What is the development history of the People's Bank of China?

The People's Bank of China was formed on December 1, 1948 on the basis of the merger of North China Bank, Beihai Bank and Northwest Farmers Bank. In September 1983, the State Council decided that the People's Bank of China would exclusively perform the functions of the national central bank. On March 18, 1995, the Third Session of the Eighth National People's Congress passed the Law of the People's Republic of China on the People's Bank of China. At this point, the People's Bank of China as the central bank was legally established. \x0d\The history of the People's Bank of China can be traced back to the Second Civil Revolutionary War. On November 7, 1931, at the "First National Congress of Soviets" held in Ruijin, Jiangxi, a resolution was passed to establish the "State Bank of the Soviet Union of China" (referred to as the State Bank of the Soviet Union) and issue currency. . From the Agrarian Revolution to the Anti-Japanese War until the eve of the birth of the People's Republic of China, the people's political power was divided into areas that could not be connected to each other. Each base area has established a relatively independent and decentralized bank in the base area, and each issues currency that circulates within the base area. On December 1, 1948, based on North China Bank, Beihai Bank and Northwest Farmers Bank were merged to form the People's Bank of China in Shijiazhuang City, Hebei Province, and issued RMB, becoming the central bank and central bank after the founding of the People's Republic of China. Fiat currency. \x0d\ In the more than fifty years since its establishment, especially since the reform and opening up, the People's Bank of China has undergone tremendous and profound changes in terms of its system, functions, status, and role. \x0d\ 1. The establishment of the People's Bank of China and the establishment of the national banking system (1948--1952) \x0d\ On December 1, 1948, the People's Bank of China was established in Shijiazhuang City, Hebei Province. The People's Government of North China issued an announcement on the same day that the RMB issued by the People's Bank of China will be uniformly circulated in the three regions of North China, East China, and Northwest China. All public and private payment and all transactions will be based on RMB. In February 1949, the People's Bank of China moved from Shijiazhuang City to Peiping. In September 1949, the Chinese People's Political Consultative Conference passed the "Organic Law of the Central People's Government of the People's Republic of China", which incorporated the People's Bank of China into the series of units directly under the Government Affairs Council, accepted the guidance of the Financial and Economic Commission, and maintained close contact with the Ministry of Finance. It is given the functions of a national bank and is responsible for issuing national currency, managing national treasury, managing national finance, stabilizing financial markets, and supporting economic recovery and national reconstruction. \x0d\ During the period of national economic recovery, the People's Bank of China, under the unified leadership of the Central People's Government, set out to establish a unified national banking system: First, establish an independent and unified monetary system to make the RMB the standard currency circulating within the country, in line with various economies. Departments should work together to control inflation; the second is to quickly build branch offices, form a national banking system, take over bureaucratic capital banks, and rectify the private financial industry; the third is to implement financial management, divert funds, crack down on the black market of gold, silver, and foreign currencies, and cancel the licenses of foreign banks in China. Privileges, prohibiting the circulation of foreign currencies, and unified management of foreign exchange; fourth, carrying out deposits, loans, exchange and foreign exchange businesses, promoting urban and rural material exchanges, and preparing for economic construction. By the end of the national economic recovery period in 1952, the People's Bank of China, as the national bank of the People's Republic of China, established a national vertical leadership organizational system; unified the issuance of RMB, and gradually accepted the currency issued by the liberated areas, all of which were clear The currency issued by the Kuomintang government was exchanged within a time limit, and the RMB soon became the unified currency of the country; unified management of various financial institutions was implemented. The People's Bank of China makes full use of currency issuance and monetary policy, implements cash management, carries out "collecting deposits, building treasury, and flexible allocation", and uses discounted savings and deposit interest rates to regulate market currency supply and demand, reversing the financial market situation in the early days of the founding of New China. The chaotic situation finally put an end to the two decades of hyperinflation left by the Kuomintang government. At the same time, in accordance with the policy of "balancing public and private interests, benefiting both labor and capital, mutual assistance between urban and rural areas, and internal and external exchanges", we cooperated with the adjustment of industry and commerce, flexibly allocated funds, supported the rapid growth of the state-owned economy, and moderately increased loans to the private economy and individual economy; It has facilitated the exchange of materials between urban and rural areas and made significant contributions to the stability of the RMB value and the recovery and development of the national economy.

