Research On The Chinese Treasury Cash Management

In the course of rebuilding the management system of public finance, Treasury cash balances at the central bank increase dramatically every year with the development of centralized payment system reform. It is necessary to reform the Treasury cash management to keep Treasury cash balances at the central bank from expanding, in order to make most use of the idle Treasury cash. With studying the Treasury cash management mechanism of America, taking measures to build Treasury accounts in the commercial banks in accompany with Treasury accounts in the Central Bank to maintain a stable working balance in China, whether is reasonable or not is the main object of this article.This article is first making a brief of the background and significance of the study and introducing the previous relevant research. Then faced with the problem of the expanding of Treasury cash balances in the Central Bank account, this article is exploring the reasons and taking a look at the implemented measures. And in next section of the article is the deep research on the mechanism of the Treasury Tax and Loan account, including the history of the Treasury Tax and Loan account, the coordination mechanism with the Treasury general account, the new developments and a necessary analysis of the main characteristics of the American Treasury cash management. Whether is reasonable or not to make commercial banks component of Treasury’s fiscal management system in China is discussed in the following part of this article, and based on analysis of the public finance conditions of China, potential problems are paid necessary attention. At last, relative policy suggestions for the reform of Treasury cash management are proposed, in order to find a proper path to build the Treasury accounts in the commercial banks in China, in coordination with the Treasury accounts in the Central Bank.Normative economic research techniques are widely used in this article. This article focuses on essential contents analysis, studies American Treasury cash management experience and combines China’s practice to make suggestions.