The latest monetary policy execution report released by the Chinese central bank calls for financial institutions to provide greater support to automation.
The 2018 Q4 China Monetary Policy Execution Report (2018年第四季度中国货币政策执行报告) released by the People’s Bank of China on 21 February directly addresses the issue of industrial automation in China, which it says faces a range of challenges including a lack of innovation when it comes to core technologies, as well as dependence upon imports for key components including precision reducers, servo motors and controllers.
The Report says that the next step will be to “encourage financial institutions to drive the innovative development of financing, leasing and pledging operations, and expand financial support for the field of industrial robots.”
The report also calls for the “firm suppression of hidden debt growth, the appropriate resolution of outstanding bank debt levels,” and “further employing the active role of credit and asset securitisation to active existing [debt] stock.”
PBOC makes reference for the first time to six large-scale state-owned banks in the new report, including Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, the Industrial and Commercial Bank of China and the Postal Savings Bank of China.
According to the report the benchmark reserve ratio for financial institutions in China is 13.5% for large-scale banks, 11.5% for small and medium-sized commercial banks and 8% for county-level rural village financial institutions.