Research On The Impact Of Targeted RRR Cuts On Corporate Financing Constraints

Since the reform and opening up,China’s small and micro enterprises,agriculture,rural areas and other small and medium-sized enterprises have developed rapidly and have become an indispensable part of China’s economic system.However,under the current background of the global economic recovery difficulties and the domestic economy facing greater downward pressure,the development of small and medium-sized enterprises is difficult and difficult.Therefore,starting from April 25,2014,the People’s Bank of China implemented a targeted regulation policy through the targeted reduction of the deposit reserve ratio,with a view to achieving "directional drip irrigation",highlighting and increasing support for agriculture and small and micro enterprises 。 helping the real economy control financing costs and reduce financing restrictions.Whether this new policy can really play its intended role has yet to be verified.On this basis,in-depth exploration of the implementation effect of the targeted RRR cut,especially the mitigation of the financing constraints of targeted enterprises,is conducive to improving the accuracy of monetary policy and further improving its implementation effect.Based on the micro data of A-shares and NEEQ companies,this paper uses the double difference method(DID)to test whether the implementation of targeted RRR cuts has a mitigating effect on the financing constraints of “weak sectors” such as agriculture and small and micro enterprises.The results show that after the implementation of the targeted RRR cut,the financing constraints of all sample companies have been eased,and the improvement of agriculture and small and micro enterprises is more significant than that of non-agricultural and large enterprises.In the future,we must start with the five aspects of improving the effectiveness of the targeted RRR cut policy,creating a dynamic evaluation mechanism,improving the systemic and transparency of the policy,lowering lending standards,and establishing a supporting policy system to maximize the goal of monetary policy,create financing facilities for small and micro enterprises and make the blood of financial services to the real economy more smooth.