The latest notice from the People's Bank of China

According to the central bank’s announcement on June 17, in order to maintain reasonable and sufficient liquidity in the banking system, on June 17, 2023, the People’s Bank of China launched a 10 billion yuan reverse repurchase operation through interest rate bidding, and the winning interest rate was 2.10%. Today, as the 10 billion yuan reverse repurchase expires, the People's Bank of China has achieved zero investment and zero withdrawal in the open market.

In terms of exchange rates, the People's Bank of China authorized the China Foreign Exchange Trading Center to announce that on June 17, 2023, the central parity rate of the RMB exchange rate in the inter-bank foreign exchange market was 1 US dollar to 6.6923 yuan, and 1 euro to 7.0582 yuan. 100 yen to RMB 5.0471, HKD 1 pound to RMB 0.85255, 1 pound to RMB 8.2620, and 1 Australian dollar to RMB 4.7110. New Zealand dollar 4.2537 yuan, Singapore dollar 4.8378 yuan, Swiss franc 6.9226 yuan, Canadian dollar 5.1668 yuan, 1 yuan 0.65744 ringgit, 1 yuan 8.7228 Russian rubles, 1 yuan 2.3913 South African rand, 1 yuan 192.39 Korean won. 1 yuan to 0.54875 United Arab Emirates dirham, 1 yuan to 0.56059 Saudi riyal, 1 yuan to 56.4824 Hungarian forint, 1 yuan to 0.66946 Polish zloty, 1 yuan to 1.0537 Danish kroner, 1 yuan To 1.5163 Swedish krona, 1 yuan to 1.4881 Norwegian krone, 1 yuan to 2.58479 Turkish lira, 1 yuan to 3.5%.

Yesterday, interest rates across all terms fell across the board, and funding remained loose. The overnight Shanghai Interbank Offered Rate (Shibor) was unchanged from the previous day at 1.413%. The 7-day Shibor fell 2 basis points to 1.688%. Judging from the repo rate performance, the weighted average interest rate of DR007 dropped to 1.6148%, which is lower than the policy interest rate. The Shanghai Stock Exchange's 1-day reverse repurchase rate (GC001) dropped to 1.715%.

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National Business Daily

National Business Daily Related Questions and Answers: Related Questions and Answers: What are the differences between the People's Bank of China and other banks? the difference?

Hello, my country's banks are divided into central bank, policy bank, commercial bank and investment bank. What you are asking about should be the difference between the People's Bank of China and commercial banks. To put it simply, the People's Bank of China is an administrative agency and commercial banks are financial enterprises. The difference between the two is the difference between government and enterprises, and the difference between the regulator and the regulated.

First of all, let’s introduce the basic knowledge of the People’s Bank of China.

As my country's central bank (central bank), the People's Bank of China is responsible for maintaining financial stability, treasury management, currency, etc. It can be understood as the "bank that supervises commercial banks" and is the regulatory agency for many commercial banks.

Although the central bank is named after a bank, it is one of the constituent departments of the State Council. It is a national ministry and commission at the same level as the Ministry of Finance and the National Development and Reform Commission, and is a standard administrative agency.

In other words, the staff of the central bank’s head office are civil servants and are recruited through the national examination.

It is worth noting that the local branches of the central bank are quite special. They are non-legal entities and are dispatched offices of higher-level units. The staff of the central bank branches are not civil servants or business staff, but are called "bank staff". They are recruited through special examinations organized by the central bank themselves and are managed with reference to civil servants.

Secondly, let’s introduce the relevant concepts of commercial banks.

There are a large number of commercial banks in our country, including the six major state-owned commercial banks of Industry, Agriculture, China, Construction, Communications and Postal Savings Bank, which are financial central enterprises.

There are also national joint-stock commercial banks such as China Merchants Bank, China CITIC Bank, Industrial Bank, and Shanghai Pudong Development Bank, as well as urban commercial banks such as Bank of Shanghai, Bank of Beijing, and Bank of Ningbo, as well as rural commercial banks, village banks, etc. wait.

Commercial banks are enterprises, mainly engaged in business activities, including taking deposits, granting loans, handling settlements, issuing bonds, buying and selling foreign exchange, bank card business, etc.

Therefore, the staff of commercial banks are corporate employees and are recruited by each bank.

Then, let’s introduce the relationship between the central bank and commercial banks.

To put it simply, the central bank is the supervisor of commercial banks. When commercial banks engage in business activities, they need to implement the policies formulated by the central bank. The central bank has the right to guide, supervise and inspect the business practices of commercial banks.

1. Commercial banks need to implement the RMB management regulations, gold management regulations, anti-money laundering regulations, foreign exchange management regulations, inter-bank lending regulations, etc. formulated by the central bank.

2. The central bank will determine the deposit reserve ratio, and commercial banks must deposit corresponding reserves in accordance with regulations.

3. The central bank will determine the benchmark interest rate. The deposit interest rate and loan interest rate of commercial banks can only fluctuate up or down within a certain range based on the benchmark interest rate.

4. The central bank can investigate and punish commercial banks for violations.

Finally, let’s introduce the difference between the central bank and commercial banks.

1. Institutional attributes are different.

The central bank’s head office is an administrative agency, consisting of a number of departments, bureaus, branches, public institutions and state-owned enterprises, which are managed in the manner of national ministries and commissions.

Commercial banks are enterprises. Even large financial central enterprises such as the Industrial, Agricultural, and Construction Banks are still enterprises in nature and must operate in a market-oriented manner.

2. The identities of the staff are different.

The staff of the central bank’s head office are civil servants, who are recruited through the national examination, have an administrative establishment, and pay basic pension insurance and occupational annuities for government agencies and institutions.

The staff of commercial banks are enterprise employees and pay the basic pension insurance for enterprise employees. Whether to pay enterprise annuity depends on the specific bank. In addition, even large financial central enterprises such as Industry, Agriculture, China and Construction do not have any official staff establishment.

3. Daily work is different.

The central bank is a regulator, mainly formulating policies, inspecting policy implementation, etc., and generally does not deal with ordinary people.

Commercial banks are regulated entities. They mainly operate legally under the supervision of the central bank, the China Banking and Insurance Regulatory Commission and other ministries and commissions, and they need to always deal with the people.

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