ABSTRACT
China's financial system as presently constituted includes nine national level organizations under two distinct administrative jurisdictions: the People's Bank of China (PBC) and the Ministry of Finance (MOF). On the fiscal side the MOF is the most important institution. This chapter looks at each of China's main financial institutions, commenting on their functions, organizational structure, and role in planning, relationship to other supervisory organs, and quantitative significance. The PBC is by far China's most comprehensive banking institution, with an organizational network permeating the entire economy. The PBC is also responsible for handling transactions in gold and other precious metals, setting purchase prices subject to State Council approval. Interbranch relationships among Agricultural Bank of China (ABC) units at all levels and between ABC units and PBC branches have the characteristics of dealings between independent accounting units, with interest calculated and paid on interbank deposits.
