How to establish China's modern central bank system

Yi Xianrong

It can be said that the 14th Five Year Plan for National Economic and Social Development and two thousand and thirty-five Suggestions on the long-term goals of five Year, even this year fifteen The national development blueprint in also established a new model of China's economic growth in the future, that is, a new model of economic growth led by "internal circulation" 。 From the perspective of finance, the transformation of economic growth mode is actually the change of resource allocation pattern. In other words, the most important content of the new model of economic growth is the reallocation of resources, and finance is the most important platform to withstand, promote and optimize the transformation of the economic growth model. Because if we want to reallocate resources, we must make resources flow easily, and finance is the most important tool to facilitate the flow of resources. Therefore, in order to build a new economic development pattern and promote national scientific and technological innovation, it is necessary to transform the financial model, rebuild China's financial service system, deepen financial reform, and comprehensively enhance the ability of China's financial system to serve the real economy.

Therefore, the primary task of China's future financial reform established in the Proposal is to, Build a modern central bank system. What? Because, From the perspective of financial essence and development history, finance is a trans temporal and spatial resource allocation mode, a tool to transform non-material things into exchange value or increase wealth through credit creation, so as to promote social and economic growth and increase people's well-being. Therefore, finance is also a risk pricing for credit, which plays a magical role in promoting social and economic growth and development. Similarly, since credit creation is a tool to transform non-material interpersonal relationships into material products, if credit creation exceeds the boundary of its possibilities, then financial products may deviate from the value of substantive products, leading to serious distortion of financial risk pricing and even financial crisis. In this case, the excessive expansion of credit creation is the root cause of financial crisis and economic crisis. Therefore, the establishment of the modern central bank and the arrangement of the monetary policy system are all around how to solve this problem. For example, the Bank of England, one of the earliest central banks in history, is how to stabilize the financial market in London in the face of cyclical fluctuations in money and credit acquisition. one thousand nine hundred and fourteen After the establishment of the Federal Reserve in, the modern central bank system has been continuously innovated and improved, and the main task of the modern central bank is to use monetary policy tools to maintain macroeconomic stability and coordinate socio-economic development, so that people and enterprises can operate in a predictable economic environment, reduce consumption and investment risks, and promote the actual output to be as consistent as possible with its potential output, Or the actual output is close to the expected target of potential output. After that, the modern central bank system of various countries was established under different backgrounds and conditions, and made great contributions to promoting economic growth and stabilizing financial markets of various countries.

As far as China is concerned, one thousand nine hundred and eighty-three In, the People's Bank of China began to exercise the functions of the State Central Bank. one thousand nine hundred and ninety-five Year《 Law of the People's Republic of China on the People's Bank of China 》The People's Bank of China has established its status as the central bank of the country in the form of law, and its main function is to formulate and implement monetary policy , prevention and resolution financial risk , Maintenance financial stability 。 in other words, The modern central bank system is the sum of modern monetary policy framework, financial infrastructure service system, systematic financial risk prevention and control system and international financial coordination and cooperation governance mechanism. It can be said that the People's Bank of China has made great contributions to promoting China's economic development and prosperity and maintaining financial stability since it established its position as the national central bank. As pointed out by Yi Gang, the governor of the People's Bank of China, China's financial industry has made brilliant achievements in the past decades. These achievements have a great deal to do with the clear positioning of the functions of the People's Bank of China and its constant adjustment with the changes of the times. especially two thousand and eight The outbreak of the US financial crisis in two thousand and twenty After the outbreak of COVID-19 in, the People's Bank of China played a mainstay role in the reason why China's economy was able to walk away from the crisis quickly. It not only enables China's economy to recover earlier than other economies, but also holds the bottom line that China does not have systemic risks. However, with the emergence of a new model of economic growth, the People's Bank of China, as the central bank, is also imperative to transform its functions. It will no longer stick to the role of formulating and implementing monetary policy, but also take on more transcendental tasks. It will become the highest regulator and coordinator of China's financial market and the maker of market rules. The People's Bank of China will become the central functional department for regulation, management, reform and innovation. Therefore, taking the construction of a modern central bank system as the primary task of China's financial reform in the future also means that the role of the Central Bank of China as a "super central bank" is imminent. As a "super central bank", the functions of the People's Bank of China will also undergo major changes.

