《金融专业英语(第2版)》教学课件291

金融专业PartOneMoneyandEconomics英语123MoneyFinancialMarketsPolitiesandEconomicsContentsMoney1Chapter章节结构

KeyTopics（关键点）2Text（阅读课文）3Notes（课文注释）4Exercises（课后练习）51LearningObjectives（学习目标）6AdditionalReadings（扩展阅读）Chapter1MoneyLearningObjectivesLearningObjectives12345Knowthedefinitionofmoney;Learnthefunctionsofmoney;Developprecisedefinitionsbyexploringthefunctionsofmoney,lookingatwhyandhowitpromoteseconomicefficiency,tracinghowitsformshaveevolvedovertime;Understandhowthemoneycanbemeasured;Learnhowthemoneypolicycaneffecttheeconomy.1WhatisMoney;2FunctionsofMoney;3Evolutionofthepayment;4MeasuringMoney;5MoneyPolicy.KeyTopicsSection1.1WhatisMoney?Section1.2FunctionsofMoneySection1.3EvolutionofthePaymentSystemSection1.4MeasuringMoneyTextcontentsWhatisMoneyHistoryofmoneyMeaningofMoneySection1.1WhatisMoney?Ifyoucanactuallycountyourmoney,thenyouarenotreallyarichman.-J.PaulGettySection1.1WhatisMoney?“金钱如果可以计算，那还不算真正的富有”

J.PaulGetty[保罗·盖蒂，1892—1976，石油怪杰，20世纪60年代世界首富。1957年美国《财富》杂志评出的世界首富]“Money”,whatisthemoneyintheeyeofpeople?Whatistheconceptionofmoneyintheviewsofeconomics?Whatis“Money”?在大家的眼中，到底什么才是“金钱”？Whatis“Money”?Economistsdefinemoney(alsoreferredtoasthemoneysupply)asanythingthatisgenerallyacceptedinpaymentforgoodsorservicesorintherepaymentofdebts.在一般情况下，货币是在任何形式或可核查的记录中，被普遍接受作为付款的商品和服务，并在一个特定的国家或社会经济背景下可以偿还的债务。Whatis“Money”?ImagineaworldwithoutusingofmoneyBarter(物物交换)Whatis“Money”?Whatis“Money”?PapermoneyorbanknoteswerefirstusedinChinaduringtheSongDynasty.Thesebanknotes,knownas“jiaozi”,evolvedfrompromissorynotesthathadbeenusedsincethe7thcentury.Inthe13thcentury,papermoneybecameknowninEuropethroughtheaccountsoftravelers,suchasMarcoPoloandWilliamofRubruck.MarcoPolo’saccountofpapermoneyduringtheYuanDynastyisthesubjectofachapterofhisbook,TheTravelsofMarcoPolo.1.1.1HistoryofmoneyEconomistsdefinemoney(alsoreferredtoasthemoneysupply)asanythingthatisgenerallyacceptedinpaymentforgoodsorservicesorintherepaymentofdebts.1.1.2MeaningofMoney1.2.1MediumofExchange1.2.2UnitofAccount1.2.3StoreofMoney1.2.4StandardofdeferredPaymentSection1.2FunctionsofMoney"Whethermoneyisshells,orrocks,orgold,orpaper,ithasfourprimaryfunctionsinanyeconomy:asamediumofexchange,aunitofaccount,astoreofvalue,andastandardofdeferredpayment.Ofthefourfunctions,itsfunctionasamediumofexchangeiswhatdistinguishesmoneyfromotherassetssuchasstocks,bonds,andhouses.”无论是贝壳，还是岩石，还是黄金，或者是纸，货币在任何经济中都有四个主要功能：作为交换媒介，价值尺度，价值储藏手段，延期支付手段。四个标准中的交换媒介，可以使货币区别于其他资产，如股票、债券和房子的货币。Section1.2FunctionsofMoneyInalmostallmarkettransactionsinoureconomy,moneyintheformofcurrencyorchecksinamediumofexchange(交易媒介）;itisusedtopayforgoodsandservices.1.2.1MediumofExchangeThesecondroleofmoneyistoprovideaunitofaccount（价值尺度);thatis,itisusedtomeasurevalueintheeconomy.Wemeasurethevalueofgoodsandservicesintermsofmoney,justaswemeasureweightintermsofpoundsordistanceintermsofmiles.1.2.2UnitofAccountMoneyalsofunctionsasastoreofvalue(价值储藏手段);itisarepositoryofpurchasingpowerovertime.1.2.3StoreofValueAnagreedmeasurethatenablescontractstobewrittenforfuturereceiptsandpaymentsiscalledastandardofdeferredpayment(延期支付手段).1.2.4StandardofDeferredPaymentTheformsofmoneySection1.3EvolutionofthePaymentSystemChecksElectronicorDigitalCommodityMoneyPaper1.3.1TheFormsofMoneyArewemovingtoacashlesssociety?请举例1.3.1TheFormsofMoneyDebitCardsStored-ValueCardsElectronicCashElectronicChecksElectronicorDigital理论联系实际（日常生活）：支付宝，wechatpayetc.Tomeasuremoney,weneedaprecisedefinitionthattellsusexactlywhatassetsshouldbeincluded,therearetwowaysofobtainingaprecisedefinitionofmoney:thetheoreticalapproachandtheempiricalapproachSection1.4MeasuringMoneySection1.4MeasuringMoneyThefederalreserve’smonetaryaggregatesTheoreticalandEmpiricalDefinitionofMoneythemoneysupplyisthetotalamountofmonetaryassetsavailableinaneconomyataspecifictime。Moneysupplydataarerecordedandpublished,usuallybythegovernmentorthecentralbankofthecountry.Thedifferenttypesofmoneyaretypicallyclassifiedas“Ms”.The“Ms”usuallyrangesfromM0(narrowest)toM3(broadest),butwhich“Ms”isactuallyfocusedoninpolicyformulationdependsonthecountry’scentralbank.MoneysupplyM0:Insomecountries,M0includesbankreserves,soM0isreferredtoasthemonetarybase,ornarrowmoney.M0=NotesandcoinsincirculationM1:BankreservesarenotincludedinM1.

