This paper analyzes the relationship between monetary policy and small & micro business financing in China by using Granger causality test and the double logarithm linear regression model. Research results show that the adjustment of the deposit reserve ratio or benchmark lending rate by the central bank can cause the change of loans of small and micro businesses. The deposit reserve ratio of large financial institutions is negatively related with the loans of small and micro businesses. The deposit reserve ratio of small- and medium-sized fin...