Home>News Center>Bizchina

Steady monetary policies to continue
Updated: 2004-11-17 09:57

The People's Bank of China said Tuesday that in the last quarter of this year it will continue to pursue steady monetary policies and make efforts to rationalize its credit structure.

In a report published Tuesday on monetary policies in the firstthree quarters, the central bank says it will employ various monetary policy tools to ensure financial institutions' capital demands for normal payment, clearing and loans, support rational credit growth and maintain a basically stable market interest.

The central bank will also guide commercial banks to continue their support for projects that conform to the state's industrial policies and market entry conditions. Credit support will continueto be given to agriculture, small and mid-sized enterprises and the consumption sector, as well as education and employment, in order to promote credit and industrial restructuring.

The report says the bank will steadily push forward the marketization of interest rates, and guide financial institutions to rationally design their interest rates, in order to increase the distribution efficiency of credit capital. At the same time, efforts will be made to speed up the reform of China's financial institutions.

The central bank is studying the establishment of a deposit insurance system and a "timely and effective" exit mechanism for financial institutions. Measures will also be taken to foster institutional investors in the financial market, according to the report.

The report reiterates that the system for determining the RMB exchange rate will be further improved, the administration of foreign exchange will be reinforced and improved and the RMB exchange rate will remain "basically stable at a rational and balanced level."

  Story Tools  
  Related Stories  
Central bank enhances monetary policy