zhou xiaochuan : some considerations in the study of monetary policy transmission speech by mr zhou xiaochuan, governor of the people ’ s bank of china, beijing, 13 april 2004. * * * distinguished guests, ladies and gentlemen, this high - level seminar on china ’ s monetary policy transmission mechanism jointly held by the people ’ s bank of china and the international monetary fund is an important and meaningful cooperation between the pbc and the imf. first of all, on behalf of the people ’ s bank of china, i would like to express the warmest congratulations on the opening of this seminar and the most sincere welcome and appreciation to foreign experts headed by mr. lipschitz, director of the imf institute, and the chinese experts and scholars present at this seminar. during the meeting, mr. marvin goodfriend discussed the analysis framework for monetary policy transmission mechanism ; mr. herve ferhani presented on the impact of banking soundness and competitiveness on monetary policy transmission mechanism ; mr. lajos bokros, director of the world bank financial services advisor / europe and central asia office and prof. bennett t. mccallum from carnegie mellon university spoke on the experience of post - transition and industrial countries respectively ; and this afternoon, prof. noriyuki takayama from hitotsubashi university will talk about the impact of ageing and social securities system on monetary policy transmission from the japanese experience. their research and presentations are very helpful for us to learn the useful country experience and further improve the monetary policy transmission and adjustment mechanism. with respect to china ’ s monetary policy transmission mechanism, i would like to add the following points : i. the study of monetary policy transmission should be attentive to the micro foundation, and to the sensitivity, speed and effects of banks ’ and other financial institutions ’ response to monetary policy. only with a sound micro foundation, could monetary policy transmission mechanism be improved. in recent years, in order to establish a micro foundation sensitive to price signals, much importance has been attached to strengthening corporate governance and the role of shareholder value. whether economic agencies at the micro level are profit - maximizing has direct impact on the monetary policy transmission and its effectiveness. if micro economic agencies are not profit maximizing, it is no surprise that price instruments of monetary policy hardly works. with the deepening of the economic reform, it can be observed that financial institutions are gradually moving towards profit maximization, though still far from what would have been in

xiang junbo : medium - term strategy to strengthen financial stability and promote financial development speech by mr xiang junbo, deputy governor of the peoplea€™s bank of china, at the seventh meeting of iif asian ceo summit, hong kong, 26 october 2005. * * * ladies and gentlemen, it is my great pleasure to address the seventh meeting of iif's asian ceo summit. it provides us with a good opportunity to exchange views about important issues relevant to asia and the whole world. today, i would like to introduce to you the people's bank of china's medium - term strategy in strengthening financial stability and in promoting financial development. finance is the core of modern economy, and maintaining financial stability is the foundation for sound and stable economic development and long - term social security. financial stability is an important agenda for all governments in the world. as china's economy and financial sector grow steadily, a stable financial system will hold great significance not only in china, but also in asia and the world. over the past more than two decades, china's opening - up and reforms and socialist market economic development have achieved remarkable accomplishments and realized economic, political and social stability, creating favorable macro environment for financial stability. chinese government paid high attention to financial stability. in 2003, chinese government restructured financial management regime by establishing china banking regulatory commission to supervise banking industry. at the same time, the law of the people's republic of china on the people's bank of china was revised to confirm and strengthen the pbc's function in prevention and mitigation of financial risks and in safeguarding financial stability. the pbc and other government agencies carry out national guidelines and policies by close collaboration and collective efforts to proactively prevent and mitigate financial risks, promote financial reform, safeguard financial stability and advance financial development. i. financial stability situation in china since the opening - up and reform of the chinese economy, china has established rather complete financial institutional system. as of the end 2004, china has 4 wholly state - owned commercial banks, 3 policy banks, 12 share - holding commercial banks, 112 city commercial banks, 681 city credit cooperatives, 32, 854 rural credit cooperatives, 8 rural cooperative banks, 7 rural commercial banks, 211 foreign bank branches, 220 foreign bank representative offices, 4 financial asset management companies, 59 trust and investment companies, 74 finance companies, 12 financial leasing companies, 3 auto financing companies and a large number of postal savings