2020 Central Bank Working Conference: Continue to steadily advance the development of fiat digital currencies

Source: People's Bank of China (WeChat public account)

The 2020 People's Bank of China Working Conference was held in Beijing from January 2 to 3.

Guided by Xi Jinping's thoughts on socialism with Chinese characteristics in the new era, the meeting thoroughly studied and implemented the spirit of the Fourth Plenary Session of the 19th Central Committee of the CPC and the Central Economic Work Conference, summarized the main work in 2019, analyzed the current economic and financial situation, and deployed key tasks in 2020. People's Bank President Yi Gang and Party Secretary Guo Shuqing attended the meeting and delivered speeches. Chen Yulu, Deputy Governor of the People's Bank of China, Pan Gongsheng, Fan Yifei, Zhu Hexin, Liu Guoqiang, Xu Jiaai, head of the Discipline Inspection and Supervision Group of the State Commission for Discipline Inspection of the Central People's Bank of China, and member of the People's Bank of China Party Committee Xu Jiaai attended the meeting and proposed work in the field of management Specific requirements.

The meeting held that in 2019, under the strong leadership of the Party Central Committee and the State Council, in the face of the complex situation of rising domestic and foreign risk challenges, the People's Bank of China adhered to a prudent monetary policy, resolutely guarded against major financial risks, and continued to deepen the financial crisis. Supply-side structural reforms, continuous improvement of financial management and services, not forgetting the original intention, keeping in mind the mission, being courageous, and working hard, have achieved remarkable results in various tasks.

First, the effectiveness of monetary policy was further improved. In response to the increasing downward pressure on the economy, the monetary policy has focused on countercyclical adjustments, and the deposit reserve ratio of financial institutions has been lowered three times; the creation of a central bank bill swap tool to support banks in issuing perpetual bonds to supplement capital and improve bank lending capabilities; flexible use of medium-term loan facilities A variety of monetary policy tools, such as standing loan facilities and open market operations, keep the banking system liquid and reasonable. The annual growth rate of broad money supply M2 and social financing scale basically matched the nominal GDP growth rate. At the same time, we will focus on reforming the monetary policy transmission, reform and improve the formation of the lending rate in the loan market (LPR) formation mechanism, break the implicit lower limit of the loan interest rate, and do everything possible to reduce corporate financing costs. The flexibility of the RMB exchange rate will be further enhanced, and the RMB exchange rate will remain basically stable at a reasonable and balanced level.

Second, key progress has been made in preventing and tackling major financial risks. The People's Bank of China earnestly fulfills the duties of the Office of the Financial Committee and takes the lead in implementing the action plan to prevent and resolve major financial risks. After efforts, the excessively rapid rise in macro leverage was effectively contained, and the effectiveness of shadow banking governance was obvious. Major financial institutions made significant breakthroughs in risk disposal, external shock risks were effectively addressed, bond default disposal mechanisms were continuously improved, and Internet financial risks were fully managed. In particular, it took decisively to take over the contractor's bank in accordance with the law. While protecting the legal rights and interests of depositors and customers to the greatest extent, it resolutely broke rigid payments, tightened market discipline, promoted financial market credit stratification, and promoted reasonable pricing of market risks. At the same time, we will strengthen the construction of long-term mechanisms and accelerate the completion of macro-prudential policy frameworks such as foreign debt and real estate finance, as well as system shortcomings such as supervision of financial holding companies and supervision of integrated financial infrastructure.

Third, financial support for the real economy has continued to increase. Promote financial institutions to support key areas, major projects and important construction projects, and promote high-quality development of the manufacturing industry. Financial targeted poverty alleviation has achieved remarkable results. Financial services for rural rejuvenation continued to improve, and the “two-rights” mortgage loan pilot was effectively linked. Further alleviate the difficulty of financing for small and micro private enterprises, continue to promote the formation of the "several companies" policy synergy, innovate the use of multiple monetary policy tools, give full play to the role of private enterprise bond financing support tools, and increase the financing support for receivables of small and large enterprises , Innovation and improvement of credit service for small and micro enterprises. Through joint efforts of all parties, the financing of small and micro enterprises has shown a good trend of “increasing volume, expanding, and falling prices.” Over-completed the small and micro enterprise loans of large state-owned commercial banks by more than 30% in 2019, and the overall cost of small and micro enterprise loans fell by one. Percentage of policy goals.

