Independence Of The Legal Issues In People’s Bank Of China

The Central Bank as the most important authority in the economic society, itsown independence closely affects the running of the country’s national economy. Withthe development of economic globalization, governments recognize the independenceof the central bank to improve the role to enhance the level of a country’s financialdevelopment of financial markets and maintain financial order, regard monetarypolicy as an important means of indirect control of macroeconomic.China’s central bank need to fulfill the objectives of monetary policy at the sametime, charged with curbing inflation, maintain economic growth and other importanteconomic functions, fleshed out its own independence requirements. However,China’s central bank, known as the "issuing bank","bank of banks","thegovernment’s banker", has special attributes of the economic functions andoverlapping administrative functions. The independence of China’s central bankinevitably means’relative’. It is based on this particularity of China’s nationalconditions, how to effectively improve the independence of China’s central bank isparticularly critical and urgent, under the premise of relatively independent of theBank of China. This understanding also has important practical significance for thereform of The Central Bank’s operation mode to establish the regulation system ofmonetary policy.Review the course of development of the People’s Bank of China, the overallshowing a trend of gradually strengthen independence. Although China’s current legalsystem and the relevant provisions are not comprehensive and mature enough,People’s Bank of China as society managers to intervention, to guide the healthydevelopment of the nation’s banking and financial industry, can be said to effectivelyplay its due role of the central bank. Admittedly, there is a gap between the effect ofthe actual operation of the Central Bank of China and the macro objectives. Trying tofind the real reason affecting the independence of central bank and putting forwardconcrete proposals to strengthen the independence of China’s central bank havebecome a top priority, which also have an important meaning for us to fully aware ofthe independence of the central bank and to play its role in macroeconomic andfinancial sector, to better serve the financial sector, to protect the security andstability of the financial sector and to provide a good monetary environment for the healthy development of the economy.