Research on the Regulatory Effects of Directional Reduction of the Deposit Reserve Ratio to Targeted Enterprises
The targeted cuts to required reserve ratios policy is an innovative measure by the Central Bank of China aimed at achieving"capital infusion"and"precise drip irrigation"to better serve the real economy.The paper examines the effects of this policy using micro-enterprise data from China's A-share and New Third Board markets,covering the period from the first quarter of 2010 to the fourth quarter of 2022.Adopting a"counterfactual"perspective,a propensity score matching-double difference(PSM-DID)model is employed to assess the impact of targeted reserve requirement ratio cuts on agricultural enterprises and small and medium-sized enterprises(SMEs),focusing on credit financing costs and firm performance.Our findings indicate that:firstly,the targeted reserve requirement ratio cuts significantly reduce credit financing costs and enhance firm performance for agricultural enterprises and SMEs.Secondly,regarding corporate ownership heterogeneity,while the policy does not significantly affect the credit costs and performance of state-owned agricultural and small enterprises,it substantially lowers the credit financing costs for non-state-owned agricultural and small enterprises,thereby mitigating credit discrimination by commercial banks.Thirdly,the policy effectively reduces credit financing costs for agricultural enterprises and SMEs across eastern,central,and western regions of China,but positively impacts the performance of these firms only in the eastern region.The central bank should carefully consider the timing,intensity,and frequency of implementing targeted reserve requirement ratio cuts,improve the dynamic loan assessment mechanisms of financial institutions,and manage potential fund imbalances that could arise from targeted but"unreasonable"support.
万方数据
维普