M1=M0+Traveler’schecksofnon-bankissuers+Demanddeposits+OthercheckabledepositsM2:RepresentsM1and“closesubstitutes”forM1.M2isabroaderclassificationofmoneythanM1.M2isakeyeconomicindicatorusedtoforecastinflation.

M2=M1+Savingsdeposits

+Timedepositslessthan$100,000andmoney

marketdepositaccountsforindividualsMoneysupplyM3:M2pluslargeandlong-termdeposits.

M3=M2+Largetimedeposits,institutionalmoneymarketfunds,short-termrepurchaseandotherlargerliquidassetsMoneysupplyThecontroloftheamountofmoneyintheeconomyisknownasmonetarypolicy.Monetarypolicyistheprocessbywhichagovernment,centralbank,ormonetaryauthoritymanagesthemoneysupplytoachievespecificgoals.Section1.5MoneyPolicyIntheUS,theFederalReserveisresponsibleforcontrollingthemoneysupply,whileintheEuroareatherespectiveinstitutionistheEuropeanCentralBank.OthercentralbankswithsignificantimpactonglobalfinancesaretheBankofJapan,thePeople’sBankofChina,andtheBankofEngland.Section1.5MoneyPolicychangingtheinterestrateatwhichthecentralbankloansmoneyto(orborrowsmoneyfrom)thecommercialbanks；currencypurchasesorsales；increasingorloweringgovernmentborrowing；increasingorloweringgovernmentspending；manipulationofexchangerates；raisingorloweringbankreserverequirements；regulationorprohibitionofprivatecurrencies；taxationortaxbreaksonimportsorexportsofcapitalintoacountry.Someofthetoolsusedtocontrolthemoneysupply下节课见金融专业PartOneMoneyandEconomics英语FinancialMarkets2Chapter章节结构

KeyTopics（关键点）2Text（阅读课文）3Notes（课文注释）4Exercises（课后练习）51LearningObjectives（学习目标）6AdditionalReadings（扩展阅读）Chapter2FinancialMarketsLearningObjectivesLearningObjectives12345Knowthedefinitionandthetypesoffinancialmarkets;Understandthefunctionsoffinancialmarkets;LearnhowtomeasuretheInterestRates;KnowthedeterminantsofAssetDemand;Understandinterestratesandportfoliochoice.