First of all, the development mode of China's "super central bank" is not the British style bimodal supervision mode, nor the financial supervision mode of the Federal Reserve. In addition, it takes the reality of China's financial market as the background to establish a modern central bank system that adapts to the new mode of economic growth. The main responsibility of the "super central bank" is to“ We should build financial systems and mechanisms to effectively support the real economy, and improve the ability of the financial system to serve the real economy, rather than making finance just a tool for "money making money". At present, why Chinese enterprises, especially small and medium-sized enterprises, are always "difficult to finance" and why residents always have no good investment opportunities, the biggest problem is that the economic growth model is changing, that is, investment by factors The transformation from inward growth to innovation driven growth has not changed the financial model. Therefore, the most important responsibility of the "super central bank" is to adapt financial services to the new mode of economic growth by means of institutional arrangement, institutional innovation and deepening reform, and establish a financial service system that adapts to the new mode of economic growth. In this regard, the task of the People's Bank of China is a long way to go.

Secondly, establish a financial market order suitable for the new model of economic growth. This includes constantly formulating, modifying, perfecting and maintaining the laws and regulations of the financial market, and more importantly, establishing a market-oriented and impersonal credit system. This is the basis of the basic system of the financial market. Because finance is the risk pricing of credit, if the market-oriented and impersonal credit relationship cannot be established, then the price mechanism of the financial market cannot operate effectively, and the resource allocation carried by finance may be inefficient. At present, many problems in China's financial market stem from the failure to establish market-oriented and impersonal credit relationships. For example, the recent bankruptcy of Baotou Bank and Hengfeng Bank, the prevalence of speculation in China's stock market, and the rigid cashing of financial products lie in the excessive implicit government guarantees for the credit relationship in the financial market. In this case, the financial market practitioners will certainly own the benefits of their operations and transfer the costs of their operations to the society, leading to the prevalence of speculation, fraud, gambling and other behaviors in the financial market. Therefore, the transformation of the current financial model is to comprehensively establish a market-oriented and impersonal credit relationship through the legal system, which is also the most arduous task of the "super central bank" at present and in the future.

Again, follow The Fifth Plenary Session of the Central Committee of the Communist Party of China made a strategic deployment. The "super central bank" should not only do a solid job in financial reform and opening up, improve the money supply regulation mechanism, but also comprehensively and correctly handle the relationship between domestic and foreign financial markets, the relationship between the government and the market. The People's Bank of China is not only the legislator of the financial market system rules, but also the super coordinator and super regulator of the financial market. As pointed out by the Financial Committee of the State Council recently when learning the spirit of the Fifth Plenary Session of the 19th Central Committee“ At present, with the rapid development of financial technology and financial innovation, the relationship between financial development, financial stability and financial security must be handled well. We should implement the spirit of the Fifth Plenary Session, adhere to the principles of marketization, rule of law and internationalization, respect international consensus and rules, and properly handle the relationship between the government and the market. We should strengthen supervision, fully incorporate financial activities into supervision in accordance with the law, and effectively prevent risks. " Here, the future "super central bank" Regulation, management, reform and innovation The basic functions are fully displayed.

Finally, the forward-looking outlook and research on the financial market is an important task of the "super central bank". With the transformation of economic growth mode, the rapid development of network technology, especially the great change that has not been seen in a century, and the pandemic that has emerged in the 21st century, China's financial market will face a series of major challenges and opportunities, and the forward-looking outlook and research of the "super central bank" has become the most important aspect of sustainable and stable financial development. For example, in the past decade, the reason why China's FinTech has been able to lead the world is closely related to the Bank of China's completely open attitude towards modern technology and forward-looking research. Therefore, the Proposal not only requires Securely promoting the research and development of digital currency also requires improving the level of financial science and technology, raising the forward-looking research of financial markets to an important height.

It can be said that the establishment of China's modern central bank system is not only conducive to the realization of the central bank system and mechanism for the four major tasks of currency stability, full employment, financial stability, and balance of payments, but also manages the main gate of money, provides high-quality financial infrastructure services, prevents and controls systemic financial risks, and controls external spillover effects, To promote the formation of a fair and reasonable pattern of international financial governance is to establish China's "super central bank" system. The core of China's "super central bank" is to start from China's initial conditions to create and establish the basic system of China's financial market, reshape the new concept of China's financial market development, look forward to the general direction of China's financial market development in the future, so as to comprehensively improve China's financial service ability for the real economy and adapt to the new model of China's economic growth.