Fourth, the financial reform and opening up have continued to deepen. Concentrated announcement of more than 30 measures to liberalize, and clearly advance the cancellation of the proportion of foreign shares in securities, funds, futures and life insurance to 2020. The restrictions on investment quotas for qualified foreign investors will be fully lifted. Foreign-funded institutions are allowed to conduct bond underwriting and rating business in the interbank market. Twelve measures were introduced to further promote cross-border trade and investment facilitation. Elimination of national and regional restrictions on piloting qualified foreign institutional investors in RMB. Increase the personal RMB remittance limit in Macau. Expand the number of participating institutions in the RMB cross-border payment system. Promote the interconnection and interconnection of the bond market infrastructure. Actively do a good job in financial support for the Hainan Pilot Free Trade Zone, the free trade port, the Guangdong-Hong Kong-Macao Greater Bay Area, and high-quality integrated development in the Yangtze River Delta. International and regional financial cooperation has continued to deepen. Give play to the role of the G20 platform, strengthen international macroeconomic and financial policy coordination, and maintain multilateral rules and systems. Promote the implementation of the results of the second Belt and Road Forum for International Cooperation.

Fifth, the level of financial services and management has been continuously improved. Effectively perform the important legislative duties of coordinating the financial industry and improve the level of administration according to law. The comprehensive statistical work of the financial industry is progressing smoothly, and the financial basic data center is set up as scheduled. The central bank's research on fundamental issues has steadily improved. The modern central bank's financial governance construction and the central bank's balance sheet health mechanism have been continuously deepened. The administrative license for opening bank accounts of enterprises was completely cancelled. The mobile payment convenience project is developing in depth. Completed the centralized depository of the client's reserve funds of payment institutions. The fintech development plan was released and pilots of fintech applications were launched. The number of global legal person identification codes (LEIs) was significantly increased. Successfully issued the 2019 version of the RMB and the 70th anniversary coin of the founding of New China. The development of fiat digital currencies is progressing smoothly. Further standardize the management of large amounts of cash. Optimize the state treasury withdrawal process to ensure that the tax reduction policy dividends are implemented in small and micro enterprises. The interim measures for credit rating industry management were issued, and unified registration and inquiries of movable property guarantees were launched in Beijing and Shanghai, helping to boost China's business environment rankings. China's anti-money laundering and anti-terrorist financing mutual assessment report was reviewed by the Plenary of the Financial Action Task Force. Establish a coordination mechanism for the protection of financial consumer rights and interests to further standardize financial marketing propaganda. New achievements have been made in internal audits, staff research, security, retired cadre services, and logistical support. The People's Bank of China's Shanghai headquarters, branches, directly-affiliated enterprises, institutions and related units played a solid role in implementing solid policies for financial services in the real economy, continuously improving the effectiveness of financial management and financial services, and effectively maintaining financial stability in their jurisdictions. Work of the head office and development of the local financial industry.

The meeting pointed out that in 2019, the People's Bank of China has achieved remarkable results in strictly administering the party in an all-round way, and the party-wide practice in the entire system has continued to improve.

The first is to strengthen the party's political construction around the practice of "two safeguards." The party committee of the executive committee has firmly established the "four consciousnesses", strengthened the "four self-confidences", and resolutely grasped the implementation of the spirit of General Secretary Xi Jinping's important instructions and instructions in a spirit of nailing. Continue to study and educate on political discipline and political rules, conscientiously implement democratic centralism, and strictly implement the reporting system for major issues. Earnestly implement the ideological work responsibility system and strengthen the spirit and consciousness of struggle.

The second is to further strengthen ideals and convictions through solid education on the theme of "do not forget the original intention and keep the mission in mind". The entire system of party organizations and party members and cadres further deepened their understanding of the party's original mission, deepened the understanding of the essence of Xi Jinping's new era of socialist thinking with Chinese characteristics, fully recognized the significant advantages of the socialist system with Chinese characteristics and the national governance system, and further Enhanced "Four Confidence".

Thirdly, the role as a motivator has obviously increased. The entire system consciously implements the new mission entrusted by the Party Central Committee, better plays the role of overall coordination and coordination of financial management, leads the overall role, takes on the legal responsibilities of preventing and resolving systemic financial risks and maintaining financial stability, and accelerates the improvement of the macro-prudential policy framework Make up the shortcomings of the system.

The fourth is to solve problems for the people. The party committee insists on the people-centered development ideology and takes the lead in solving problems for the people. When planning work, tightly twist the new development concept to promote development and focus on solving various imbalances and inadequate problems.

Fifth, the internal system construction and organization construction have been continuously improved. Vigorously promote the normative development of party building at all levels of the system, and formulated and issued guidelines for strengthening the political construction of the People's Bank of China, a reporting system for major events, a "big supervision" mechanism, and inspection work methods. Improve the assessment and evaluation methods for cadre selection and appointment, and improve the political ability and leadership level of leading cadres.

Sixth, new results have been seen in style construction. We will continue to promote the formal rectification of formalism and bureaucracy, and carry out warning education solidly. Strictly implement the spirit of the eight requirements of the Central Committee and earnestly implement the ten bans of the People's Bank of China on upright discipline.

