People's Bank of China: History, Current Operations and Future Outlook

53 Pages Posted: 15 Aug 2017 Last revised: 12 Oct 2017

See all articles by Franklin Allen

Franklin Allen

Imperial College London

Xian Gu

Durham University Business School

Jun "QJ" Qian

Fanhai International School of Finance, Fudan University; University of Pennsylvania - Wharton Financial Institutions Center

Date Written: October 10, 2017

Abstract

We provide a comprehensive review of the development and activities of the People’s Bank of China over the half century. First, the PBC has evolved from the mixture of a central bank and a commercial bank to the central bank of China, with the status legally confirmed in 1995. Although the mandates of the PBC have altered slightly over the past decades, the monetary policy has continuously met challenges in different stages of economic development. Second, in order to reach the objectives of economic growth and stable prices, the PBC does not operate in a single instrument environment, but employs a variety of policy instruments including price-based, quantity-based and administrative policy measures. Third, the PBC has been promoting financial reforms actively and playing a key role of regulation during special episodes such as the credit crunches in 2013, which has led to the rapid development of financial systems and may further contribute to the economic growth and help balance the growth in different economic sectors.

Keywords: Central bank; History; Monetary policy; Financial reform

JEL Classification: N15; N25; G21

Suggested Citation

Allen, Franklin and Gu, Xian and Qian, Jun, People's Bank of China: History, Current Operations and Future Outlook (October 10, 2017). Available at SSRN: https://ssrn.com/abstract=3018506 or http://dx.doi.org/10.2139/ssrn.3018506

Franklin Allen (Contact Author)

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

Xian Gu

Durham University Business School ( email )

Mill Hill Lane
Durham, DH1 3LB
United Kingdom

Jun Qian

Fanhai International School of Finance, Fudan University ( email )

Shanghai
China
86-21-63895501 (Phone)
86-21-62934572 (Fax)

HOME PAGE: http://www.fisf.fudan.edu.cn/show-65-69.html

University of Pennsylvania - Wharton Financial Institutions Center

2306 Steinberg Hall-Dietrich Hall
Philadelphia, PA 19104
United States

HOME PAGE: http://fic.wharton.upenn.edu/fic/

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