China's monetary policy will be "neither tight nor loose," a deputy central bank governor said Saturday, adding that the aim is to ensure liquidity remains basically stable.
Unconventional monetary policies have limitations and structural reform will play an increasingly important role in the government's policy tools mix, according to Chen Yulu, deputy governor of the People's Bank of China (PBOC).
The development of the financial sector should serve the public instead of minority elites, and enterprises in the real economy should not stray blindly into financial businesses, Chen pointed out.
China has been improving the Macro Prudential Assessment (MPA) mechanism to guard against systemic financial risks since 2009 and has become one of the leading countries in this field, Chen said.
The rapid development of fin-tech demands improvement of China's financial infrastructure, including payment, credit checking and financial statistics, and the PBOC will set related regulations to guard national financial security, Chen added.
