Banking System 1953-1978 The Agricultural Bank was established in th 1955 to facilitate financial operations in the 3.2: Current Banking System rural areas and provide financial support to agricultural units, merged with PBC in 1957,re- established in 1963, and merged with PBC ag in 1965 The People's Construction Bank was affiliated to MOF and managed state appropriations and loans for capital construction The Banking System Reform The Banking System Reform since 978 since 978 m State-Owned Specialized Banks(1978-1994) ABC reestablished in 979 o People's Construction Bank was separated from inistry of Finance in 1979, and became directly supervised by the State Council ICBC separated from PBC on Jan. Is1984 Big four state-owned specialized commercial banks were formed in providing different services PBC started to function as a central bank Plural-banking system started The Banking System Reform Banking System Reform since since 978 l978 State-Owned Specialized Banks(1978-1994) State-Owned Commercial Banks(1994-2003) es began to emerge in the mid 80s Agricultural Development Bank the Export-In supplementary banking to support economic growth Bank of China)were formed in1994 Rural credit cooperatives are small, collectively- People's Construction Bank was renamed as china dled In 1995. the PBCs central bank status was legally milies, villages, and cooperative organizations. Urban credit cooperatives provide small-scale PBC still supervised the commercial banks: financial financial services to individual and collective onstruction: improving internal management; enterprises that sp in urban areas external regulation reinforced 44 Banking System 1953-1978 — The Agricultural Bank was established in the 1955 to facilitate financial operations in the rural areas and provide financial support to agricultural units, merged with PBC in 1957,re￾established in 1963, and merged with PBC again in 1965. — The People's Construction Bank was affiliated to MOF and managed state appropriations and loans for capital construction. 3-19 3.2 : Current Banking System 3-20 The Banking System Reform since 1978 3-21 3-22 The 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 PBC on Jan.1st 1984 ◦ Big four state-owned specialized commercial banks were formed in providing different services ◦ The State Council approved re-establishment of BoCom in 1986, headquarter in Shanghai ◦ PBC started to function as a central bank ◦ Plural-banking system started 3-23 The Banking System Reform since 1978 — State-Owned Specialized Banks(1978－1994) ◦ Rural credit cooperatives and Urban credit cooperatives began to emerge in the mid 80s as supplementary banking to support economic growth. ◦ Rural credit cooperatives are small, collectively￾owned savings and lending organizations that handled deposits and short-term loans for individual farm families, villages, and cooperative organizations. ◦ Urban credit cooperatives provide small-scale financial services to individual and collective enterprises that sprang up in urban areas. 3-24 Banking System Reform since 1978 — State-Owned Commercial Banks(1994－2003) ◦ Three policy banks (China Development Bank, China Agricultural Development Bank, the Export-Import Bank of China) were formed in1994 ◦ People’s Construction Bank was renamed as China Construction Bank in 1996 ◦ In 1995,the PBC's central bank status was legally confirmed ◦ PBC still supervised the commercial banks: financial reconstruction; improving internal management; external regulation reinforced