The People's Bank of China is the central bank of the Republic of China. Under the leadership of the State Council, the People's Bank of China formulates and implements monetary policies, prevents and resolves financial risks, and maintains financial stability, without interference from local governments, government departments at all levels, social groups and individuals.

The Central Bank carries out financial regulation and management on behalf of the country. It is a special financial institution with the nature of a national institution. It has two distinct attributes. On the one hand, the Central Bank is a bank, but not an ordinary bank; It is a special bank; on the other hand, the central bank is a national institution, but it is not a general national institution, but a special national institution. Among these two attributes, the bank attribute is the foundation and the national institutional attribute is the dominant one. The combination and adjustment of bank responsibilities and state functions is the central bank.

The People's Bank of China represents knowledge, prestige, and national monetary sovereignty, which cannot be replaced by any securities, investment, or commercial financial institution. There are many general financial institutions, but there is only one, the People's Bank of China.

Extended information:

1. The People's Bank of China is not a bank in the ordinary sense, not commercial in nature. It is a management department, subordinate to the administrative agency, and it does not have to do everything. Listen to the government and be independent.

2. The People's Bank of China performs the following duties:

(1) Drafting relevant laws and administrative regulations; improving the operating rules of relevant financial institutions; and issuing orders and regulations related to the performance of its duties.

(2) Formulate and implement monetary policies in accordance with the law.

(3) Supervise and manage the inter-bank lending market, inter-bank bond market, foreign exchange market and gold market.

(4) Prevent and resolve systemic financial risks and maintain national financial stability.

(5) Determine RMB exchange rate policy; maintain a reasonable RMB exchange rate level; implement foreign exchange management; hold, manage and operate national foreign exchange reserves and gold reserves.

(6) Issue RMB and manage the circulation of RMB.

(7) Manage the treasury.

(8) Work with relevant departments to formulate payment and settlement rules to maintain the normal operation of the payment and clearing system.

(9) Formulate and organize the implementation of a comprehensive statistical system for the financial industry, and be responsible for data aggregation and macroeconomic analysis and forecasting.

(10) Organize and coordinate national anti-money laundering work, guide and deploy anti-money laundering work in the financial industry, and undertake anti-money laundering fund monitoring responsibilities.

(11) Manage the credit reporting industry and promote the establishment of a social credit system.

(12) As the country’s central bank, engage in relevant international financial activities.

(13) Engage in financial business activities in accordance with relevant regulations.

(14) Undertake other matters assigned by the State Council.

3. The business operations of the central bank are mainly deposits, loans and foreign exchange, but the method is significantly different from that of general financial institutions.

First, the deposits of the central bank mainly consist of fiscal deposits and reserve deposits of financial institutions. Fiscal deposits are the result of the central bank acting as an agent for the national treasury and are purely of a custodial nature. Deposit reserves and deposits from current deposit accounts are the result of the central bank’s centralized deposit reserves and bill clearing services, which are of regulatory and service nature. Therefore, the central bank generally pays no interest or very low interest on deposits, and the interest is decided independently by the central bank, not based on market supply and demand. At the same time, the central bank can also increase or decrease its deposits by adjusting the deposit reserve ratio.

Second, when using funds, it is more based on considerations of the macroeconomic situation, and there are no issues with safety, profitability, or liquidity. Moreover, many central bank funds are used for short-term adjustment purposes.

Third, in order to strengthen its authority and facilitate relevant parties at home and abroad to understand its financial policies, the central bank must regularly publish its business status and relevant information, while general financial institutions do not need to do so.