“What would God do if he is the central bank”?

1)About central bank of china

Headquarters Beijing and Shanghai

Coordinates 39°54′24″N 116°21′14″
Established 1 December 1948; 70 years ago
Ownership State Council of the People's Republic of
China
Party Secretary Guo Shuqing
Governor Yi Gang
Central bank of People's Republic of China
Currency Renminbi (RMB)
CNY (ISO 4217)
Reserves US$3.21 trillion (November 2017)
Reserve requirements 17%
Bank rate 4.3%
Interest on reserves 3.5%
Website www.pbc.gov.cn

The objective of the monetary policy is to maintain the stability of the value of
the currency and thereby promote economic growth.
2)Reserve requirement ratio
 The People's Bank of China (PBOC) said it would cut the reserve
requirement ratio (RRR) by 50 basis points (bps) for all banks, with an
additional 100 bps cut for qualified city commercial banks. The RRR for
large banks will be lowered to 13.0%.
 If God is the central bank we can expect another RRR cut of 50 bps by
the end of this year as it releases billions of liquidity.And can expect
China to announce more policy easing measures soon as the world's
 second-largest economy comes under growing pressure from escalating
U.S. tariffs and sluggish domestic demand
3) One year LPR
 China cut its new one-year benchmark lending rate for the second month
in a row to 4.20%, as the central bank seeks to guide borrowing costs
lower for an economy hit by the Sino-U.S. trade war. The largely-
expected reduction in the one-year Loan Prime Rate (LPR) came after the
People’s Bank of China (PBOC) lowered banks’ reserve requirements . It
also comes shortly after the Federal Reserve cut U.S. interest rates by 25
basis points.
The one-year LPR dipped to 4.20% at its monthly fixing , 5 bps lower
than 4.25% in August. However, the five-year LPR was unchanged at 4.85%

 The central bank is also widely expected to cut one or more of its key
policy interest rates in mid-September -- for the first time in four years --
as it works to reduce corporate funding costs.
 The problem is not a lack of credit -- the PBOC has injected generous
amounts of liquidity -- but weakening business and consumer confidence
as the trade war drags on. That has weighed on activity from
manufacturing and investment to retail sales.
 If god is the central bank , the steps will be taken to put an end to the
trade war soon, as there is a huge damage to the economy due to this.
4)GOLD RESERVES
 China's central bank has plowed funds into gold over the last 10 months,
adding over 100 tons of the precious metal to its reserves. China's gold
reserves rose by 5.9 tons in September, bringing the total added since
December 2018 to over 100 tons. Gold is often seen as a haven asset,
making it a popular choice for investors during times of uncertainty.
 If god is the central bank , it may contain more gold reserves and
managing gold reserves as it stabilizes the yuan more.
5)China exposure

 If god is the central bank, necessary measures are taken to improve the
exposure of china to world as it invariably leads to increase in the trade.
 6)Regulation of payment firms
 In mid-2018, the Chinese authorities sharply tightened their regulation of
payment firms, seemingly bringing to an end an ‘easy money’ era, while
also restricting the ability of third-party payment providers to profit from
earning interest on client funds. The shift in stance came after years of
loose oversight that facilitated explosive growth in the country’s payment
system.

 If god is the central bank, the central bank might not tightened the
regulation of payment firms. Making payment and settlement rules in
collaboration with relevant departments and ensuring normal operation of
the payment and settlement systems; This payment system leads to
global competitiveness.

7)Extension of credit line for SMBs

 People bank of china Extends Credit Line for Small and Medium-Sized
Banks by RMB50 Billion to Increase Credit Supply to SMBs and Private
Enterprises. In this way, liquidity will be injected into the targeted sector
and the cost of social financing will be lowered. The credit line targeting
SMBs will reach RMB369.5 billion after the raise.
 If god is the central bank, it could have extended credit line for small and
medium sized banks more to increase credit supply and to lower the
financing costs. And step up efforts to support SMBs-targeted lending by
strengthening surveillance and evaluation of the use of funds. The central
bank will emphasize on targeted liquidity injection to support the SMBs
and private enterprises.
Conclusion;
If god is the central bank, the people bank of china will undertake further
easing/stimulus measures to bolster confidence and to stabilise growth because
growth could slow further on escalating US-China trade tension
The people bank of china Prevents and mitigate systemic financial risks to
safeguard financial stability which will play an more important role in China's
macroeconomic management Maintaining the Renminbi exchange rate at
adaptive and equilibrium level.
The central bank could have extended credit line for small and medium sized
banks more to increase credit supply and to lower the financing costs
If god is the central bank, the central bank might not tightened the regulation of
payment firms.And necessary measures are taken to improve the exposure of
china to world as it invariably leads to increase in the trade. the central bank
may contain more gold reserves and managing gold reserves as it stabilizes the
yuan more.
If god is the central bank , the steps will be taken to put an end to the trade war
soon, as there is a huge damage to the economy due to this.