In the wake of the epidemic, governments around the world view saving the economy as as as important as fighting it. China's government recently called on banks to yield 1.5 trillion yuan to companies to raise concerns.
On June 17, the executive meeting of the State Council of China revealed that it would push the financial system to make a reasonable profit of 1.5 trillion yuan to various enterprises throughout the year.
The report said the policy triggered a heated debate. Supporters argue that a weak real economy could also jeopardize bank profits in the future, allowing the overall economy to recover quickly if "fish with water" is released and that interest-rate cuts would make bank costs lower and "yield benefits" legitimate.
The government has announced a series of fiscal relief plans, including the issuance of special anti-epidemic debt.
The epidemic caused the Chinese economy to decline in the first quarter. At last month's two sessions, the government's work report said that financial institutions and loan enterprises co-prosperity, encouraging banks to make reasonable profits.
At the June 17 meeting, China further clarified the ways to realize the yield, including guiding the interest rate of loans and bonds down, issuing preferential interest rate loans, implementing loans for small and medium-sized enterprises to extend debt service, supporting the issuance of unsecured credit loans for small and micro enterprises, and reducing bank charges. Our mold company also experienced the tax reduction concessions, which is indeed helpful to enterprises, hope the scope of concessions can be greater.
Bank appropriate "water fish ", economic recovery is more guaranteed. Profit is mainly reflected in the further reduction of interest rates on loans to real enterprises, not some people think that "directly do not bank profits." Lower interest rates on loans are at the heart of profit. He estimated that assuming an annual credit growth rate of 13.5 percent and lending rates falling to an all-time low of 4.76 percent in 2009, bank lending to the real economy through credit channels would reach about 1.18 trillion yuan this year, or 79 percent of 1.5 trillion yuan.
In addition, according to the team estimates, lower bond interest rates can yield about 70 billion yuan, small and medium-sized enterprises loans extended debt service yield about 230 billion yuan. The sum of the three will reach 1.48 trillion yuan.
