People's Bank of China
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Image:People's Bank of China logo.jpg The People's Bank of China (Simplified Chinese: 中国人民银行; Traditional Chinese: 中國人民銀行; pinyin: Zhōngguó Rénmín Yínháng ) (not to be confused with the Bank of China or the Central Bank of China) is the central bank of the People's Republic of China with the power to control monetary policy and regulate financial institutions in mainland China. The current structure of the bank is modelled after the Federal Reserve System of the United States.
Among central banks, the PBOC has a unique history. The bank was established in 1948 shortly before the establishment of the People's Republic of China. After the communist victory, all banks were nationalized and incorporated into the PBOC. The headquarters were first located in Shijiazhuang, Hebei, then moved to Beijing in 1949. Between 1949 and 1978 the PBOC was the only bank in the People's Republic of China and was responsible for both central banking and commercial banking operations.
In the 1980s, as part of economic reform, the commercial banking functions of the PBOC were split off into four independent but state-owned banks, and the mission of the PBOC was refocused to undertake only the functions of a central bank. This change was reflected in the People's Bank of China Law which was adopted in 1995 whose goal was to complete the transformation of the People's Bank of China into a central bank, consciously modelled after the United States Federal Reserve System. Accordingly, in 1998, the PBOC underwent a major restructuring. All provincial and local branches were abolished, and the PBOC opened nine regional branches, whose boundaries did not correspond to local administrative boundaries. Like its American counterpart, this was intended to reduce the influence that local officials had on the PBOC policy making process.
The Governor of the People's Bank of China is chosen by the National People's Congress. The current Governor is Zhou Xiaochuan. Zhu Rongji, Premier of the People's Republic of China from 1998 to 2003, was also a former Governor.
The activities of the central bank and other details are regulated by the Law of the People's Republic of China on the People's Bank of China.
In Hong Kong, the central bank is the Hong Kong Monetary Authority and policy is directed by the Financial Secretary.
Benchmark one-year lending rate
- 10% (increased by 27 basis points on Oct. 29, 2004)