KeyTopicsKeyTopics23456derivativeproductscurrencymarketsthefunctionsofinterestrates1whatisFinancialMarket?raisingcapitals7portfoliochoiceWhatisFinancialMarket?1Raisingcapitals;2Derivativeproducts;3Currencymarkets;4ThefunctionsofFinancialMarkets;5Interestrates;6Portfoliochoice.7KeyTopics

KeyTopicsSection2.2FunctionsofFinancialMarketsSection2.3Currency(Money)marketsSection2.4CapitalmarketsSectionSection2.5DerivativeproductsmarketTextcontentsSection2.1WhatisFinancialMarket?FinancialMarket2.1.1Definitionoffinancialmarket2.1.2ConstituentsoffinancialmarketSection2.1WhatisFinancialMarket?Withinthefinancialsector,theterm“financialmarkets”isoftenusedtoreferjusttothemarketsthatareusedtoraisefinance:forlongtermfinance,theCapitalmarkets;forshorttermfinance,theMoneymarkets.2.1.1DefinitionoffinancialmarketAnothercommonuseofthetermisasacatchallforallthemarketsinthefinancialsector,suchas:capitalmarkets,commoditymarkets,moneymarkets,derivativesmarkets,futuresmarkets,insurancemarkets,foreignexchangemarkets,etc..Thefinancialmarketisabroadtermdescribinganymarketplacewheretradingofsecuritiesincludingequities,bonds,currenciesandderivativesoccur.Somefinancialmarketsaresmallwithlittleactivity,whilesomefinancialmarketsliketheNewYorkStockExchange(NYSE)tradetrillionsofdollarsofsecuritiesdaily.2.1.1DefinitionoffinancialmarketTheNewYorkStockExchangein2015.Founded：May17,1792;226yearsago2.1.1DefinitionoffinancialmarketTheflooroftheNewYorkStockExchangein19081.ConstituentsoffinancialmarketbasedonmarketlevelsPrimarymarket.Primarymarketisamarketfornewissuesornewfinancialclaims.Secondarymarket.It’samarketforsecondarysaleofsecurities.Inotherwords,securitieswhichhavealreadypassedthroughthenewissuemarketaretradedinthismarket.2.1.2Constituentsoffinancialmarket2.ConstituentsoffinancialmarketbasedonsecuritytypesMoneymarket.Moneymarketisamarketfordealingwithfinancialassetsandsecuritieswhichhaveamaturityperiodofuptooneyear.Inotherwords,it’samarketforpurelyshorttermfunds.Capitalmarket.Acapitalmarketisamarketforfinancialassetswhichhavealongorindefinitematurity.Capitalmarketmaybefurtherdividedinto:①industrialsecuritiesmarket;②Govt.securitiesmarketand;③longtermloansmarket.2.1.2ConstituentsoffinancialmarketFunctionsoffinancialmarket2.2.1IntermediaryFunctions2.2.2FinancialFunctionsSection2.2FunctionsofFinancialMarketsTransferofResourcesEnhancingincomeProductiveusageCapitalFormationPricedeterminationSaleMechanismInformation2.2.1IntermediaryFunctionsProvidingtheborrowerwithfundssoastoenablethemtocarryouttheirinvestmentplans.Providingthelenderswithearningassetssoastoenablethemtoearnwealthbydeployingtheassetsinproductiondebentures.Providingliquidityinthemarketsoastofacilitatetradingoffunds.2.2.2FinancialFunctionsItprovidesliquiditytocommercialbank.Itfacilitatescreditcreation.Itpromotessavings.Itpromotesinvestment.Itfacilitatestobalanceeconomicgrowth.Itimprovestradingfloors.2.2.2FinancialFunctions2.3.1Participants2.3.2Functionsofthemoneymarket2.3.3CommonmoneymarketinstrumentsSection2.3Currency(Money)marketsAsmoneybecomesacommodity,themoneymarketbecomesacomponentofthefinancialmarketsforassetsinvolvedinshort-termborrowing,lending,buyingandsellingwithoriginalmaturitiesofoneyearorless.Section2.3Currency(Money)marketsBanksFinancecompaniesGovernmentinstitutesImporters/ExportersRetailandinstitutionalmoneymarketfundsCashmanagementprogramsSpeculatorsTourists2.3.1Participants2.3.2Functionsofthemoneymarket12345FinancingTradeFinancingIndustryProfitableInvestmentSelf-SufficiencyofCommercialBankHelptoCentralBankThemoneymarketfunctionsare:CertificateofdepositRepurchaseagreementsCommercialpaperEurodollardepositFederalagencyshort-termsecuritiesFederalfundsMunicipalnotesTreasurybillsMoneyfundsForeignexchangeswapsShort-livedmortgage-backed-andasset-backedsecurities2.3.3CommonmoneymarketinstrumentsMunicipalnotes—(IntheUS)Short-termnotesissuedbymunicipalitiesinanticipationoftaxreceiptsorotherrevenues.Treasurybills—Short-termdebtobligationsofanationalgovernmentthatareissuedtomatureinthreetotwelvemonths.Moneyfunds—Pooledshortmaturity,highqualityinvestmentswhichbuymoneymarketsecuritiesonbehalfofretailorinstitutionalinvestors.2.3.3Commonmoneymarketinstruments2.4.1Deeplyviewtocapitalmarket2.4.2Examplesofcapitalmarkettransactions2.4.3RaisingCapitalsSection2.4CapitalmarketsCapitalmarketsarefinancialmarketsforthebuyingandsellingoflong-termdebtorequity-backedsecurities.Thesemarketschannelthewealthofsaverstothosewhocanputittolong-termproductiveuse,suchascompaniesorgovernmentsmakinglong-terminvestments.Section2.4Capitalmarkets1.DifferencebetweenmoneymarketsandcapitalmarketsThemoneymarketsareusedfortheraisingofshorttermfinance,sometimesforloansthatareexpectedtobepaidbackasearlyasovernight.Whereasthecapitalmarketsareusedfortheraisingoflongtermfinance,suchasthepurchaseofshares,orforloansthatarenotexpectedtobefullypaidbackforatleastayear.2.4.1Deeplyviewtocapitalmarket2.DifferencebetweenregularbanklendingandcapitalmarketsRegularbanklendingisnotusuallyclassedasacapitalmarkettransaction,evenwhenloansareextendedforaperiodlongerthanayear.2.4.1Deeplyviewtocapitalmarket1.AgovernmentraisingmoneyontheprimarymarketsWhenagovernmentwantstoraiselongtermfinanceitwilloftensellbondstothecapitalmarkets.2.AcompanyraisingmoneyontheprimarymarketsWhenacompanywantstoraisemoneyforlongterminvestment,oneofitsfirstdecisionsiswhethertodosobyissuingbondsorshares.2.4.2ExamplesofcapitalmarkettransactionsIndividualsborrowmoneyviabankers'loansforshorttermneedsorlongertermmortgagestohelpfinanceahousepurchase.Companiesborrowmoneytoaidshorttermorlongtermcashflows.Theyalsoborrowtofundmodernizationorfuturebusinessexpansion.Governmentsoftenfindtheirspendingrequirementsexceedtheirtaxrevenues.Manyborrowershavedifficultyraisingmoneylocally.TheyneedtoborrowinternationallywiththeaidofForeignexchangemarkets.2.4.3RaisingCapitalsSection2.5Derivativeproductsmarket2.5.2ForwardContracts2.5.1FutureContracts2.5.3OptionalcontractsInthefinancialmarkets,stockprices,bondprices,currencyrates,interestrates,anddividendsgoupanddown,creatingrisk.Derivativeproductsarefinancialproductswhichareusedtocontrolriskorparadoxicallyexploitrisk.Section2.5DerivativeproductsmarketInfinance,afuturescontract(morecolloquially,futures)isastandardizedcontractbetweentwopartiestobuyorsellaspecifiedassetofstandardizedquantityandqualityforapriceagreedupontoday(thefuturesprice)withdeliveryandpaymentoccurringataspecifiedfuturedate,thedeliverydate.2.5.1FutureContractsAforwardcontractorsimplyaforwardisanon-standardizedcontractbetweentwopartiestobuyortosellanassetataspecifiedfuturetimeatapriceagreedupontoday.Thisisincontrasttoaspotcontract,whichisanagreementtobuyorsellanassettoday.Thepartyagreeingtobuytheunderlyingassetinthefutureassumesalongposition,andthepartyagreeingtoselltheassetinthefutureassumesashortposition.2.5.2ForwardContractsAnoptioncontract,orsimplyoption,isdefinedas“apromisewhichmeetstherequirementsfortheformationofacontractandlimitsthepromisor’spowertorevokeanoffer.”Anoptioncontractisatypeofcontractthatprotectsanoffereefromanoffer'sabilitytorevokethecontract.2.5.3Optionalcontracts下节课见金融专业PartOneMoneyandEconomics英语PolitiesandEconomics3Chapter章节结构

