China to Increase Credit Supply and Informal Financing in 2023, PBOC says

The People’s Bank of China (PBOC) held a press conference on financial statistics in the first quarter of 2023 on April 20.

Ruan Jianhong, director of the survey and statistics department and spokesman of the PBOC, said at the meeting that the financial operation in the first quarter of this year was generally stable, with reasonable and sufficient liquidity, and the credit structure continued to be optimised.

The financing cost of the real economy has declined steadily, and the strength of financial support for the real economy has increased significantly. The liquidity is reasonably sufficient, and the financial aggregate has grown steadily.

In terms of structure, the credit structure continued to be optimised to serve the high-quality development of the economy.

Since the beginning of this year, the PBOC has continued to play the precise guiding role of structural monetary policies, guiding financial institutions to increase financial services in areas such as inclusive finance and technological innovation.

From the perspective of interest rates, the comprehensive financing cost of the real economy has declined steadily, and the effectiveness of interest rate reform in the loan market has continued to be released.

In the next stage, a prudent monetary policy must be precise and powerful, and the continuous support for the real economy should be stabilised. Credit supply and social financing scale growth will remain stable in 2023.