Price stability as the primary task of the central bank or to break the ice deposit insurance system

 (Reporter Suman Li) central bank yesterday revealed the contents of the annual session in 2011, identified four main tasks of the central bank this year, price stability is the first place. Meanwhile, the establishment of a deposit insurance system has also been incorporated into the current and future central bank main tasks, which means that the deposit insurance system after many years in the making or ice.

deposit insurance experts say the market interest rate to pave the way

deposit insurance system is a financial security system is by depository institutions pay insurance premiums by a certain percentage of deposits, the establishment of deposit insurance reserve fund, when the business crisis or bankruptcy occurs, the deposit insurance agency will provide financial assistance or directly to the depositors to pay part or all of the deposits.

pave the way for the interest rate market.

present, the interest rate market has been incorporated into The initial interest rate market in the United States each year up to 2 digits of bank failures in 1985 reached 3 digits.

Lu political commissar, said after the interest rate market pressure increases the profitability of financial institutions, performance will occur differentiation, some banks may also result in operating difficulties, the interest rate market need assistance system, deposit insurance is one of them.

central bank also said yesterday, and steadily push forward market-oriented interest rate forming mechanism of RMB exchange rate reform, interest rates of financial institutions will strengthen the assessment of pricing power, and guide its enhanced risk of pricing power.

controlling price hikes of the monetary conditions

in the central bank to determine the current and future major task, price stability was ranked the highest. The central bank said the overall level of price stability on the financial macro-control more prominent position, controlling price hikes of monetary conditions.

central bank said, continue to implement prudent monetary policy. The good mobility of the total gate, guide reasonable growth of money and credit, maintain a reasonable scale of social finance. According to current economic and financial situation and changes in foreign exchange, the integrated use of interest rates, deposit reserve ratio and open market operations and other price and quantity instruments in the banking system liquidity and reasonable moderate. Dynamic adjustment of the implementation of different measures for the reserve to guide steady moderate growth of money and credit.

Central University of Finance and Professor Guo Tian Yong, said economic growth in the first half of the current situation more optimistic, so the first half of this year inflation will be the main task of the overall macro environment is tight, in the second half may be based on changes in the economic growth rate for flexibility to adjust.