中国人民银行简介作用功能及重要性-英文版.docx

CENTRAL BANK1The People’s Bank of ChinaTiffany GengUnited International CollegeCENTRAL BANK2CONTENTS1. Introduction2. Importance 3. Literature review4. Function4.1 Formulate and implement monetary and financial policies4.2 Financial supervision4.3 Payment and settlement services provided.5. Monetary policy6. Exchange rate policy7. References8. AppendixCENTRAL BANK31. INTRODUCTIONThe People’s Bank of China (PBC) is the central bank of the People’s Republic of China, which is part of State Council of the People’s Republic of China with the power to control monetary policy and regulate financial institutions in mainland China, The Law of the People's Republic of China on the People's Bank of China provides that The People's Bank of China has the most financial assets of any single public finance institution in history and has the most financial assets of any single public finance institution in history. The bank was established on December 1, 1948 based on the consolidation of the Hebei Bank, the Beihai Bank and the Xibei Farmer Bank. The headquarters was first located in Shijiazhuang, Heibei, and then moved to Beijing in 1949. Between 1949 and 1978 the PBC was the only bank in the People’s Republic of China and was responsible for both central bank and commercial banking operating. In the 1980s, as part of economic reform, the commercial banking function of the PBC were split off into five independent but state-owned banks and in 1983, the State Council promulgated that the PBC would function as the central bank in China. In 2003, the Standing Committee of the Tenth National People’s Congress approved an amendment law for strengthening the role of PBC in the making and implementation of monetary policy for safeguarding the overall financial stability and provision of financial services. And in 2005, PBC decided to establish another headquarters in Shanghai municipality. In 2011, the PBC decided to issue 7 billion national bands with 3 months and reissue 3 years national bonds with 200 billion. CENTRAL BANK42. IMPORTANCEThe primary reason for a country to create its own central bank, then, is to ensure control over its currency. Giving the currency-printing monopoly to someone else can be disastrous, resulting in high inflation and damage to the economy’s ability to function smoothly. Second, every country needs a secure and efficient payments system. People require ways to pay each other, and financial institutions need a cheap and reliable way to transfer funds to one another. Finally, as we saw in our discussion of banking regulation, someone has to watch over commercial banks and nonbank financial institutions so that savers and investors can be confident they are sound. Those who monitor the financial system must have sensitive information.As the government’s bank and the bankers’ bank, central banks are the biggest, most powerful players in a country’s financial and economic system. Central bankers are supposed to use this power to stabilize the economy, making us all better off. The People’s Bank of China (PBC), is the government’s bank, it need to manage the finances of the government, and through interest rates, controls the availability of money and credit. The People’s Bank of China (PBC) also a bankers’ bank, it could guarantees that sound banks can do business by lending to them, even during crises. And operates a payments system for interbank payments. And oversees financial institutions to ensure confidence in their soundness.CENTRAL BANK53. LITERATURE REVIEWAfter 2008 financial crisis, in order to eliminate adverse effect on financial crisis, central bank of china take expansionary monetary policy to stimulate economy. With the process of economy recovery, it is more serious about inflation, and in order to curb inflation, central bank of china have to take restrictive monetary policy. so this paper mainly talk about adjustment of interest rate on central bank of china, and how effect on Chinese economy environment. There are four main roles of adjustment of interest rate are stabilize the price of goods, ensure full employment, keep economic growth, and balance international incomes and expenses. And at nowadays the main role of adjustment of interest rate is stabilize the price of goods and curb inflation. Central bank of china said that from November 22, 2014, one year deposit rate will decrease 0.25 percent to 2.75 percent and the lending rate will decrease 0.4 percent to 5.6 percent. And the deposit interest rate fluctuation range, from 1.1 times to 1.2 times the benchmark interest rate adjustment. After decrease of interest rate, there are far ranging influence on personal wealth management. For example, the interest of mortgage rate will decrease; in short run the price of A shares will go up, decrease of interest rate will accelerate liquidity then provide positive effective on investigates; but the yield of some commercial bank financial products may drop. With increasely appreciation 。