Does The Targeted Reduction In The Reserve Requirement Ratio Stimulate Corporate Investment

After the 19th National Congress,China’s central bank continuously optimizes the regulatory model of monetary policy.As China’s economy has entered the New Normal,its economic development has begun to pursue the principle of "keeping the word stable and making progress while maintaining stability",with remarkable achievements in economic development.However,in recent years,China is facing triple pressures of demand contraction,supply shocks,and weakening expectations.Stimulating potential domestic demand in the market is a top priority,the traditional aggregate monetary policy is difficult to cope with the complex situation in the current market,and there is an urgent need for a stable and flexible structural monetary policy to maintain reasonable and sufficient liquidity.This has led to a cautious risk appetite among financial institutions in the banking industry,and highlighted the difficulties and high costs of loans for agricultural enterprises.In this context,the People’s Bank of China attaches more importance to economic structural issues and gradually explores and attempts to structural monetary policy.The directional reduction is the precise guidance policy for my country’s economy to entered a new normal to support the development of agricultural enterprises and small and micro enterprises,and alleviate its financing constraints.Essence From April 25,2014,the central bank has implemented a targeted reduction policy many times to guide commercial banks to increase credit offering of agricultural enterprises and small and micro enterprises in order field.At present,the research on the policy effect of the academic community has not yet concluded the consensus.Therefore,the research on the stimulus effect of agricultural enterprises’ investment in agricultural enterprises not only provides theoretical basis for my country’s monetary policy,but also has certain practical significance.Based on the retrospective and analysis of the relevant documents of the directional reduction and structural monetary policy,this article studies the impact of macro monetary policy on micro-enterprises,through empirical inspection of the policy effect on agricultural enterprises,and proposes policy suggestions based on the research conclusions.Essence First of all,the conduction method of targeted reduction is clarified,and how the central bank affects agricultural enterprises through targeted reduction.In terms of research ideas,empirical testing the incentive effect and action mechanism of the directional reduction in agricultural enterprise investment,and further expanded research from the perspective of mechanism analysis and heterogeneity analysis.The research results show that the implementation of the targeted reduction monetary policy has a significant positive effect on the investment of agricultural enterprises.After a series of stable testing,the research conclusion is still established;second,the mechanism analysis shows that the directional reduction policy is pairing.The incentive effect of agricultural enterprises’ investment is achieved by improving corporate credit acquisition and reducing credit financing costs;third,heterogeneity analysis shows that the impact of targeted reduction on the investment of agricultural enterprises is due to the nature and development level of the ownership and development level.Differential,the response of the investment of state-owned enterprises,high investment opportunities and small enterprises to the directional reduction policy is stronger.Based on theoretical analysis and the above-mentioned research conclusions,this article put forward policy opinions: First,the government should strengthen the guiding role of targeted reduction policies,improve the assessment mechanism of targeted reduction,and strengthen continuous supervision of the flow of funds,effectively enhance the obtaining credit resources of agricultural enterprises second,formulate differentiated policies in accordance with the types of different enterprises,further refine and adjust the target areas of target reduction,and adapt to local conditions and implement policies for enterprises;The collaborative effect of policies can maximize policy benefits.