2016/10/3 Global Competitiveness Global Competitiveness Changes in employment since 2012 Top 5 world banks 2004 taste The Banker. 2015 China Banking System: 1952-1978 2.3 Banking System Reform in China PBoc had sole responsibility for 中国人民银行 the money supply, and served as the government treasury, the older of enterprise deposits he main source of credit for vings bank, and China Banking System 1952-1978 Banking System Reform since 1978 ABC reestablished in 1979 ranging foreign loans, setting exchange rates for chinese currency. suing letters of credit, and generally carrying out all financial of Finance in 1979, and became directly supervised by the ank of Communication merged to PBoC and CCB in 1958 except State Council ICBC separated from PBoC on Jan 1"1984 The Agricultural Bank was established in 1955 to facilitate financial ialized commercial banks were operations in the rural areas and provide financial support to formed in providing different services gricultural units, merged with PBoC in 1957, re-established in 1963, and merged with PBoC again in 1965. on Bank was affiliated to moF and Communication in 1986, headquartered in Shanghai managed state appropriations and loans for capital construction. PBoC started to function as a central bank 102016/10/3 10 Global Competitiveness 2-55 The Banker, 2015 Global Competitiveness 2-56 2.3 Banking System Reform in China2-57 China Banking System: 1952-1978 • Mono-banking system – PBoC had sole responsibility for issuing currency and controlling the money supply, and served as the government treasury, the holder of enterprise deposits, the main source of credit for economic units, the clearing center for financial transactions, the national savings bank, and a ubiquitous monitor of economic activities. 2-58 China Banking System 1952-1978 • Bank of China handled all dealings in foreign exchange, and was responsible for allocating the country's foreign exchange reserves, arranging foreign loans, setting exchange rates for Chinese currency, issuing letters of credit, and generally carrying out all financial transactions with foreign firms and individuals. • Bank of Communication merged to PBoC and CCB in 1958 except the business in Hong Kong. • The Agricultural Bank was established in 1955 to facilitate financial operations in the rural areas and provide financial support to agricultural units, merged with PBoC in 1957, re-established in 1963, and merged with PBoC again in 1965. • The People's Construction Bank was affiliated to MOF and managed state appropriations and loans for capital construction. 2-59 2-60 Banking System Reform since 1978 • State-Owned Specialized Banks(1978-1994) – ABC reestablished in 1979 – People’s Construction Bank was separated from Ministry of Finance in 1979, and became directly supervised by the State Council – ICBC separated from PBoC on Jan.1st 1984 – Big four state-owned specialized commercial banks were formed in providing different services – The State Council approved re-establishment of Bank of Communication in 1986, headquartered in Shanghai – PBoC started to function as a central bank – Plural-banking system started