\x0d\ 2. The National Bank during the Planned Economic System Period (1953--1978) \x0d\ In the unified planning system, the top-down People's Bank system became the country's mechanism for absorbing, mobilizing, concentrating and allocating credit funds. basic means. With the acceleration of socialist transformation, the private financial industry has been integrated into the public-private partnership banking track, forming a centralized and unified financial system. The People's Bank of China, as the national financial management and currency issuance agency, is both a state agency for financial management and a comprehensive banking business of the National Bank. \x0d\ In order to adapt to the highly centralized banking system, a centralized and unified comprehensive credit plan management system has been established since 1953. That is, the country's credit funds, whether in terms of source of funds or use of funds, are all under the unified control of the Head Office of the People's Bank of China. Implementing the management method of "universal deposits and unified loans", bank credit plans are integrated into the national economic plan and become an important means for the country to manage the economy. The highly centralized national banking system provides comprehensive financial supervision and services for large-scale economic construction. \x0d\ The People's Bank of China is responsible for organizing and regulating currency circulation, operating various credit businesses in a unified manner, and has comprehensive reflection and currency supervision functions in the implementation of national plans. Banks provide over-quota working capital loans, seasonal loans and a small amount of overhaul loans to state-owned enterprises, provide partial production working capital loans to the urban and rural collective economy, individual economy and private economy, and provide production loans and ration loans to poor farmers in rural areas. and other life loans. This system in which long-term funds belong to the treasury, short-term funds belong to banks, free funds belong to the treasury, paid funds belong to banks, fixed-amount funds belong to the treasury, and excess funds belong to banks, lasted until 1978. Although there were several changes during the period, the basic pattern remained Not much has changed. \x0d\ 3. Transition from the State Bank to the Central Bank System (1979--1992) \x0d\ In January 1979, in order to strengthen the support of the rural economy, the Agricultural Bank of China was restored. In March of the same year, in order to adapt to the new situation of opening up to the outside world and the development of international financial business, the system of the Bank of China was reformed, and the Bank of China became a nationally designated professional foreign exchange bank; at the same time, the State Administration of Foreign Exchange was established. Later, the domestic insurance business was restored and the People's Insurance Company of China was re-established; trust investment companies and urban credit cooperatives were also established in various places, and a situation of diversified financial institutions and financial businesses emerged. \x0d\ With the growing economy and the increase in financial institutions, there is an urgent need to strengthen the unified management and comprehensive coordination of the financial industry. The People's Bank of China will exclusively assume the responsibilities of the central bank, which has become an urgent issue for improving the financial system and better developing the financial industry. In July 1982, the State Council approved the report of the People's Bank of China, further emphasizing that "the People's Bank of my country is the central bank of our country and a national agency that uniformly manages the national finance under the leadership of the State Council." This was the starting point for the establishment of a specialized central bank. Institutional preparations. \x0d\ On September 17, 1983, the State Council made a decision that the People's Bank of China would exclusively exercise the functions of the central bank and specified 10 responsibilities of the People's Bank of China. From January 1, 1984, the People's Bank of China began to exclusively perform the functions of a central bank, focusing on research and implementation of national financial macro-decisions, strengthening the control of total credit and the adjustment of funds of financial institutions to maintain currency stability; at the same time The Industrial and Commercial Bank of China was newly established, and the industrial and commercial credit and savings businesses previously undertaken by the People's Bank of China were professionally operated by the Industrial and Commercial Bank of China; the business of branches and branches of the People's Bank of China was under vertical leadership; the Board of Governors of the People's Bank of China was established as a coordinating decision-making body; a deposit reserve system was established and the central bank’s lending system to specialized banks, preliminarily determining the basic framework of the central bank system. \x0d\　In the early days when the People's Bank of China exclusively exercised its functions as a central bank, with the deepening of the national economic system reform and rapid economic development, in order to adapt to the emerging needs of a variety of financial institutions, multiple financing channels and multiple credit instruments, the People's Bank of China Continuously reform mechanisms, invigorate finance, develop financial markets, and promote financial system innovation. The People's Bank of China strives to explore and improve the means and methods of macro-control. On the basis of improving planned control means, it gradually uses interest rates, deposit reserve ratios, central bank loans and other means to control the supply of credit and money, in order to achieve "macro-economic control". The effect of "control, micro-revitalization, and seeking survival while maintaining stability" has initially cultivated the ability to use monetary policy to regulate the economy in the process of stopping "credit expansion" and "economic overheating" and promoting economic structural adjustment.

