IV Legal Underpinning for a Market-Based Financial System
Author:
Mr. Marc G Quintyn
Search for other papers by Mr. Marc G Quintyn in
Current site
Google Scholar Close
,
Mr. Bernard J Laurens
Search for other papers by Mr. Bernard J Laurens in
Current site
Google Scholar Close
,
Mr. Hassanali Mehran
Search for other papers by Mr. Hassanali Mehran in
Current site
Google Scholar Close
, and
Mr. Tom Nordman https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Mr. Tom Nordman in
Current site
Google Scholar Close
Language:
English
Print Publication Date:
26 Sep 1996
Keywords:
OP; People's Bank of China; monetary policy; PBC branch; government; market; PBC credit; branch network; PBC network; PBC budget; credit policy; Commercial banks; Central bank legislation; Central bank autonomy; Legal support in revenue administration; Nonbank financial institutions

Abstract

Until 1995, the existence and operations of the People’s Bank of China (PBC) were based upon provisional regulations promulgated in 1986. The four state-owned specialized banks and the universal banks each operated on the basis of specific charters. The new reform strategy adopted by the Third Plenum recognized the need for a strong legal framework to underpin the orderly growth of the financial system. By the end of 1993, four draft financial laws were submitted to the State Council: the Law of the People’s Republic of China on the People’s Bank of China, the Law of the People’s Republic of China on Commercial Banks, the Negotiable Instrument Law of the People’s Republic of China, and the Insurance Law of the People’s Republic of China. These laws were all enacted in 1995. Since 1993, the PBC has also promulgated several regulations to streamline banking operations and strengthen its supervision of the financial sector. Furthermore, other laws, such as that on nonbank financial institutions (NBFIs), are still in preparation. This section discusses the main features of the PBC law (passed in March 1995) and of the commercial bank law (passed in June 1995); these laws can be considered the keystones for the further development of the financial system in a market-based economy.

Cited By

Within Same Series

Other IMF Content

Other Publishers Content

  • Collapse
  • Expand
Cover Monetary and Exchange System Reforms in China
Monetary and Exchange System Reforms in China
An Experiment in Gradualism
ISBN:
9781557755629
ISSN:
0251-6365
Publication Date:
26 Sep 1996
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557755629.084
Pages:
100

  • Alexander, William, and others, The Adoption of Indirect Instruments of Monetary Policy, IMF Occasional Paper 126 (Washington: International Monetary Fund, June 1995).

    • Search Google Scholar
    • Export Citation

  • Bell, Michael, Hoe Ee Khor, and Kalpana Kochhar, China at the Threshold of a Market Economy, IMF Occasional Paper 107 (Washington: International Monetary Fund, September 1993).

    • Search Google Scholar
    • Export Citation

  • Blejer, Mario, and others, China: Economic Reform and Macroeconomic Management, IMF Occasional Paper 76 (Washington: International Monetary Fund, January 1991).

    • Search Google Scholar
    • Export Citation

  • Dalla, Ismail, The Emerging Asian Bond Market (Washington: World Bank, 1995).

  • De Wulf, Luc, and David Goldsbrough, “The Evolving Role of Monetary Policy in China,” Staff Papers, International Monetary Fund (Washington), Vol. 33 (June 1986), pp. 209–42.

    • Search Google Scholar
    • Export Citation

  • Fan, Qimiao, and Peter Nolan, eds., China’s Economic Reforms: The Costs and Benefits of Incrementalism (New York: St. Martin’s Press, 1994).

    • Search Google Scholar
    • Export Citation

  • Girardin, Eric, “Difficulties with Credit Control and Financial Sector Reform in China,” OECD Development Center Studies (Paris: Organization for Economic Cooperation and Development, June 1995).

    • Search Google Scholar
    • Export Citation

  • Goldstein, Morris, David Folkerts-Landau, and others, International Capital Markets: Developments, Prospects, and Policy Issues (Washington: International Monetary Fund, September 1994).

    • Search Google Scholar
    • Export Citation

  • Huang, Guabo, “Problems of Monetary Control in China: Targets, Behavior and Mechanism,” China’s Economic Reforms: The Costs and Benefits of Incrementalism, ed. by Qimiao Fan and Peter Nolan (New York: St. Martin’s Press, 1994).

    • Search Google Scholar
    • Export Citation

  • Khor, Hoe Ee, “China—Macroeconomic Cycles in the 1980s,” IMF Working Paper 91/85 (Washington: International Monetary Fund, September 1991).

    • Search Google Scholar
    • Export Citation

  • Khor, Hoe Ee, China’s Foreign Currency Swap Market,” IMF Paper on Policy Analysis and Assessment 94/1 (Washington: International Monetary Fund, December 1993).

    • Search Google Scholar
    • Export Citation

  • McKinnon, Ronald I., Financial Growth and Macroeconomic Stability in China, 1978—92: Implications for Russia and Eastern Europe (Washington: International Monetary Fund, 1993).

    • Search Google Scholar
    • Export Citation

  • Mehran, Hassanali, Bernard Laurens, and Marc, Quintyn, “Interest Rate Liberalization and Money Market Development in a Selected Number of Countries” (Washington: International Monetary Fund, forthcoming, 1996).

    • Search Google Scholar
    • Export Citation

  • People’s Bank of China (1994a), Annual Report 1994 (Beijing: People’s Bank of China, 1994).

  • People’s Bank of China (1994b), China’s Financial Outlook 1994 (Beijing: People’s Bank of China, 1994).

  • People’s Bank of China, Annual Report 1995 (Beijing: People’s Bank of China, 1995).

  • People’s Bank of China, Almanac of China’s Finance and Banking, various years.

  • Perkins, Dwight H., “Reforming China’s Economic System,” Journal of Economic Literature, Vol. 26 (June 1988), pp. 601–45.

  • Sachs, Jeffrey, and Wing Thye Woo, “Structural Factors in the Economic Reforms of China, Eastern Europe, and the Former Soviet Union,” Economic Policy, No. 18 (April 1994), pp. 102–43.

    • Search Google Scholar
    • Export Citation

  • Santorum, Anita, “The Control of Money Supply in Developing Countries: China 1949–1988,” ODI Working Paper 29 (London: Overseas Development Institute, April 1989).

    • Search Google Scholar
    • Export Citation

  • Tseng, Wanda, and others, Economic Reform in China: A New Phase, IMF Occasional Paper 114 (Washington: International Monetary Fund, November 1994).

    • Search Google Scholar
    • Export Citation

  • World Bank, “China—Financial Sector Review: Financial Policies and Institutional Development” (unpublished; Washington: World Bank, 1990).

    • Search Google Scholar
    • Export Citation

  • World Bank, The East Asian Miracle: Economic Growth and Public Policy (New York: Oxford University Press for the World Bank, 1993).

  • World Bank, The Emerging Asian Bond Market—China (Washington: World Bank, 1995).

  • Yi, Gang, Money, Banking, and Financial Markets in China (Boulder, Colorado: Westview Press, 1994).