On The Positioning Of The People's Bank County Branch Functions In The Development Of County Economy

Since the separation of banking supervision function in 2003, the function of constitution and implementation of monetary policy has become the chief function of the People's Bank of China. PBC has more than 1800 county-level subbranches over China, accounting for more than 60% of the total staff of the PBC. From the point of apparent view, it seems that there's difference between the fact on a great many people's conducting micro management and law provision on macro control. In such situation, here comes a question. Is the existence of county-level subbranches of the PBC a necessity? If it is, what is the function orientation of county-level subbranches in county economy? That is just the question this thesis will answer.This question has triggered hot dispute domestically. There are mainly two opposite viewpoints. One believes that the existence of county-level subbranches is absolutely not necessary, the so-called "the view of no important function". And the other one believes that the existence of county-level subbranches is necessary, the so-called "the view of single function" and "the view of multi-function".The author considers that the function orientation of county-level subbranches is decided not only by law and theory but also by objective economy and finance basis. It is the specific characteristic of Chinese financial system and county economy development that decides the objective necessity and function orientation of county-level subbranches.This thesis is based on the retrospect of the reform of Chinese financial system and the historical evolvement of the PBC, pay attention to the functional changes of the county-level subbranches, and compares with the subbranches situation of central bank system in UK and US. Chinese government always attaches great importance to the experiences on central bank system reform of developed countries, such as UK and US, and follows the examples actively. For example, Chinese government conducted the reform of "regional central bank" system. But practice shows that this arrangement of system is proved out of operation in China and the specific characteristic of Chinese financial reform is the reason why county-level subbranches should exist. Thus, the author made use of Institutional Change Theory to explain the institutional change pattern difference in finance between China and developed countries. On one hand, the difference leads to the defect and deficiency of Chinese county economy that needs county-level subbranches' existence to give effective supplement; on the other hand, county-level subbranches have fierce path dependence domino offect because of the benefit system during long institutional change. More general and clearer cognition and understanding on the necessity of county-level subbranches' existence can be formed by the discussion and analysis above.On the basis of demonstrating the necessity of the county-level subbranches' existence, the thesis further analyzes the function orientation of county-level subbranches in county economy development. By widely collecting historical data about county economy and country finance, the conclusion is that China is a developing country in economy transfer, county economy is very important in national economy and is of special reality in developing level and county finance supporting ability, so the function orientation of county-level subbranches of the PBC is explained in realizing optimized distribution to county finance resources and developing county economy.To make the argumentation above more persuasive, the author empirically studies county-level subbranches of the PBC Wenzhou Subbranch.The thesis is based on existing research, using Traditional Analysis Method, Course Analysis Method and History Analysis Method. County-level subbranches of the PBC have the phenomenon of path dependence by the way of discussion and analysis on the policy change during Chinese financial system reform path and the development of PBC. Taking dynamic time factor into consideration, the function orientation of county-level subbranches of the PBC is different in different historical phase and macro economy environment, so we'd better analyze the function orientation of county-level subbranches with the method of history and development vision and Chinese reality instead of simply copying foreign experience and theory frame.