\x0d\ 4. Gradually strengthen and improve the modern central bank system (1993 to present) \x0d\ In 1993, in accordance with the State Council's "Decision on Financial System Reform", the People's Bank of China further strengthened its financial regulation, financial supervision and financial service responsibilities. Transfer policy business and commercial banking business. \x0d\ On March 18, 1995, the National People's Congress passed the "Law of the People's Republic of China on the People's Bank of China", which established the status of the People's Bank of China as the central bank in the form of national legislation for the first time, marking the central bank system Moving towards legalization and standardization is an important milestone in the construction of the central bank system. \x0d\ In 1998, in accordance with the deployment of the Central Financial Work Conference, the management system of the People's Bank of China was reformed, provincial branches were abolished, and cross-provincial branches were established. At the same time, the Party Committee of the People's Bank of China system was established to implement vertical leadership over party relations and vertical management of cadres. . \x0d\ In 2003, in accordance with the "Opinions on Deepening the Reform of Administrative Management Systems and Institutions" reviewed and approved by the Second Plenary Session of the 16th Central Committee of the Communist Party of China and the Institutional Reform Plan of the State Council approved by the First Session of the Tenth National People's Congress, the People's Bank of China's control over banks, The regulatory functions of financial asset management companies, trust investment companies and other deposit-taking financial institutions were separated and integrated with the relevant functions of the Central Financial Working Committee to establish the China Banking Regulatory Commission. In September of the same year, the Central Institutional Establishment Committee formally approved the People’s Bank of China’s “three determinations” adjustment opinions. On December 27, the Sixth Meeting of the Standing Committee of the Tenth National People's Congress reviewed and approved the "Law of the People's Republic of China on the People's Bank of China (Amendment)". \x0d\After the adjustment of relevant financial supervision responsibilities, the new functions of the People's Bank of China are officially stated as "formulating and implementing monetary policies, maintaining financial stability, and providing financial services." At the same time, it is clearly defined: "The People's Bank of China is a department of the State Council and is the The Central Bank of the People's Republic of China is a macro-control department that formulates and implements monetary policies, maintains financial stability, and provides financial services under the leadership of the State Council. "This change in functions is concentrated in "one strengthening, one transformation and two. increase". \x0d\　"One strengthening", that is, strengthening the functions related to the formulation and implementation of monetary policy. The People's Bank of China should vigorously improve the level of formulating and implementing monetary policies, and flexibly use various monetary policy tools such as interest rates and exchange rates to implement macro-control; strengthen the research and formulation of money market rules, and strengthen the supervision of financial markets such as money markets, foreign exchange markets, and gold markets. Supervision and monitoring of the market, paying close attention to the correlation channels, relevant policies and risk control measures between the money market and the real estate market, securities market, and insurance market, and unblocking the monetary policy transmission mechanism. \x0d\　"One conversion" means changing the way of implementing macro-control of the financial industry and preventing and resolving systemic financial risks. In the past, it was mainly through direct control methods such as approval of the establishment of financial institutions, business approval, senior management qualification review and regulatory guidance, etc., to monitoring the overall risks of the financial industry, financial holding companies and cross-financial instruments. and assessment, prevent and resolve systemic financial risks, and maintain national economic and financial security; transform into comprehensive research and formulation of relevant reform and development plans and opening-up strategies for the financial industry, and promote the three major industries of banking, securities, and insurance in accordance with my country's commitment to joining the WTO. Coordinated development and opening up, improving the international competitiveness of my country's financial industry and safeguarding national interests; transforming it into strengthening the research and formulation of policies supporting foreign exchange management to prevent the impact of international capital flows. \x0d\　"Two additions", that is, adding two functions: anti-money laundering and management of credit reporting industry. In the future, the People's Bank of China will organize and coordinate the national anti-money laundering work, guide and deploy anti-money laundering work in the financial industry, assume the responsibility of anti-money laundering fund monitoring, and participate in relevant international anti-money laundering cooperation. The People's Bank of China manages the credit reporting industry and promotes the construction of a social credit system. \x0d\　These new changes have further strengthened the People's Bank of China's important role as my country's central bank in implementing financial macro-control, maintaining currency stability, promoting sustainable economic growth, and preventing and defusing systemic financial risks. With the continuous improvement of the socialist market economic system, the role of the People's Bank of China as the central bank in the macro-control system will become more prominent. Facing more arduous tasks and more significant responsibilities, the central bank must have a broader vision, broader thinking, and a higher footing in performing its new responsibilities.

