Home>>Business
Last updated at: (Beijing Time) Thursday, November 29, 2001

China's First Batch of Shareholding Rural Commercial Banks Established

Approved by the People's Bank of China, China's first batch of shareholding rural commercial banks were established in Zhangjiagang, Changshu and Jiangyin, Jiangsu Province. Zhangjiagang Rural Commercial Bank and Changshu Rural Commercial Bank opened their business November 28.


PRINT IT DISCUSS IT CHINESE SEND TO FRIENDS


With the approval of the State Council, pilot reform of rural credit cooperatives was launched in Jiangsu Province last August. Rural credit cooperatives in the province checked up on their assets and a merger of 1658 credit cooperatives was made into 81 joint ones run under 82 legal persons.

It is a great breakthrough in China's pilot reform of rural financial system: Out of rural credit cooperatives as those in Zhangjiagang, Changshu and Jiangyin, China set up its first batch of rural commercial banks under the People's Bank of China.

Breaking away from former business mode, commercial banks are required to be run on their own and take full responsibility for their profits and losses under a modern enterprise system.





The PBOC was established in 1948 and was the first sector to be completely socialized by the new People's Republic. The PBOC helped halt the raging inflation brought about by the civil war and centralize the nation's finances under the Ministry of Finance, which exercised firm control over all financial services, credit and the money supply.

The PBOC is a ministerial-level agency directly under the State Council. It is responsible for:

  • 1.
    • Formulating and implementing monetary policies, and issuing yuan and managing its circulation;

  • 2.
    • Supervising financial institutions, regulating the financial industry and markets, and operating the state treasury;

  • 3.
    • Managing state gold and foreign exchange reserves, and safeguarding payment and clearing systems; and

  • 4.
    • Monitoring government fund raising to ensure legality, reviewing institutional qualifications to issue bonds overseas, and compiling financial statistics, conducting financial investigations and making forecasts.

    The PBOC is currently constructing financial communication networks and services to aid the financial computerization so needed in this era of advanced technology.



    By PD Online Staff Li Yan
    		    Advanced

    Governor of PBOC Stresses Solving Difficulties in Loans to Farmers

    Central Bank Calls for Better Support to Rural Economy