Second, measures were taken to reform the credit plan management system which featured “centralized management on deposits and loans”, eliminate caps on credit scales, gradually establish the M2 money supply as the intermediate target of monetary policy, and develop in due time indicator of aggregate financing to the real economy (AFRE) as an important source of reference for monetary policy.
Third, the monetary policy instruments including required reserve, central bank lending, central bank discount and open market operation have been created and improved. In order to meet the actual demands of economic and financial development, monetary policy tools such as open market short-term liquidity adjustment instruments have been launched in succession. Monetary policy macro adjustment has been strengthened.