Seventh, supervision and discipline accountability and the fight against corruption have been further strengthened. Party committees at all levels clearly support the dispatch of disciplinary inspection and supervision teams and discipline inspection committees at all levels to perform their duties in accordance with regulations and laws, in a coordinated and efficient way to implement the "two responsibilities" of strictly and strictly governing the party. Resolutely rectify corruption in the financial field, and strive to lead the way and set an example.

Regarding work in 2020, the meeting requested that the People's Bank of China should be guided by Xi Jinping's thoughts on socialism with Chinese characteristics in the new era, fully implement the spirit of the Fourth Plenary Session of the 19th Central Committee of the Party and the Central Economic Work Conference, and closely follow the goals and tasks of a well-off society The "Thirteenth Five-Year Plan" ends, adheres to the general tone of progress while maintaining stability, adheres to the new development concept, adheres to the main line of structural reforms on the supply side, implements a stable monetary policy, and resolutely wins the battle to prevent and resolve major financial risks and deepen finance Reform and opening up, comprehensively carry out the "six stability" work, make overall plans to promote stable growth, promote reform, adjust the structure, benefit the people's livelihood, prevent risks, maintain stability, and create a good monetary and financial environment for high-quality economic development.

The first is to maintain a flexible and moderate monetary policy. Strengthen counter-cyclical adjustments, maintain reasonable and sufficient liquidity, and promote the growth of monetary credit and social financing to match economic development. Continue to deepen the reform of the market-oriented interest rate and improve the transmission mechanism of the quoted interest rate in the loan market. Continue to promote banks' replenishment of capital through multiple channels, including the issuance of perpetual bonds. Adhere to the decisive role of the market in the formation of the exchange rate, and keep the RMB exchange rate basically stable at a reasonable and balanced level.

The second is to resolutely win the battle to prevent and resolve major financial risks. Clarify the boundaries of the responsibilities of all parties, compact the responsibilities of all parties, compact the main responsibilities of financial institutions, the responsibility for local government's territorial risk disposal and the first responsibility for maintaining stability, the financial supervision department's supervision responsibility, and the PBOC's last lender responsibility, and resolutely prevent moral hazard. Establish and improve the financial institution's recovery and disposal mechanism, loss sharing mechanism and incentive and restraint mechanism. Highlight the key points and continue to do a good job of risk management of key financial institutions in accordance with laws and regulations. Continue to carry out special rectification of Internet financial risks, basically eliminate the risks of Internet financial stocks, and establish and improve a long-term supervision mechanism. Accelerate the establishment of a long-term management mechanism for real estate finance. Further play the role of deposit insurance institutions in risk management. Speed ​​up the establishment of the local coordination mechanism of the Finance Committee Office.

Third, focus on alleviating the difficulty of financing for small and micro enterprises, and increase the supply-side structural reform of financial support. We will improve the incentive mechanism for loan appraisal of small and micro enterprises, implement the credit due diligence and exemption system, and create a policy environment that is willing to lend and can lend. Promote multi-sector synergy, and use policy tools such as targeted RRR cuts, re-loan rediscounts, macro-prudential assessments, and credit management to effectively promote the improvement of financing for small and micro enterprises. Increase credit support for key areas and weak links. Focus on deep poverty areas, improve the financial support industry to drive the poverty alleviation mechanism, and help win the battle against precision poverty alleviation.

The fourth is to accelerate the improvement of the macro-prudential management framework. Preparation of macro-prudential policy guidelines. Construct a macro-prudential stress test system. Speed ​​up the establishment and improvement of a macro-prudential management mechanism for cross-border capital flows that integrate local and foreign currencies. Gradually expand the scope of macro-prudential policies. Organize the implementation of systemically important bank assessments and promote the implementation of supervision and management measures for financial holding companies.

Fifth, continue to deepen financial reform and opening up. Deepen reform of financial markets and financial institutions. Actively develop the bond market and continue to promote the interconnection and interconnection of the bond market infrastructure. Strengthen the overall supervision and construction planning of financial infrastructure. Deepen the reform of small and medium banks and rural credit cooperatives, and further improve the governance structure of policy banks. Actively and steadily promote the internationalization of the RMB. We will further advance the reform of the foreign exchange management system, and support the Pilot Free Trade Zone and the Free Trade Port to try out foreign exchange management reform first. Improve the integrated management framework of “macro-prudential + micro-regulation” in cross-border capital flows.

Sixth, strengthen research and development and application of financial technology. We will implement the development plan for fintech, establish and improve the basic rules and regulations system for fintech supervision, and do a good job of piloting fintech innovation supervision. Continue to steadily advance the development of legal digital currencies. Further expand the application field of Global Legal Person Identification Code (LEI) in China.

