The following document is the 2019 budget for China’s central bank, the People’s Bank of China.
The Chinese source text is available online at:
US $1 ≈ 7 Chinese Yuan Renminbi (RMB), as of August 17, 2020.
Translator: Etcetera Language Group, Inc.
Editor: Ben Murphy, CSET Translation Lead
Part 1: Overview
The People’s Bank of China (PBOC) (中国人民银行) is the central bank of the People’s Republic of China. The PBOC, in accordance with laws, regulations and authorization of the State Council, uniformly formulates and implements monetary policy, prevents and defuses financial risks, and maintains financial stability.
1. Primary Responsibilities
The Office of the Financial Stability and Development Committee (金融稳定发展委员会) (hereinafter referred to as FSDC [金融委]) is located in the People’s Bank of China. PBOC accepts direct leadership over the FSDC and undertakes the daily work of the FSDC. FSDC is responsible for promoting the implementation of the decisions and deployments of the Communist Party of China (CPC) Central Committee and the State Council on financial work and various FSDC work arrangements and for organizing the drafting of major plans for the reform and development of the financial industry. It puts forward major policy recommendations for systemic financial risk prevention and the maintenance of financial stability, and coordinates the establishment of coordination mechanisms for central and local financial supervision, risk management, consumer protection, and information sharing. It undertakes the specific work of guiding local financial reform and development and supervision, formulates accountability measures for financial management departments and local financial supervision, and undertakes supervision and accountability work.
The PBOC implements the CPC Central Committee’s policies and decisions regarding finance. It upholds and strengthens the party’s centralized leadership of finance in the course of performing its duties. Its primary responsibilities are as follows:
(1) To work out outlines for the reform and development of the financial industry, conduct comprehensive research into and to coordinate the resolution of important problems in financial operations, and to promote the harmonious and healthy development of the financial industry. To lead the coordination of national financial security work and maintain national financial security.
(2) To lead the establishment of a macro-prudential management framework, to draft significant laws and regulations related to the financial industry and to draft other relevant laws and regulations, to develop basic prudential regulatory rules, and to build and improve the basic system of protection for financial consumers.
(3) To formulate and implement monetary policy and credit policy, to optimize the monitoring system for monetary policy, and to conduct macro-prudential management.
(4) To lead the prevention of systemic financial risks and of managing emergency response, to take responsibility for developing the basic rules, provide monitoring and analysis and implement consolidated supervision for financial groups such as financial holding companies and systematically important financial institutions, to urge relevant regulatory departments to adopt supervisory measures as appropriate, to inspect and supervise the financial institutions under the State Council when necessary, and to lead the organization, development, and implementation of recovery and resolution plans for systematically important financial institutions.
(5) To assume the responsibility of lender-of-last resort (最后贷款人) and take responsibility for inspection and supervision of the use of central bank funds by institutions for resolving financial risks.
(6) To supervise and administer the inter-bank bond market, monetary market, foreign exchange market, instrument market, gold market, and over-the-counter derivatives of the aforesaid markets; to lead identification, early warning, and handling of financial risks across different markets, business types and regions, to take responsibility for monitoring and assessing cross-sector financial instruments, and to establish, jointly with relevant departments, unified basic rules for asset management products and the corporate credit bond market and its derivatives market.
(7) To take responsibility for establishing and implementing Renminbi (RMB) exchange rate policies, to encourage cross-border use of RMB or RMB on international markets, to maintain the balance of payments, to implement the foreign exchange administration, to take responsibility for tracking and risk warning for domestic and international financial markets, to monitor and manage cross-border capital flows, and to hold, manage, and operate state foreign exchange and gold reserves.
(8) To take the main responsibility for the planning of key financial infrastructure construction and its overall supervision, to advance the reform and interconnection of financial infrastructure, and to coordinate the regulation of internet finance.
(9) To coordinate the consolidation of financial statistics, to take responsibility for developing unified basic standards and a work mechanism for consolidated financial statistics, to build a national basic financial database, and to fulfill functions related to financial statistics surveys.
(10) To organize the formulation of a development plan for the informatized (信息化) financial industry, to take responsibility for the organization, administration, and coordination of financial standardization and work related to financial S&T, and to guide cybersecurity and informatization work for the financial industry.
(11) To issue the RMB and to administer its circulation.
(12) To coordinate the construction of the national payment system and implement its supervision and management. To work with relevant departments to formulate payment and settlement rules and to take responsibility for the safe, stable, and efficient operation of the national payment and clearing system.
(13) To manage the state treasury.
(14) To assume responsibility for the organization, coordination, supervision, and administration of nationwide anti-money laundering and counter-terrorist financing work and to take responsibility for the monitoring of funds relating to suspected money laundering and terrorist activities.
(15) To administer the credit reporting industry and promote the establishment of a social credit system.
(16) To participate in global economic and financial governance relating to the business of the PBOC and to conduct international financial cooperation.
(17) To engage in financial business operations in line with relevant rules.
(18) To manage and oversee the State Administration of Foreign Exchange (SAFE).
(19) To perform other tasks assigned by the CPC Central Committee and the State Council.
(20) To transform functions. To perfect the macro-control system, innovate regulation measures, build a coordination and collaboration mechanism for development plans and financial and monetary policies, enhance the capabilities of economic monitoring, prediction and early warning, establish and improve the working mechanisms for conducting research on and reserving policies for major issues to ensure a forward-looking, targeted and collaborative macro-control system. To revolve around the guidelines and tasks of the CPC’s and the state’s financial work, ramp up its functions of financial management, heighten the coordination of monetary policy, macro-prudential management policies, and financial regulation policies, and emphasize macro-prudential management and systemic financial risk prevention so as never to allow systemic financial risks to occur. To meet the requirements of simplification of administrative procedures, delegation of authority, combination of delegation and regulation, optimization of services, and transformation of functions to further deepen reform of the administrative approval system and the financial markets and to strive to standardize and streamline administrative approval procedures and increase approval efficiency. To accelerate the promotion of “Internet+ government services,” strengthen interim and ex-post supervision, and effectively improve the quality and performance of government services. To constantly enhance the legal system for the financial industry, guarantee a sound system for “delegation of authority, streamlining management, and improving service” (“放管服”) reforms, provide strong support for stabilization of growth, promotion of reform, adjustment of structures, and improvement of the people’s livelihoods, and promote sustained, stable and solid economic and social development.