China’s PBoC insisted that economy goals for 2020 can still be achieved in spite of the coronavirus outbreak, and pledged to have measures to ensure ample liquidity. Liu Guoqiang, Vice Governor of PBoC said “We’ll further release the long-term liquidity via multiple open market operations. And make targeted RRR cuts in appropriate time for banks that meet the requirement of releasing inclusive loans and serve the smaller firms.”
Xiao Yuanqi, the chief risk officer of the China’s Banking and Insurance Regulatory Commission emphasized “Support policies are mainly for smaller firms facing difficulties because of the virus outbreak, not those in difficult situations before. We’ll prevent non-performing companies from getting a free ride from the push, and prevent related moral hazard.”
