China's financial institution system at this stage?

China's financial institution system is a modern financial system with the central bank as the core, policy banks separated from commercial banks, state-owned commercial banks as the main body, and a variety of financial institutions co-existing, and a strict division of labor and a pattern of mutual cooperation.

China's current stage of the formation of the overall situation of the financial institutions system as shown in the table.

Central Bank of the People's Bank of China

Policy Banks China Development Bank, Export-Import Bank of China, Agricultural Development Bank of China

Wholly State-Owned Commercial Banks Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China

New Commercial Banks Bank of Communications, China CITIC Bank of Industry and Commerce, China Merchants Bank, Huaxia Bank, China Everbright Bank, China Minsheng Bank, Shenzhen Development Bank, Guangdong Development Bank, Shanghai Pudong Development Bank, Fujian Industrial Bank, Yantai Housing and Savings Bank, Bengbu Housing and Savings Bank

City Commercial Banks Beijing, Shanghai, Shenzhen, Dalian and other eighteen

Non-banking Financial Institutions Insurance companies, securities companies, trust and investment companies, financial companies, financial leasing companies, urban credit cooperatives, farm credit cooperatives, and other financial institutions. companies, urban credit cooperatives, farm credit cooperatives, postal savings institutions, etc.

(Table 1) Main Composition of China's Financial Institutions System at the Present Stage

(1) The People's Bank of China (PBOC)

The PBOC is China's central bank and the state organ that formulates and implements monetary policy and supervises and manages the financial industry under the leadership of the State Council. It is the bank of currency issuance, the bank of banks and the bank of government in China. As stipulated in the Law of the People's Bank of China, the specific duties of the People's Bank of China include:1. Issuing and fulfilling orders and regulations related to its production.2. Formulating and executing monetary policy in accordance with the law.3. Issuing the RMB and managing the circulation of the RMB.4. Supervising and administering the interbank lending market and the interbank bond market.5. Implementing foreign exchange management and supervising and administering the interbank foreign exchange market.6. Supervising and administering the Gold market.7 Holding, managing and operating the national foreign exchange reserves and gold reserves.8 Managing the State Treasury.9 Maintaining the normal operation of the payment and clearing system.10 Guiding and deploying anti-money laundering work in the financial industry, and being responsible for the detection of funds for anti-money laundering.11 Being responsible for the statistics, surveys, analyses and forecasts of the financial industry.12 Acting as the country's central bank and engaging in relevant international financial activities.13 Carrying out other duties prescribed by the State Council.

The People's Bank of China's highest determined body is the Board of Governors, and the Chairman of Li is the President of the People's Bank of China. The head office of the PBOC is located in Beijing, and its branches were set up according to administrative districts before 1998, and nine inter-administrative branches were set up according to economic districts after 1998, such as Tianjin, Shenyang, Shanghai, Nanjing, Jinan, Wuhan, Guangzhou, Chengdu, Xi'an, etc., with a number of sub-branches under each of the branches. Each branch performs the relevant duties of the central bank in its respective jurisdiction under the leadership of the head office. Meanwhile, the People's Bank of China has also set up two Business Administration Departments in Beijing and Chongqing, which are directly under the head office.

(2) Policy Banks

Policy banks are banks invested and established by the government, which do not aim at making profit and specialize in enriching policy financial business according to the government's decision and intention.

1. China Development Bank

Country Development Bank was established on March 17, 1994, and its basic responsibility is to finance China's infrastructure, basic industries and pillar industries of large and medium-sized capital construction, technological transformation and other policy projects and their supporting works. The business scope of the State Development Bank is mainly invested in the national economic development constraints on the "bottleneck" industry projects, can directly enhance the comprehensive national strength of the pillar industries of major projects, high-tech industries, major business projects, major policy projects across the region, and so on.

2. Export-Import Bank of China

The Export-Import Bank of China was established on July 1, 1994, and its main responsibility is to implement the national industrial policy and foreign trade policy, and to provide policy financial support for the expansion of electromechanical products and complete sets of equipment and other capital goods exports. The business scope of the Export-Import Bank of China mainly includes: providing export credit for the export of electromechanical products and complete sets of equipment and other capital goods, handling various loans, hybrid loans and sub-loans related thereto, and handling export credit insurance and guarantee business.

3. Agricultural Development Bank of China

Agricultural Development Bank of China was established on November 18, 1994, and its main responsibility is to raise agricultural policy credit funds on the basis of public credit, to undertake the rural policy financial business stipulated by the state, and to act as an agent for the allocation of financial funds to support the rural areas, and to serve the development of agriculture and rural economy. Its business scope mainly includes: handling grain, cotton, oil, sugar, pork and other major agricultural and sideline products of the state special reserve and acquisition loans, poverty alleviation loans and comprehensive agricultural development loans, as well as small-scale agriculture, forestry, animal husbandry, water conservancy capital construction and technological transformation loans determined by the state.

