News

Central Bank report revealed credit mortgage refinancing has pilot

2014 issued on 10th of the fourth quarter monetary policy report (the report), the Central Bank reiterated that created time and space for structural reforms, providing neutral moderate monetary and financial position. Prevent inertia in the economic downturn, but also prevent excessive "supply water" curing structure. Worth noting is that compared to previous monetary policy report, the Central Bank disclosed the new channel activating credit assets--loans mortgage refinancing. Meanwhile, in the various references to the structural adjustment period to avoid a certain degree of risk exposure, risk prevention in a more prominent position.

activating new channels of credit assets

in the report, the Central Bank said credit assets in 2014 pledge and the Central Bank's internal rating pilot project. This means that memory to be quality credit assets of commercial banks pledged to the Central Bank, access to bank loans, to liquidize the credit assets.

specifically, the Central Bank said in the report in the Shandong and Guangdong provinces to pilot, by the people's Bank [Twitter] internal rating of the quality of credit assets of financial institutions into the scope of Central Bank eligible collateral, improve Central Bank collateral management frameworks. Currently have established credit pledge of assets the borrower of the basic system, operating rules and the Bank's internal rating databases, mortgage refinancing and credit assets operations.

sides of pilot results, the Central Bank concluded that can duplicate the replicable experiences have formed, will continue to promote this year.

ever, the Central Bank and will take way out of a pledge to the base currency, such as the medium-term borrowing facilities (MLF) and standing lending facilities (SLF), collateral for bonds, bills, policy-oriented financial bonds, high grade credit. Pilot in Shandong and Guangdong, the Central Bank credit assets into the scope of eligible collateral for the first time.

small micro-enterprise credit of a joint-stock commercial bank official said: "by way of collateral repo, bonds in the hands of banks can be liquidated. But to activate only through the securitization of credit assets. Central Bank to pilot credit assets in the range of collateral, had difficulties in obtaining liquidity credit another one activate the channel. "

first quality credit assets into collateral framework, on the one hand in order to solve the problem of insufficient collateral for small and medium financial institutions, but also in order to ensure the safety of bank debt.

after the Central Bank was also supplemented by mortgage loan (PSL) tools to provide developmental financial support of slum over 1 trillion yuan, but as used by a mortgage is not yet known.

more risk

in 2014, in the third-quarter monetary policy report, bank debt highlighted local financing platforms, various types of shadow banking, business Internet risk areas of mutual monitoring and analysis. After 3 months, in the report, the Bank increased overcapacity in industry and real estate market, two major areas of risk. Summary of the contents of the report, the Central Bank also pointed out, increasing downward pressure in the structural adjustment process, and with a certain degree of risk exposure and risk prevention task is still very arduous.

a Chief Economist for the brokerage said: "employment and preventing risks, has been the focus of decision-making attention. Although the GDP growth rate down, but because of the emerging service sector employment ability, employment is not a problem in General. In this case, risk is referred to a more important position. "

insiders, end corruption and fiscal reforms in the past," Mayor economy "model, 43rd, fiscal reform measures, such as the impact on local debt also needed attention. Exposure will start at two points: one is at high debt rate and is not included in the debt of local government investment bond; the other is correction when tax reform local government investment impulse, dwell in the past at local enterprises are faced with excess capacity in infrastructure investment, will take the risk of leverage and capacity in the future. From this point of view, monetary easing may not be able to stimulate incremental economic, but stock risk considerations, monetary easing will continue.


 


BACK