The people's bank of China on September 30, issued a "about to pratt &whitney financial directional down must notice, the implementation of the 27 state council executive meeting on through a drop must to increase support for small micro enterprise development requirements.

Because of the changes in the conditions of directional reduction, most of the market views that the amount of liquidity released is equivalent to 1-1.5 times. Therefore, the sound of flood irrigation is rampant.

But according to our calculations, the actual volume of liquidity that can be released is either incremental or well below the expectations of most people.

As the people's bank of China said in response to a reporter's question, this orientation reduction is actually a policy extension and optimization of the past orientation.

In particular, the two levels of assessment are different.

The first one is a year before pratt &whitney finance loan balance or incremental proportion reached 1.5%, the deposit reserve rate of 0.5% can be adjusted on the basis of reference file (previously is related to agriculture, rural areas and farmers and small percentage increase in credit is 15% enjoy micro field, agriculture, rural areas and farmers and small micro examination separately);

Pratt &whitney the financial sector is the second leg before one year loan balance or incremental proportion reached 10%, the deposit reserve rate according to the principle of progressive on the basis of the first leg again by 1% (previously is agriculture, rural areas and farmers and small micro loan increment accounted for 50%, the balance of 30% enjoy, agriculture, rural areas and farmers and small micro examination separately).

Objectively, the ratio of the two standards is indeed lower, but more stringent on the scope of the loan.

Pratt &whitney is defined as the financial sector loans, single-family credit 5 million yuan the following small micro enterprise loans, individual and industrial and commercial door micro and small business owners, business loans, and farmers production and business operation, business guarantee, by inputting tent card poverty, student loans, etc.

From understanding the point of view, pratt & Whitney in the field of financial loans can be broadly classified as personal business loans to the private, individual and industrial and commercial door, small business owners, farmers loans are often such, student loan all have different classification criteria, the amount is less, temporarily ignored), brought to the small micro enterprise loans, and both need to meet the standards of below 5 million.

For most of the commercial Banks, 5 million is not only of microenterprise credit limit, also as the division standard of probability and the private, so in the personal business loan credit for more than 5 million, and brought to the line mostly in the form of more than 5 million small micro enterprise loans, conform to the conditions of the loan is not much, quite so sharply narrowed scope in the field of assessment of the loans.

In addition, for the first time the small peasant household loans and micro together on the inspection, optimized the previous inspection policy is calculated separately (ever), for those at the same time vigorously develop small and rural loan business of banking institutions.

And the intuitive view is that it is beneficial to the individual business loans (including small and small farmers loans in the area of personal loans) to the relatively high Banks.

After understanding the changes in the mechanism of the orientation reduction policy, we can estimate the amount of liquidity released by this directive.

Assessment of the relevant responsible person of the people's bank, according to the existing data, the directional drop must cover all large and medium-sized city commercial Banks, about 90% of the firm and about 95% of the county agricultural businesses, but for the extension of past policies, rather than parallel's new policy, so it has to enjoy the old policy orientation preferential bank, in 2018, since the implementation of the New Deal will not be repeated.