Law of the People's Republic of China on the People's Bank of China
Article 1 This Law is enacted in order to define the status and functions of the People's Bank of China, ensure the correct formulation and implementation of the State's monetary policies, establish and perfect a macro-control system through a central bank and strengthen supervision and control over the banking industry.
Article 2 The People's Bank of China is the central bank of the People's Republic of China.
The People's Bank of China shall, under the leadership of the State Council, formulate and implement monetary policies and exercise supervision and control over the banking industry.
Article 3 The aim of monetary policies shall be to maintain the stability of the value of the currency and thereby promote economic growth.
Article 4 The People's Bank of China shall perform the following functions:
(1) to formulate and implement monetary policies in accordance with law;
(2)to issue Renminbi(RMB) and control its circulation;
(3)to examine, grant approval to, supervise and administer banking institutions in accordance with regulations;
(4)to supervise and control the financial market in accordance with regulations;
(5)to promulgate orders, rules and regulations concerning financial supervision and control and business operation;
(6)to hold,administer and manage the State foreign exchange reserve and gold reserve
(7)to manage the State Treasury
(8)to maintain the normal operation of the systems for making payments and settling accounts;
(9)to be responsible for statistics, investigation, analysis and forecasting concerning the banking industry;
(10)to engage in relevant international banking operations in its capacity as the central bank of the State; and
(11)other functions prescribed by the State Council.
To implement monetary policies, the People's Bank of China may carry out financial operations in accordance with the relevant provisions of Chapter ￠?? this Law.
Article 5 The People's Bank of China shall report its decisions to the State Council for approval concerning the annual money supply, interest rates, foreign exchange rates and other important matters specified by the State Council before they are implemented.
The People's Bank of China shall immediately implement the decisions on monetary policies for matters other than those specified in the preceding paragraph and report them to the State Council for the record.
Article 6 The People's Bank of China shall submit a work report to the Standing Committee of the National People's Congress concerning matters relating to monetary policies and financial supervision and control.
Article 7 The People's Bank of China shall, under the leadership of the State Council, implement monetary policies, perform its functions and carry out its business operations independently according to law and be free from intervention by local governments, government departments at various levels, public organizations or individuals.
Article 8 Al capital of the People's Bank of China is invested by the State and owned by the State.
Chapter2 organizational Structure
Article 9 The People's Bank of China shall have a Governor and a certain number of Deputy Governors.
The candidate for the Governor of the People's Bank of China shall be nominated by the Premier of the State Council and decided by the National People's Congress; when the National People's Congress is not in session, the Governor shall be decided by the Standing Committee of the National People's Congress and appointed or removed by the President of the People's Republic of China. The Deputy Governors of the People's Bank of China shall be appointed or removed by the Premier of the State Council.
Article 10 The People's Bank of China shall practise a system wherein the Governor shall assume overall responsibility. The Governor shall direct the work of The People's Bank of China, the Deputy Governors shall assist the Governor in his or her work.