Chinese Central Bank Outlines Policy Focal Points for 2022, Calls for Financial System to Cede Profits to Real Economy


The People’s Bank of China (PBOC) has outlined its key focal points for policy work in 2022 at a press conference held on 18 January.

PBOC officials said that these key focal points would include:

  1. Maintaining stable growth in the total volume of money and credit. Comprehensive use of multiple monetary policy tools, maintenance of rationally ample liquidity, strengthening of the stability of growth in total credit volume, guiding financial institutions to vigorously expand the provision of credit, and maintaining basic correspondence between growth in the money supply and total social financing with nominal economic growth.
  2. Steady optimisation of the credit structure. Greater use of structured monetary policy tools, effective implementation of market-based monetary policy tools to support micro-and-small enterprises, effective use of emissions reduction support tools and specialist re-loans to support high-efficiency clean coal usage. Guiding financial institutions to increase credit growth in areas where credit growth has been slow, and engage in structural optimisation. Targeted and vigorous expansion of credit support vigour for key areas and weak linkages.
  3. Maintaining declines in the overall financing costs of enterprises. Improving the formation of market-based interest rates and transmission mechanisms, employing the efficiencies of reforms for the quoting of interest rates on the loan market. Stablisation of bank liabilities costs and driving the financial system to cede profits to the real economy.
  4. Maintain the basic stability of the renminbi exchange rate at a rationally balanced level. Enabling supply and demand to play a decisive role in the formation of exchange rates, and employing the role of exchange rates as an automatic stabiliser for adjustment of the macro-economy and the balance of payments.