KeyTopics（关键点）2Text（阅读课文）3Notes（课文注释）4Exercises（课后练习）51LearningObjectives（学习目标）6AdditionalReadings（扩展阅读）Chapter3PolitiesandEconomicsLearningObjectivesLearningObjectives12345Understandtherelationshipbetweenpolitiesandeconomy;LearnthedefinitionofMacroeconomists;Understandhowdidthecentralbankconsideraboutmonetarypolicy;Understandhowdidthepolicymakerinterveningeconomy;Understandtheevolutionofpoliticaleconomy.1Macroeconomics&polities;2Gamesbetweenpolicymakersandvoters;3Gamesbetweenpolicymakers4AngeneralperspectiveonthePoliticalEconomyof“BigChange”;5Anexplosivechangeontheevolution.KeyTopicstextcontentsSection3.2AnGeneralPerspectiveonthePoliticalEconomyof“BigChange”Section3.1Macroeconomics&PolitiesSection3.3ExplosiveChangeofevolutionandCommunitarianCollectiveOwnershipWhatisMoney3.1.1Gamesbetweenpolicymakersandvoters3.1.2GamesbetweenPolicyMakersSection3.1Macroeconomics&PolitiesYouhaveheardtheargument:Politiciansavoidtheharddecisions,theypandertotheelectorate,partisanpolitiesleadstogridlock,andnothingevergetsdone,Discussiontheflawsofdemocracygoesfarbeyondthescopeofthischapter.Whatwecandohereistoreviewbrieflyhowtheseargumentsapplytomacroeconomicpolicy,thenlookattheempiricalevidence,andseewhatlightitshedsontheissueofpolicyrestraints.3.1.1GamesbetweenpolicymakersandvotersAnotherlineofargumentfocusesnotongamesbetweenpoliticiansandvoters,butratherongamesbetweenpoliticalparties.3.1.2GamesbetweenPolicyMakers3.2.1TheSocial-PoliticalContextandCo-Evolution3.2.2Embeddedness3.2.3TheDilemmaofKnowledgeasaProductandaResource3.2.4TheGlobalperspectiveontheevolution3.2.5EvolutionarySocial-Economic“intricacy”3.2.6TheInitiationofSelfRe-EnforcingGrowthSection3.2AnGeneralPerspectiveonthePoliticalEconomyof“BigChange”Section3.3ExplosiveChangeofevolutionandCommunitarianCollectiveOwnership3.3.1TheFall-VarietyConstrainingOrder3.3.2SelfOrganizationandEconomics3.3.3CommunitarianCollectiveOwnershipandStrategicNetworksAstateofanarchyisnotconducivetoenterprise.Wemustnotrestrictourfieldofvisionliketraditionalhistory.Itfocusesonaparticulargeo-politicalcontext,e.g.anationorempire.Aprocessviewismoreappropriatetoanintegralperspective.3.3.1TheFall-VarietyConstrainingOrderIntheworldnowoneseessimilarratesofincreaseinvaluecreation.Theseareachievedbyenterprise’sde-capitalizingusing“leanthinking”.Eachenterprisestaysleanbybeinginavalue-generatingnetworkofenterprisesprovidingallthecompetenciesneeded.Eachenterpriseinsuchanetworkfocusesonitscorecompetenceandsoprovidesgreateraddedvaluethanwouldbepossibleifitattemptedtocarryoutallfunctionsitself.Allelseisoutsourcedtoothersinthenetwork.3.3.2SelfOrganizationandEconomicsGlobalcollectivitiesrelyonasocialidentityforeachenterprisereliablyabletopredictitsbehavior.Socialcohesivenessissustainedusingreciprocalexchange–wehelpyoubecauseyoureliablyhelpus.Traditionaleconomicexchangeofagoodforanequallyvaluedconsiderationdoesnotexistinsuchasystem.3.3.3CommunitarianCollectiveOwnershipandStrategicNetworks下节课见金融专业PartTwoBankingIndustryinChina英语456CentralBank—PBCCommercialBanksSupervisionofBankingContentsCentralBank—PBC4ChapterChapter4CentralBank—PBCStudentswillbeableto:1234UnderstandthereformofPBCMasterthefunctionsofPBCFamiliarwiththeinstrumentsofPBCGraspthetransformationofPBC1MasterdefinitionofCentralBank2UnderstandthereformofPBC3MasterthefunctionsofPBC4KnowtheinstrumentsofPBC5GraspthetransformationofPBCKeyTopics6KnowreserverequirementSection4.1TheReformofPBCSection4.2TheFunctionsofPBCSection4.3TheInstrumentsofCentralBankChapter4CentralBank—PBCSection4.1TheReformofPBC4.1.2TransformationofPBC4.1.1DefinitionofCentralBank4.1.3ReformtheCurrentFinancialStructureOnDecember1,1948,thePeople’sBankofChina(PBC*)wasestablished.In1978,Chinahascarriedoutaseriesofsignificantreformsinitsbankingsystem,andstrengtheneditsopeningtotheoutsideworld.InSeptember1983,theStateCouncil*decidedtohavethePBCfunctionasacentralbank.

