduce the monthly payment for borrowers, effectively increasing disposable income and enhancing consumer spending capacity [6]

Core Viewpoint - The People's Bank of China (PBOC) is implementing a comprehensive set of monetary policy measures to stabilize the market and expectations, following the Central Political Bureau's meeting on April 25, aimed at promoting a moderately loose monetary policy [1][2]. Group 1: Quantity-based Policies - The first category of policies focuses on quantity measures, primarily through reserve requirement ratio (RRR) cuts to enhance long-term liquidity supply, with specific actions including a 0.5 percentage point reduction in the RRR, expected to provide approximately 1 trillion yuan in long-term liquidity [2]. - The PBOC will also adjust the RRR for auto finance and financial leasing companies from 5% to 0% temporarily [3]. Group 2: Price-based Policies - The second category includes price measures, such as a 0.1 percentage point reduction in the policy interest rate, lowering the seven-day reverse repurchase rate from 1.5% to 1.4%, which is anticipated to lead to a similar decrease in the Loan Prime Rate (LPR) [4]. - Structural monetary policy tool rates will be reduced by 0.25 percentage points, including a decrease in the re-lending rate for agriculture and small enterprises from 1.75% to 1.5%, and the mortgage supplementary loan (PSL) rate from 2.25% to 2% [4]. - The personal housing provident fund loan rate will also be lowered by 0.25 percentage points, with the five-year and above first home loan rate decreasing from 2.85% to 2.6% [4]. Group 3: Structural Policies - The third category aims to enhance existing structural monetary policy tools and innovate new ones to support technological innovation, expand consumption, and promote inclusive finance. Specific measures include increasing the re-lending quota for technological innovation and technological transformation from 500 billion yuan to 800 billion yuan [5]. - A new 500 billion yuan "service consumption and elderly care re-lending" will be established to encourage banks to increase credit support for service consumption and elderly care [6]. - The re-lending quota for agriculture and small enterprises will be increased by 300 billion yuan, with a concurrent reduction in the re-lending rate to support banks in expanding loans to agricultural small and private enterprises [6]. - The optimization of two monetary policy tools supporting the capital market will merge the 500 billion yuan swap convenience for securities, funds, and insurance companies with the 300 billion yuan stock repurchase increase re-lending, resulting in a total quota of 800 billion yuan [6]. - A risk-sharing tool for technological innovation bonds will be created, allowing the central bank to provide low-cost re-lending funds to purchase these bonds, supporting low-cost, long-term financing for technology innovation enterprises and equity investment institutions [6]. Implementation - The ten main policy measures across the three categories will be gradually disclosed and implemented on the PBOC's website [7].