Roles of the People's Bank of China

Good Essays
1. Drafting and enforcing relevant laws, rules and regulations that are related to fulfilling its functions
2. Formulating and implementing monetary policy in accordance with law
Issuing the Renminbi and administering its circulation
3. Regulating financial markets, including the inter-bank lending market, the inter-bank bond market, foreign exchange market and gold market
4. Preventing and mitigating systemic financial risks to safeguard financial stability
5. Maintaining the Renminbi exchange rate at adaptive and equilibrium level
6. Holding and managing the state foreign exchange and gold reserves
7. Managing the State treasury as fiscal agent
8. Making payment and settlement rules in collaboration with relevant departments and ensuring normal operation of the payment and settlement systems
9. Providing guidance to anti-money laundering work in the financial sector and monitoring money-laundering related suspicious fund movement
10. Developing statistics system for the financial industry and responsible for the consolidation of financial statistics as well as the conduct of economic analysis and forecast
11. Administering credit reporting industry in China and promoting the building up of credit information system
12. Participating in international financial activities at the capacity of the central bank
13. Engaging in financial business operations in line with relevant rules
14. Performing other functions prescribed by the State Council.
China’s Currency Manipulation
After China allows the Yuan to float more freely, it has adopted a “managed float" policy. The Bank of China was able to manipulate its currency by buying dollars to keep the dollar price high. China has been interested in keeping the Yuan undervalued relative to the US Dollar, and the easiest way to keep the Dollar price high, and the Yuan low is to buy dollars from the open market. A country like China, which runs a huge Trade Surplus, can afford to buy dollars in the open

You May Also Find These Documents Helpful

  • Powerful Essays

    The People's Bank of China

    • 1916 Words
    • 8 Pages

    People’s Bank of China The People’s Bank of China is the is the central bank of People’s Republic of China with the power to control monetary policy and regulate the 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. History: The bank was established on December 1, 1948 based on consolidation of Huabei Bank, the Beihai Bank and the Xibei Farmer Bank. The headquarter was first located…

    • 1916 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    The Functions of The People’s Bank of China The People’s Bank of China (PBC) is the central bank of China. With the improvement of the socialist market economic system, the PBC, as a central bank, plays an important role in China's macroeconomic management. The head office of the PBC is located in Beijing, the capital of China, and consists of 18 functional departments (bureaus). Under the guidance of the State Council, the PBC formulates and implements monetary policy, prevents and resolves financial…

    • 1568 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    Leadership of Bank of China

    • 2320 Words
    • 10 Pages

    Leadership of Bank of China (Employee / Labor Relations) Introduction of the Bank of China The place where I had completed my internship is Bank of China, which is one of the most influential and high-ranking banks in China, even in the world. Its long term reputation and credibility obtained from the global industry, customers and widely recognized authority. According to some global financial rankings in 2003, based on its core capital among the bankers, the bank of China was the 15th largest bank in the…

    • 2320 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    China Merchants Bank

    • 9544 Words
    • 39 Pages

    China Merchants Bank----the First Stock Commercial Bank in China ---- Interpret the Safety & Profitability Index Page 1. Brief 1.1 SMART objective of the project In this project, I will spend three months to investigating China Merchants Bank (CMB) financial situation, and interpret the financial statement of China Merchants Bank from 2004 to 2008 to evaluate the safety and profitability of CMB. Usual analysis tool conclude ratio analysis, primary…

    • 9544 Words
    • 39 Pages
    Powerful Essays
  • Powerful Essays

    role of banks

    • 3581 Words
    • 15 Pages

    ROLE OF BANKS First, they take a leading role in developing other financial intermediaries and markets. Second, due to the absence of well-developed equity and bond markets, the corporate sector depends heavily on banks to meet its financing needs. Finally, in emerging markets such as India, banks cater to the needs of a vast number of savers from the household sector, who prefer assured income and liquidity and safety of funds, because of their inadequate capacity to manage financial risks Definition…

    • 3581 Words
    • 15 Pages
    Powerful Essays
  • Better Essays

    Role of It in Banks

    • 1575 Words
    • 7 Pages

    Role of Information Technology (IT) in the Banking Sector Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with…

    • 1575 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    Role of Banks

    • 342 Words
    • 2 Pages

    ID : 1613946 CLASS: TUTORIAL 13 (12339) Banks play a central role in the economy, they create and maintain the flow of money between surplus and deficit unit and by this facilitate the process of production, distribution, exchange and consumption of wealth. If there were no bank activities, a large of amount of capital of the economy would be idle. Hence, banking activities are vital for the development of an economy. Another function of the bank is risk spreading. They transform risky asset…

    • 342 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    the domestic market, Starbucks entered the global marketplace, including opening its first stores in China in 1999. (Lamb, p.139) The company entered the Chinese marketplace knowing the vast opportunities that were available, but quite aware that many factors had to be accounted for in its marketing mix and product offering strategies. Cultural, political, and economic factors played important roles in discovering the best plan for delivering a lucrative coffee business to a land where the majority…

    • 1767 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Introduction People's Bank is a multi-service financial institution that has grown to have assets reach nearly $12 billion. When it started in 1842, it opened as a general savings bank aimed at the blue-collar worker who wanted to save his/her money. Now People's offers many services such as mortgage loans, credit cards, checking accounts, and investment advisory and brokerage services. People's also offers many different ways in which to do your banking whether it be at the local branch, the supermarket…

    • 990 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    importantly, the shareholders would understand their basic rights and overall functioning of the company by the management. d) To know whether the board and the management in practicing good corporate governance. Reference for the Rules of Bank of China’s Corporate Governance- www.boc.cn/en/investor www.oecd.com www.bis.org/publ/bcbs176.pdf Books- 1) The Board of Directors 25 Keys to Corporate…

    • 1889 Words
    • 8 Pages
    Good Essays