Sheng Songcheng's "Balance Treasure And Deposit Reserve Management" Has Aroused Great Repercussions.

Recently, Central Bank Sheng Songcheng, director of the survey and Statistics Division, published an academic article entitled "balance treasure and deposit reserve management". He suggested that the deposit reserve fund should be managed by the money market funds, including the balance of treasure, in order to narrow the regulatory arbitrage space, "make the competition environment of the financial market more fair and reasonable, and make the transmission of monetary policy more effective". In Sheng Songcheng's view, the increase in the amount of funds raised by the balance of treasure means a decrease in the general deposits of banks under the reserve management. The balance of the funds deposited in the bank does not reserve the reserve. Theoretically, this part of the funds can be indefinitely derived and can create money supply infinitely, thus affecting the effectiveness of the monetary policy control.

This view of Sheng has aroused great repercussions. In March 20th, Wu Xiaoqiu, assistant president of Renmin University of China, publicly bombed this view. "There is no money multiplier problem in balance treasure, so it is a bit of a layoff to raise the deposit reserve."

In March 20th, Sheng song responded again. Why should the balance fund of the balance fund should pay the deposit reserve? Sheng Songcheng said that if we observe the process of money creation, the reserve ratio will affect the money multiplier and money supply.

Let me give you a simple example: suppose a family. Bank Get 100 yuan deposit, deposit reserve rate 20%, which means that the bank can only lend 80 yuan, the higher the deposit reserve ratio, the less money the bank can lend, the less money the enterprise will get, and the less money it will create in the bank.

Balance treasure and other currencies fund The emergence of this process has changed this process. The depositor transferred the 100 yuan originally deposited into the bank to purchase the balance treasure, that is, the Celestica Fund Monetary Fund. In the end, the Celestica fund again deposited into the bank in the form of 90%-95%'s interbank deposit, and the bank loaned much more money than the original 80 yuan.

Since the balance of the money deposited in the bank does not reserve the reserve, theoretically, this part of the fund can be derived indefinitely and can create money supply infinitely, thus affecting the effectiveness of monetary policy regulation; the consequences are three: first, it can create money infinitely; second, it does not pay the deposit Plus + interest rate control, making the balance treasure and banks in an unfair competition state; and third, it boosts the overall interest rate level rise.

In response to questions from the outside world, Sheng sung Cheng said in March 20th that he hoped the experts would read his articles and comment again.

Sheng Songcheng said that the theoretical basis of securities investment funds is to spread risk through portfolio and obtain relatively high return on investment on the basis of controllable risk. Because it is not subject to the deposit reserve management, the balance treasure does not need to consider the complex investment portfolio. Instead, it will invest 95% of its capital in bank deposits and enjoy risk-free income and make deposits in the name of the fund.

The Chinese Monetary Fund is very different from that of Europe and the United States. Since the 70s of last century, the United States began to study the reserve management of money market funds. The reason why it has not been implemented is also simple: unlike the 80% of China's Monetary Fund's investment in bank deposits, most of the asset allocation of the US monetary fund is to buy short-term treasury bonds. Of course, there is no money creation problem.

" Yu Bao The entry of funds into the banking system in the form of agreement deposits involves money creation and money multiplier. Without paying the reserves, this part of the fund can theoretically create money infinitely, and the monetary multiplier can become infinite. Sheng Songcheng emphasized.