(C) wholly state-owned commercial banks

The Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and the Bank of China and other four wholly state-owned commercial banks in China's financial institutions system is in the main position. According to the provisions of China's Commercial Bank Law, wholly state-owned commercial banks can engage in some or all of the following businesses: 1) Absorbing public deposits. 2) Issuing short-term, medium-term and medium- to long-term loans. 3) Handling domestic and foreign settlements. 4) Handling discounting of bills. 5) Issuing financial bonds. 6) Acting as an agent for the issuance, agency for the payment and underwriting of government bonds. 7) Engaging in interbank lending. 8) Buying, selling and acting as an agent for the purchase and sale of foreign currency. 9) Providing letter of credit services and guarantees. 9, provide letter of credit services and guarantees. 10, agent collection and payment, agent insurance business. 11, provide safe deposit box services. 12, other businesses approved by the People's Bank of China.

The Industrial and Commercial Bank of China (ICBC) is the largest commercial bank in China, and is in an advantageous position in absorbing savings deposits, granting medium- and long-term loans, and handling settlement business. On the one hand, it actively explores and steadily operates, while at the same time focusing on efficiency and intensive operation.

Agricultural Bank of China, on the one hand, takes advantage of its inherent strengths to continue to serve the rural economy, based on supporting the industrialization of agriculture, and shifting its business focus to high-efficiency industries and enterprises; on the other hand, it implements the market positioning of linking urban and rural areas, expanding its business in the suburbs and urban areas, and supporting the development of the urban and rural economies as a whole; and at the same time, it is actively creating the conditions for entry into the international financial market.

Bank of China has laid a good foundation for the development of international financial business during its period as a national foreign exchange and foreign trade transfer bank. Now, as a foreign exchange designated bank, it continues to give full play to its business advantages in supporting the development of foreign trade, providing international settlement services, facilitating import and export financing, and serving as the main channel for external financing. China Construction Bank entered a new stage of transformation into a state-owned commercial bank in 1994, after a decade of parallel financial and banking functions. in March 1996 the People's Construction Bank of China changed its name to China Construction Bank. As the bank has long specialized in capital construction financial business such as fixed asset investment and real estate in the past, it has close ties with large enterprises and industries, thus continuing to play to its strengths and implementing the business strategy of serving large industries and enterprises, and at the same time actively expanding its other businesses as a commercial bank.

(D) other commercial banks

Since the early 1980s, China has set up a number of joint-stock commercial banks: Bank of Communications, the Center Industrial Bank, China Everbright Bank, Huaxia Bank, China Minsheng Bank, Guangdong Development Bank, China Merchants Bank, Fujian Industrial Bank, Shanghai Pudong Development Bank, Yantai Housing and Savings Bank, Bengbu Housing and Savings Bank and so on. The In terms of the activities of these commercial banks in the geographical point of view, the new clearly by the national commercial banks (such as the Bank of Communications, CITIC Industrial Bank, China Light Bank, Huaxia Bank, China Minsheng Bank, etc.) and regional commercial banks, which can be basically discerned from the bank's name. But in recent years, with the deepening of financial reform and the rapid development of the financial industry, some regional commercial banks have been operating beyond the original positioning of the region, but also to other cities or regions to expand.

In the spring of 1995, China began to regulate credit unions on the basis of the formation of urban cooperative banks, the basic way is to reorganize the many urban credit cooperatives of local joint-stock commercial banks, urban cooperative banks to implement the first level of legal person, multi-polar accounting and management system, all the shares of urban credit cooperatives have become branches of the dusty cooperative banks. Urban cooperative banks are not cooperative financial institutions in nature, but joint-stock commercial banks, thus urban cooperative banks were later renamed as urban commercial banks. The main function of these city commercial banks named after cities is to finance the economic development of the region, focusing on providing financial services for the development of urban small and medium-sized enterprises.

In November 2001, with the approval of the People's Bank of China, Jiangsu Province set up three rural commercial banks in Zhangjiagang City, Changshu City and Jiangyin City, which were restructured and organized on the basis of rural credit cooperatives as joint-stock commercial banks, marking the birth of a new kind of rural financial institutions.

(V) Non-Banking Financial Institutions

Non-banking financial institutions mainly refer to insurance companies, trust and investment companies, securities companies, finance companies and leasing companies.

