(Source: PBC Monetary Policy Department)
The StateCouncil has recently appointed new members into the Monetary Policy Committee.The Committee is now chaired by Mr. Zhou Xiaochuan, Governor of the People’sBank of China and comprises 12 other members. They are Mr. You Quan, DeputySecretary-General of the State Council, Mr. Zhu Zhixin, Vice Minister of theState Development and Reform Commission, Mr. Jin Liqun, Vice Finance Minister,Madam Wu Xiaoling, Deputy Governor of the People’s Bank of China, Mr. Li Ruogu,Deputy Governor of the People’s Bank of China, Mr. Li Deshui, Commissioner ofthe National Bureau of Statistics, Mr. Guo Shuqing, Administrator of the StateAdministration of Foreign Exchange, Mr. Liu Mingkang, Chairman of the China BankingRegulatory Commission, Mr. Shang Fulin, Chairman of the China SecuritiesRegulatory Commission, Mr. Wu Dingfu, Chairman of the China InsuranceRegulatory Commission, Mr. Xiao Gang, Chairman of China Association of Banksand President of Bank of China, and Mr. Li Yang, Director of Institute ofFinancial Research, China Academy of Social Sciences.
The Monetary Policy Committee wasoriginally established in July 1997 upon approval of the State Council.According to the Regulations on Monetarypolicy Committee of the People’s Bank of China issued by the State Council,the Committee’s major responsibility was to discuss and advise on importantissues related to monetary policy based on macroeconomic targets set by thegovernment. These issues include formulation and adjustment of monetary policy,policy targets setting for a certain period of time, application of policyinstruments, major policy measures to be taken and coordination betweenmonetary policy and other macroeconomic policies.
The Committeeplays its advisory role through regular meetings of its members. Between July1997 and January 2003, the Monetary Policy Committee altogether held 21 regularmeetings in which members had extensive discussions on important policy issueslike money supply, interest rate, exchange rate, open market operations,required reserves, rediscount as well as coordination between monetary policyand other macroeconomic policies. After each regular meeting, the Committeeissues a press release in which main contents of discussion are disclosed andthe future stance of monetary policy is indicated as well. The creation andfunctioning of the Monetary Policy Committee is called for by development ofthe socialist market economic system in China, and it is an institutional innovationcombining domestic and international experiences to strengthen macroeconomicmanagement in China. Such an arrangement has greatly contributed to fosteringformulation and implementation of the monetary policy in a scientific andtransparent way.
In accordancewith the reshuffle plan of the State Council adopted by the 1stPlenary Session of the 10th National People’s Congress, the People’sBank of China will strengthen functions in formulating and implementingmonetary policy so that the central bank could play a more significant role inmacroeconomic management. The composition of the new Monetary Policy Committeereflects such a consideration with its membership broadened to include a DeputySecretary-General in charge of financial affairs in the Sate Council and theChairman of the newly established China Banking Regulatory Commission.Moreover, the China Association of Banks is selected instead of a whollyState-owned commercial bank as the representative institution of the bankingindustry in the Monetary Policy Committee, aiming at comprehensively reflectingviews of the banking sector in the making and implementation of monetarypolicy. With such a change in its membership, the Monetary Policy Committee nowis more representative of various economic sectors, which is conducive toimproving its advisory role, fostering coordination between monetary policy andother macroeconomic policies and encouraging responses from different sectorson the making of monetary policy.
(This message is quoted from Internet information and is not the opinion of this website.)