In1984,thePeople’sBankofChinastoppedhandlingcreditandsavingsbusiness.OnMarch18,1995

,people’sRepublicofChinaonthePeople’sBankofChinaadopted.Section4.1TheReformofPBCAcentralbankormonetaryauthorityisamonopolizedandoftennationalizedinstitutiongivenprivilegedcontrolovertheproductionanddistributionofmoneyand

credit.4.1.1DefinitionofCentralBankThefirstprototypesformoderncentralbanksweretheBankofEnglandandtheSwedishRiksbank,whichdatedbacktothe17thcentury.TheBankofEnglandwasthefirsttoacknowledgetheroleof

lenderoflastresort.4.1.1DefinitionofCentralBankThecentralbankingsystemintheUSisknownastheFederalReserveSystem*(commonlyknownas“theFed”),whichiscomposedof12regionalFederalReserveBankslocatedinmajorcitiesthroughoutthecountry.4.1.1DefinitionofCentralBankThedecisionsoftheNationalFinancialWorkConferenceinNovember1997andtheNinthNationalPeople’sCongressinMarch1998acceleratedthereformofthePBC.Significantrestructuringtookplaceatitsheadoffice.Forexample,thesupervisoryfunctionofregulatorshasbeenfurtherstrengthened4.1.2TransformationofPBCThegoalsofthefinancialstructurereformare:tosetupamacro-regulatorysystemofthecentralbankthatimplementsindependentlythemonetarypolicyundertheleadershipoftheStateCouncil;tosetupthefinancialorganizationsystemthatseparatesthepolicyfinancefromthecommercialfinance,andmakesthestate-commercialbanksprincipalpartwithdifferentfinancialinstitutionscoexisting;andtobuildafinancialmarketsystemwhichisuniformandopen,withorderlycompetitionandstrictadministration.4.1.3ReformtheCurrentFinancialStructureClearlydefinetheresponsibilitiesofPBCofficesatalllevels,andtransformPBC’sfunctions.PBCisthefunctionalsectorundertheleadershipofthestateresponsiblefortheadministrationofthefinancialindustry.1.Clearandtransform4.1.3ReformtheCurrentFinancialStructureReformandPerfecttheMonetaryPolicySystemTheultimategoalofthePeople’sBankofChina’smonetarypolicyistomaintainmonetarystabilityandtherebypromoteeconomicgrowth.Theintermediateandoperationaltargetsofmonetarypolicyaremoneysupply,totalcredit,inter-bankofferedrateandbankreserveratio*.2.ReformandPerfect4.1.3ReformtheCurrentFinancialStructureTheinstrumentsofmonetarypolicyare:statutoryreservedrateofdeposit,loanofcentralbank,officialre-discountrate,openmarketoperations,foreignexchangeoperationsofcentralbank,loanrestrictedvolume,depositandloanratesofcentralbank.4.1.3ReformtheCurrentFinancialStructurePerfectFinancialLawsandRegulations,EnforceFinancialSupervisionandAdministrationMakethebestuseoftimetodrawuplawssuchasBankingLawofthePeople’sRepublicofChina,LawofPeople’sBankofChina,LawofBills*,etc.,andsubmitallofthemtotheNationalPeople’sCongressforexamination.3.PerfectandEnforce4.1.3ReformtheCurrentFinancialStructureMakethebestuseoftimetoformulateandperfecttheadministrativeregulationsandsupervisingcriteriafordifferentkindsoffinancialinstitutions,andconformthemodeofsupervisionandadministrationtolawsandregulations.4.1.3ReformtheCurrentFinancialStructureReformPBC’sFinancialSystemAbolishtheprofitretainingandtaxpayingsystem*ofbranchesofPBCatdifferentlevels.4.Reform4.1.3ReformtheCurrentFinancialStructure4.2.3TheMainFunctionsofPBC4.2.2TheBiggestChangeoftheFunctionsofPBC4.2.1TheReasonforTransformationSection4.2TheFunctionsofPBCLnordertostrengthenfinancialsupervisionaswellastoenhancetheindependenceoftheCentralBankinformulatingandimplementingthemonetarypolicy*,ChinaestablishedtheChinaBankingRegulatoryCommission(CBRC)inApril,2003asaspecialwatchdog*forthebankingindustry.4.2.1TheReasonforTransformationThemajortargetofbankingsupervisionrestsinensuringthesafetyandsoundnessofthebankingsystemandthelegalinterestsofdepositorswhilethatofthemonetarypolicyresidesinmaintainingstabilityofthecurrencyandinturnpromotingeconomicdevelopment.[2]4.2.1TheReasonforTransformationTherefore,afterthePBChasreleaseditsfunctionsoflicensingtheentryofmarketbybanks,assetmanagementcompanies*(AMCs),trustandinvestmentcompanies*(TICs)andotherdepositoryinstitutionsaresupervisingtheiroperations,itneedstogreatlystrengthenitsfunctionsinmonetarypolicy,inmonitoringofthefinancialmarket,informulationofoperationalrulesforfinancialinstitutions,insafeguardingtheoverallfinancialstability,aswellasinpreventionandmitigationofsystemicrisks.4.2.2TheBiggestChangeoftheFunctionsofPBCItalsoneedstocontinuetocarryoutthefunctionsinforeignexchangeadministration,incurrencyissuance*,inactingasthefiscalagent*,inpaymentsandclearing,inlegalframeworkconstructionaswellasinrepresentingtheChinesegovernmentininternationalfinancialcooperationandincollectingandconductinganalysisoffinancialstatisticaldata.4.2.2TheBiggestChangeoftheFunctionsofPBCStrengtheningtheFunctionofPBCTransformingtheModeofFinancialManagementStrengtheningtheFunctionofAnti-money-laundering*StrengtheningAdministrationofCreditInformationSystem*Fromnowon,thebiggestchangeofthefunctionsofthePBCislikelytotakeplacemainlyasfollows.4.2.2TheBiggestChangeoftheFunctionsofPBCFirstly,centralbankscontrolandmanipulatethemoneysupply,issuingcurrencyandsettinginterestratesonloansandbonds.4.2.3TheMainFunctionsofPBCAlthoughtheirresponsibilitiesrangewidely,dependingontheircountry,centralbanks'duties(andthejustificationfortheirexistence)usuallyfallintothreeareas.Secondly,theyregulatememberbanksthroughcapitalrequirements,reserverequirements*anddepositguarantees,amongothertools.Finally,acentralbankalsoactsasanemergencylendertodistressedcommercialbanksandotherinstitutions,andsometimesevenagovernment.Fromnowon,thePBCwillmainlyperformthefollowingfunctionsastheCentralBankinChina:4.2.3TheMainFunctionsofPBC1ContinuetoImplementtheSoundMonetaryPolicytoPreservetheSoundM