1, insurance companies

This is the financial institutions operating insurance and reinsurance business. Its main tasks are: to organize and gather insurance funds, establish a social and economic compensation system, to maintain the stability of production and people's lives, and to promote social welfare; to operate domestic and foreign insurance and re-insurance business as well as investment activities related to insurance business, and to promote the development of social production, circulation and foreign trade. At present, China's insurance companies include: the People's Insurance Company of China (Group), China Pacific Insurance Company, Ping An Insurance Company of China, China Life Insurance Company Limited, Pacific Insurance Company and Taiping Life Insurance Company Limited. Some famous foreign insurance companies such as American International Assurance Company also have branches in China.

2. Trust and Investment Company

Trust and Investment Company is a financial institution that operates trust and investment business. There are three types of trust and investment companies in China: trust and investment companies affiliated with national banks; national trust and investment companies, such as the China International Trust and Investment Company and the AIC Financial Trust Company; and local trust and investment companies, which are trust and investment companies set up by local governments in large and medium-sized cities for the purpose of promoting economic and technological cooperation between the region and abroad. The business scope of the trust investment company includes: absorbing trust deposits; operating entrusted loans and investments and trust loans and investments; engaging in financial leasing; handling guarantees and agency business; operating the issuance and purchase and sale of securities, as well as the issuance of foreign-currency securities outside the country; raising foreign-currency borrowings outside the country; and operating the foreign exchange trust investment business.

3, securities companies

Securities companies, also known as securities dealers, the main business: the promotion of government bonds, corporate bonds and stocks, agency trading and self-dealing has been listed in the circulation of various types of securities, to participate in corporate acquisitions, mergers and acquisitions, to act as a financial adviser to enterprises.

China's first securities company was established in 1987 in the Shenzhen Special Economic Zone, later, the provinces and cities have set up securities companies. In order to facilitate investors to buy and sell stocks and bonds, securities companies and trust and investment companies have set up securities trading offices in large and medium-sized cities across the country, where it is very convenient for people to buy and sell all kinds of listed securities.

4, finance companies

China's finance companies are mostly for the enterprise group internal capital formation, its purpose and task is, for the sub-enterprise group of internal capital formation or financing funds, generally shall not be outside the enterprise group to absorb deposits. Finance companies in the business by the Banking Supervision Commission leadership and management, in the administrative subordinate to the enterprise group. The main businesses are: RMB deposit, loan and investment business; trust and financial leasing business; issuance and agency issuance of marketable securities, and so on.

5, financial leasing companies

China's financial leasing companies began in the 1980s. Most of the financial leasing companies are created by banks, other financial institutions and some industry authorities to set up joint ventures, such as China Leasing Company Limited, Oriental Leasing Company Limited. According to the principle of separate operation and management in China's financial industry, the leasing business also requires independent operation and decoupling from banks and other financial institutions. At present, the main businesses of financial leasing companies include: leasing, subleasing and leaseback of movable and immovable assets for production, scientific research, office and transportation; purchase of the subject matter involved in the aforementioned leasing business; handling of leased goods and rental products; borrowing from financial institutions and other financing businesses; absorption of trust deposits under specific projects; liquidity loan business under leasing projects; foreign exchange and other businesses. ; foreign exchange and other operations.

6. China Postal Savings and Exchange Bureau

China Postal Savings and Exchange Bureau is a postal financial institution that operates independently, is self-financing, bears its own risks and seeks its own balance. It mainly serves the individual as the object of service, and mainly handles savings, personal remittance and settlement business, and cannot handle the same business with banking institutions such as granting loans. Postal savings and remittance industry institutions to absorb the deposit, in addition to the required payment of deposit reserves and retain sufficient reserves, the rest of the transfer to the People's Bank of China for unified use, shall not be operated treasury bonds and national policy financial bonds.

7, foreign-funded financial institutions

Foreign-funded financial institutions refers to the relevant laws and regulations in accordance with the People's Republic of China **** and the State, the approval of the establishment and operation of financial institutions in China, which are mainly in three forms: First, the foreign-funded banks, including wholly foreign-funded banks, foreign banks, branches, Chinese-foreign joint venture banks. Second, foreign-funded finance companies, including wholly foreign-funded finance companies and Sino-foreign joint venture finance companies. Third, foreign-funded insurance companies, including wholly foreign-funded insurance companies, foreign insurance company branches, Chinese and foreign joint venture insurance companies.

With the opening up of financial institutions and China's accession to the WTO, foreign-funded banks will successively finance our country, which is conducive to the introduction of foreign bank capital and advanced management experience, but also exacerbate the competition in the financial industry; both the domestic financial institutions to provide opportunities, but also put forward challenges. Domestic financial institutions can only adapt to the market and accept the challenge by transforming their business mechanism and improving their management level.