Mechingbao: There is still room for the increase in reserve requirement ratio

Author: Wang, China Oriental Asset Management Company's former president Mechingbao, said at the 2011 Boao Forum, according to the current liquidity and inflation, the interest rate of deposit reserve has a certain increase in space. He believes that the solution to liquidity problems should be more use of reserve ratio, prudent or less use of deposit and loan interest rates.　　Because the interest rate has a direct relationship with the cost-driven inflation, its adjustment directly affects every enterprise, and the deposit reserve ratio directly affects the scale, speed and level of bank loan, and the influence to the enterprise is indirect. Mechingbao that the use of reserve ratio tools will have a certain impact on the level of bank profitability, but the impact is the bank can afford, because the current level of bank profitability is very high. The use of reserve requirement ratio can promote the development of direct financing methods such as corporate debt.　　Direct financing involves revolutionary changes in the financial system as a whole, and he believes that the proportion of direct financing in the future should be further increased and that the debt market should be the most studied because it is a way that both listed companies and unlisted companies can use. When it comes to the issue of affordable housing, Mechingbao that the increase in guaranteed housing is not a positive correlation with the increase of local debt. If local governments operate well, guaranteed housing does not necessarily cause local debt to rise. To solve the financial bottleneck of the affordable housing, we can use the local financing platform or bank financing, and can also introduce the real estate developers to the contract construction through preferential policies.