Zhou: Banking should be prepared for flexible changes in monetary policy

⊙ reporter Miaoyan 0 Editor Heng Road celebrates Peking University professor, the Central Bank monetary Policy Committee member Zhou 27th attends the small and Medium Bank syndicated Loan Summit Forum, said that the negative interest rate is disadvantageous to the effective use of capital, and will cause the whole price situation to complicate. He cautioned that the negative interest rate environment is a problem to be addressed this year.　　The banking sector should be prepared for flexible changes in monetary policy this year and the next two years. Zhou that the negative interest rate environment will lead to extremely strong credit demand, but at the same time will make the bank's asset quality is facing great challenges.　　He points out that if asset quality deteriorates, it will not be long before it is reflected in the book. To this end, he believes that this year, the next two years should focus on tackling the problem of excessive currency delivery in response to the "protection of eight". There should be moderate flexibility, including exchange rates and interest rates, to adjust to market conditions. "Macro-policies should be based on macro situations, so be prepared for possible changes," he said. "Zhou said.　　He pointed out that economic growth should not be a simple monetary phenomenon, credit-fuelled growth is a "currency illusion", which is not conducive to the effective use of national savings, the quality of growth is difficult to improve. Interest rate hikes are often interpreted by the market as leading to a fall in bank profits. But Zhou that this view is incorrect. He pointed out: "Can not think the interest of a rise in profits will certainly decline, this is a static mode of thinking." And the dynamic way of thinking should not be so. In the changing environment, can find good projects, can make good business, this is China's excellent financial institutions. Zhou that China has great potential in improving the efficiency of the national economy, especially in terms of capital efficiency. In this sense, overly loose macro policies are detrimental to exploiting these potential. "There are a lot of potential opportunities in China, not just low interest rates to do business." He points out that for institutions that are accustomed to low interest rates, it may have a big impact, but there will always be good business for other companies.