Seventh, comprehensively improve the level of financial services and financial management. Make overall plans to promote the construction of financial laws, regulations and rules. Strengthen financial statistics monitoring and analysis, and build a financial statistics platform and basic financial database that are in line with the development direction of big data. Deepen the pilot projects of regional financial reforms such as science and technology finance, green finance, inclusive finance, financial innovation and regional coordinated development. Promote the modernization of central bank financial governance. Explore the establishment of a coordinated supervision of the payment industry and the implementation of territorial supervision responsibilities, promote the further development of mobile payment convenience projects, and fully cooperate with the fight against new types of illegal crimes and cross-border online gambling activities in telecommunications networks. Strike hard against illegal and criminal activities of counterfeit currency. Accelerate the development of high-quality treasury, and handle all budget revenue and expenditure business in a timely and accurate manner. Steadily promote the online upgrade of the second-generation credit information system, and strengthen the personal credit information security management and personal privacy protection. Further strengthen the anti-money laundering coordination mechanism and continue to strengthen anti-money laundering supervision. We will improve the coordination mechanism for the protection of financial consumer rights and interests and coordinate the promotion of inclusive finance.

Further improve the internal management level of financial management, internal audit, security, work of retired cadres, and logistical support. Further strengthen the performance guarantee of staff members.

The meeting emphasized that in order to do all the work in 2020, we must adhere to the party's centralized and unified leadership of financial work, firmly establish the "four consciousnesses", continuously enhance the "four self-confidences", and resolutely achieve "two maintenances". The Party Central Committee with Comrade Xi Jinping at its core maintains a high degree of consistency and provides a strong political guarantee for the full performance of various responsibilities.

First, we must always put political construction in a more prominent position, and implement the spirit of General Secretary Jinping ’s important instructions and instructions and the Party ’s central government ’s decision-making and deployment as major political tasks, explore the construction of a modern central bank system, and further deepen financial supply-side structural reforms. We will resolutely fight against major financial risks, and strive to stay ahead of systemic financial risks. Adhere to administration according to law and build a central bank governed by law. Strive to be at the forefront of the pilot establishment of "model agencies that assure the central authorities and satisfy the people".

The second is to consolidate and expand the achievements of thematic education, and set up rectification books around the problems found in the thematic education inspections.

The third is to continuously strengthen the understanding of the "first and foremost political organization" of the People's Bank of China, strengthen the political building of the leadership team, select and match the leadership teams at all levels, and discover and train outstanding young cadres, do a good job of the Communist Youth League and youth, and strengthen the cadre team to adapt to modern The capacity needed for central bank development.

The fourth is to further improve ideological methods and work style, adhere to the ideological line of seeking truth from facts, arm the mind with the party's innovative theory, and do a good job of ideological work. Resolutely put an end to all forms of formalism and bureaucracy, and earnestly improve working methods and methods. Actively serve the people and enterprises and institutions "a step forward" and maintain closer contact and communication with local and departmental authorities.

Fifth, it is necessary to promote the comprehensive and strict administration of the party with greater efforts and resolutely implement the "two responsibilities." Governing the party and governing the party must be taken as the most fundamental responsibility. We must dare to show our sword and continuously increase anti-corruption efforts in the financial field. Deepen both the symptoms and the root causes, make good use of the "four forms", and promote the integration of neither daring to rot nor rotting. Efforts should be made to strengthen warning education and ideological education, and earnestly learn the lessons of major corruption cases. It is necessary to continue to improve the inspection work mechanism and system, unswervingly deepen political inspections, and further promote discipline inspection and supervision, internal and external inspections, audits and special inspections to form a long-term supervision mechanism.

The meeting emphasized that the task of financial affairs in 2020 is arduous, the responsibility is heavy, and the mission is glorious. The cadres and staff of the People's Bank of China should be more closely united around the Party Central Committee with Comrade Xi Jinping as the core, keep in mind the original intention and mission of financial work, practice "two safeguards" with practical actions, continuously improve the style, enhance the confidence of winning, and be positive As a result, we dare to take the responsibility and take on the heavy responsibility to ensure that the various arrangements of the Party Central Committee and the State Council for financial work are put in place and make greater contributions to the success of building a well-off society in an all-round way!

Members of the leadership team, chief accountant, and chief economist of the SAFE, members of the leadership team of the People's Bank of China's Shanghai headquarters, and branches above the deputy provincial-level city center branch are mainly responsible for comrades The comrades in charge of the disciplinary inspection and supervision team, the counsellors of the People's Bank of China, the heads of the inspection team, the main responsible comrades of various enterprises and institutions, related units and foreign institutions attended the meeting. Relevant comrades from the Central Organization Department, the Office of the Central Committee of Finance and Economics, the General Office of the State Council and the Audit Office were invited to attend the meeting.