Central Bank of China

Central Bank of China

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 the 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. Mr. Chen Yuan was instrumental in modernizing the bank in the early 1990’s. Its central bank status was legally confirmed on March 18, 1995 by the 3rd Plenum o 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, the Standing Committee of the Tenth National People’s Congress approved an amendment law 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.

Brief History

In 1923, Dr. Sun Yat-sen, national Father of the Republic of China, promoted the establishment of the Central Bank of China (the bank) with the primary goal of financial national developments. The Bank was inaugurated in Canton in the following year. Since then the Bank developed with a visionto be in line with the modern concept of central banking. In December 1949, the Bank relocated with the government to Mainland China to Paipei, and in 1961, resumed its operations there. On November 8, 1979, the newly revised Central Bank of China Act was promulgated. While the Bank has since been under the Executive Yuan (Cabinet), its...