Empirical Research On The Effect Of Targeted RRR Cuts

In 2014,the People’s Bank of China launched China’s first targeted RRR reduction monetary policy.The meaning of targeted RRR reduction is that it directionally supports agricultural enterprises and small and micro enterprises in obtaining credit resources,which has a great guiding role in China’s structural adjustment,production promotion,and employment.The research on the effect of the implementation of targeted RRR cuts has not reached a consistent conclusion,and the research on the monetary policy of targeted RRR cuts has strong practical and theoretical significance.The monetary policy of targeted RRR cuts is transmitted through credit channels.It first applies the policy to commercial banks,and then the banks release the credit resources released by the policies to the target enterprises.The effect of the implementation of the targeted RRR cut is closely related to the bank’s choice of credit behavior.Based on the data of listed companies on the main board,this paper uses the double difference method to test the guiding effect of the targeted RRR reduction policy on agricultural enterprises’ credit resources and the guiding effect of the new investment and operating income of agricultural enterprises;The effect of stock price changes;tested the performance of real estate companies as a "fund depression" in the implementation of monetary policy;the triple difference method was used to test the effect of targeted reduction of credit on agricultural zombie and non-zombie enterprises.The empirical results show that China’s policy of targeted RRR cuts did not increase the credit availability of agricultural enterprises,nor did it increase the new investment of agricultural enterprises,but it did increase the operating income and stock price of agricultural enterprises.As a "fund depression",real estate enterprises are not conducive to the flow of bank funds to agricultural enterprises.After the implementation of the targeted RRR cut,agricultural zombie enterprises have absorbed more credit resources than agricultural non-zombie enterprises.The innovative point of this paper is to verify that the policy of targeted RRR cuts has promoted the increase of the operating income of agricultural enterprises,and found that real estate companies and zombie enterprises have significantly improved the availability of credit before and after the implementation of targeted RRR cuts.Based on the empirical results,this article believes that the directional downward standardization has played a certain guiding effect,and China should continue to improve the directional downward standardization policy.At the same time,the directional downward standardization policy needs the support of other policies or measures to truly achieve its effect.