People’s Bank of China

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The People's Bank of China (PBC or PBOC) (中国人民银行|t=中國人民銀行p Zhōngguó Rénmín Yínháng) 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 People’s Bank of China has more financial assets than any other single public finance institution in world history.[1]

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History

The bank was established on December 1, 1948 based on the consolidation of the Huabei Bank, the Beihai Bank and the Xibei Farmer Bank. The headquarters was first located in Shijiazhuang, Hebei, and then moved to Beijing in 1949. Between 1949 and 1978 the PBC 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 PBC were split off into four independent but state-owned banks and in 1983, the State Council promulgated that the PBC would function as the central bank of China. Its central bank status was legally confirmed on March 18, 1995 by the 3rd Plenum of the 8th National People's Congress. In 1998, the PBC underwent a major restructuring. All provincial and local branches were abolished, and the PBC opened nine regional branches, whose boundaries did not correspond to local administrative boundaries. In 2003 an amendment was approved for strengthening the role of PBC in the making and implementation of monetary policy for safeguarding the overall financial stability and provision of financial services.

Management

The top management of the PBC is composed of the governor and a certain number of deputy governors. The governor of the PBC is appointed into or removed from office by the President of the People's Republic of China. The candidate for the governor of the PBC is nominated by the Premier of the State Council and approved by the National People's Congress.

When the National People's Congress is in adjournment, the Standing Committee of the National People's Congress sanctions the candidacy for the governor of the PBC. The deputy governors of the PBC are appointed into or removed from office by the Premier of the State Council.

The PBC adopts a governor responsibility system under which the governor supervises the overall work of the PBC while the deputy governors provide assistance to the governor to fulfill his or her responsibility.

Zhu Min becomes deputy governor at central bank

"Zhu Min, a former vice president of Bank of China Ltd., will become a deputy governor at the central bank, the People’s Bank of China said.

A central bank spokeswoman confirmed the appointment in a telephone interview today. She declined to comment on a Caijing Magazine report that Zhu will be China’s representative to the International Monetary Fund.

Zhu, 56, may be nominated by China to become a vice president of the IMF after a stint with the central bank, Caijing reported on Oct. 13. China, which has agreed to buy up to $50 billion of IMF bonds, is among emerging nations that have urged the fund to speed reforms to give developing countries a bigger voice.

Bank of China said late yesterday that Zhu resigned Oct. 16. The central bank spokeswoman, who wouldn’t be identified, didn’t say when Zhu would start.

Zhu received a doctorate in economics from Johns Hopkins University and joined Bank of China in 1996, according to a biography provided previously by the lender. He was earlier an economist with the World Bank.

Zhu led the initial public offering of Bank of China’s Hong Kong unit in 2002 and the group’s first-time offering in 2006. He was also in charge of the group’s accounting, treasury, internal control, compliance and strategic development.

In March, Chinese central bank governor Zhou Xiaochuan urged the IMF to expand the use of its so-called Special Drawing Rights and move toward a “super-sovereign reserve currency.”

Since December, China has signed 650 billion yuan ($95 billion) in currency-swap agreements with Argentina, Belarus Hong Kong, Indonesia, Malaysia and South Korea, promoting greater use of its currency. Companies in Shanghai and the southern province of Guangdong have been allowed to settle cross-border trade in yuan since July 2.

References

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