Assignments for Part one Overview of Fianancial Industry in China.docVIP

Assignments for Part 1Overview of Fianancial Industry in China Group Number: No.16 Submission Date: 2012.09.17 Outline ⅠBanking Sector The Evolution and Role of the Banking Sector in China The role: First,a principal depository of liquid funds for the public Second,a key role in facilitating efficient allocation of scarce financial resources Third,transmit the impulses of monetary policy to the whole financial system Fourth,provides national payment mechanism Fifth,transforming risks. The Evolution:(four phases) One,the establishment of the People’s Bank of China in December 1948 Two,began in 1984 when the State Council decided to make PBC the a central bank (the establishment of the four specialized banks：ICBC,ABC,BOC,CCB.) Three,began in 1993 when the State Council issued the Decision on Financial Reform (a number of important structural measures were taken with particular significance) Four, the establishment of three policy banks in 1994 (the State Development Bank, the Agricultural Development Bank of China, the Export and Import Bank of China) The Reform and Functions of the Central Bank General targets: conduct monetary policy prevent and dissolve financial risks maintain financial stability under the leadership of the State Council Special targets: undertake to formulate and implement monetary policy issue currency and regulata its circulation manage the official international reserves regulate inter-bank money,inter-bank bond market,foreign exchange market and gold market act as fiscal agent maintain the payment and settlement system combat money laundering activities participate in international financial cooperation on behalf of the state Vigorous Development of the Commercial Banking Sector One ,a phased reform of the wholly state-owned commercial banks Two ,the joint-equity banks are an emerging force among the commercial banks Three ,the rural banking institutions are becoming viable