TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 104

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18.

In

September 1983, the State Council decided that PBOC should concentrate on central banking functions (1)

commercial banking functions were further reduced in January 1984, with the setting up of the Industrial and

PBOC's

Commercial Bank of China.

network of PBOC,

responsibility of

cooperatives.

19.

It took over the urban branch

also charged with the

urban credit

and

was

supervising

the

Apart from the five state specialised banks, a number of full services banks have sprung up in recent

years.

Some are geared to the financial requirements of the local economies, such as the Shenzhen Development Bank, Guangdong Development Bank and Shanghai Pudong Development Some of the others are the financial arms of large

business conglomerates, such as the CITIC Industrial Bank, Everbright Bank and China Merchants Steam Navigation Bank.

Bank.

(1) At present, PBOC is entrusted with the following

functions:

1. study and formulate national

policies and basic systems;

financial directions,

2. control the issue of currency and adjust the volume of

currency circulation in the market;

3. regulate exchange rates of the Renminbi and interest

rates on bank deposits and loans;

4. formulate state credit plan and state cash plan;

5. manage national foreign exchange and gold reserves;

6. act as cashier office for the state;

7. manage financial markets; and

8. sanction the establishment and revocation of financial institutions; supervise and inspect the operations of

all financial institutions.

The function of inspection of financial institutions is shared by the National Audit Administration, established

in 1983.

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