What is the structure of the banking system?

The banking system refers to the system that determines the composition and functions of financial institutions themselves and their management institutions. Also known as banking system, banking system.

The establishment of a national banking system depends on its political and historical conditions and economic development. Due to the mutual penetration and imitation of world economic development, the banking systems of various countries also have basic similarities. Generally speaking, a relatively perfect banking system is composed of the central bank as the core, commercial banks as the main body, various professional banks and other financial institutions. The above-mentioned financial institutions are protected and bound by legislation, managed and supervised by financial management authorities (central banks or management agencies set up by the government alone), and play an active role in economic activities to achieve national economic goals.

The Development of China's Banking System

First, the establishment of China's banking system can be traced back to the Second Revolutionary Civil War, during which the national banks of China, the Soviet Union and People's Republic of China (PRC) were established. After that, we need to pay attention to the establishment of China People's Bank, which was established on the basis of the merger of North China Bank, Beihai Bank and Northwest Farmers Bank in February 1948, marking the initial establishment of China's national banking system.

Second, the development of China's banking system has experienced a long planned economy era (1953- 1978). Under the highly unified planned economy system, the people's bank system has become the main means for the state to manage credit funds. The People's Bank of China is a state organ that manages financial institutions and currency issuance, and is also a state bank that comprehensively operates banking business.

Third, step into the era of transition from national banks to central banks (1979- 1992). China has initially established a central banking system with China characteristics. 1978 In March, the People's Bank of China became independent from the Ministry of Finance. 1June, 983, the State Council made a decision that the People's Bank of China should exercise the function of the central bank and set up the Industrial and Commercial Bank to undertake the business of industrial and commercial credit and savings handled by the former People's Bank. At this point, China has initially formed a new banking system with the People's Bank of China as the center and the national bank as the leading factor, including industrial and commercial bank, agricultural bank, China bank, China Construction Bank, China People's Insurance Company, rural credit cooperatives and other financial institutions, which has changed the past situation of "one is dominant".

Fourth, gradually strengthen and improve the stage of modern central banking system (1993 till now). The China Municipal Government has successively promulgated the Decision on Financial System Reform, the Law of the People's Republic of China on the People's Bank of China, and the Law of the People's Republic of China on the People's Bank of China (Amendment). Standardize the banking system from the institutional level. The function of China People's Bank has been redefined: China People's Bank is a department of the State Council, the central bank of People's Republic of China (PRC), and the macro-control department that formulates and implements monetary policy, maintains financial stability and provides financial services under the leadership of the State Council. The change of this function is mainly manifested as "one strengthening, one transforming and two increasing".