In particular, we must vigorously strengthen the functions related to the formulation and implementation of monetary policy. We must not only strengthen the regulation, supervision and monitoring of financial markets such as the currency market, foreign exchange market, and gold market, but also pay close attention to the organic linkage of the financial market system from the perspective of The operation status and risk status of other types of financial markets, and comprehensive and flexible use of various monetary policy tools such as interest rates and exchange rates to implement financial macro-control. From the perspective of maintaining national economic and financial security and realizing and safeguarding national interests, we must study and plan major strategic issues related to the reform, development, and stability of our country's entire financial industry. At present, my country's economy is becoming more and more market-oriented, the environment faced by monetary policy decisions is becoming increasingly complex, the financial risks accumulated over a long period of time in the financial industry are still relatively heavy, and the tasks of reform and restructuring are very arduous. Under this circumstance, the central bank must be better at accurately grasping the factors that affect the overall economic and financial development, pay attention to research new situations, develop new tools, explore new methods, solve new problems, and carry out work creatively, and strive to understand the overall situation. , speak macro, understand technology, have both courage and insight, and give full play to the prominent role of the central bank in macro control. \x0d\ According to the provisions of the State Council's institutional reform plan reviewed and approved by the 10th National People's Congress, the supervisory functions of the People's Bank of China over banks, financial asset management companies, trust investment companies and other deposit-taking financial institutions will be separated and combined with The relevant functions of the Central Financial Working Committee were integrated and the China Banking Regulatory Commission was established. \x0d\With the continuous improvement of the socialist market economic system, the role of the People's Bank of China as the central bank in the macro-control system will become more prominent. According to the "Law of the People's Republic of China on the People's Bank of China" as amended at the Sixth Meeting of the Standing Committee of the Tenth National People's Congress on December 27, 2003, the main responsibilities of the People's Bank of China are: \x0d\ ( 1) Draft relevant laws and administrative regulations; improve the operating rules of relevant financial institutions; issue orders and regulations related to the performance of duties. \x0d\　 (2) Formulate and implement monetary policies in accordance with the law. \x0d\　 (3) Supervise and manage the inter-bank lending market, inter-bank bond market, foreign exchange market and gold market. \x0d\　 (4) Prevent and resolve systemic financial risks and maintain national financial stability. \x0d\　 (5) Determine RMB exchange rate policy; maintain a reasonable RMB exchange rate level; implement foreign exchange management; hold, manage and operate national foreign exchange reserves and gold reserves. \x0d\　 (6) Issue RMB and manage the circulation of RMB. \x0d\　 (7) Manage the treasury. \x0d\　 (8) Work with relevant departments to formulate payment and settlement rules and maintain the normal operation of the payment and clearing system. \x0d\　 (9) Formulate and organize the implementation of a comprehensive statistical system for the financial industry, and be responsible for data aggregation and macroeconomic analysis and forecasting. \x0d\　 (10) Organize and coordinate national anti-money laundering work, guide and deploy anti-money laundering work in the financial industry, and undertake anti-money laundering fund monitoring responsibilities. \x0d\　 (11) Manage the credit reporting industry and promote the establishment of a social credit system. \x0d\　 (12) As the country’s central bank, it engages in relevant international financial activities. \x0d\　 (13) Engage in financial business activities in accordance with relevant regulations. \x0d\　 (14) Undertake other matters assigned by the State Council.