On November 15, 1998 (the 27th day of the ninth lunar month), the management system of the People's Bank of China was reformed.

On November 15, 1998, the Party Central Committee and the State Council made a decision to reform the management system of the People's Bank of China, abolish provincial branches and establish nine branches across provinces (autonomous regions and municipalities directly under the Central Government).

In order to implement the decisions of the Party Central Committee and the State Council, the People's Bank of China held a national branch presidents meeting in Beijing. Wen Jiabao, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, attended the meeting and delivered an important speech. Wen Jiabao said that in accordance with the deployment of the Party Central Committee and the State Council, the reform of the management system of the People's Bank of China has begun to be fully launched. The abolition of provincial branches of the People's Bank of China and the establishment of branches across administrative regions is an important decision made by the Party Central Committee and the State Council. It is a major reform of my country's financial system and has far-reaching historical significance for the establishment of a modern financial system.

Wen Jiabao said that over the past 20 years of reform and opening up, our country's financial industry has developed steadily, opening up to the outside world has gradually expanded, and the reform of the financial system has gradually deepened. By the end of October this year, the balance of RMB deposits reached 9.30 trillion yuan, the balance of loans 8.30 trillion yuan, and the national foreign exchange reserves reached 143.70 billion US dollars, an increase of 82 times, 45 times and 845 times respectively compared with 1978. The balance of personal savings deposits is 5.20 trillion yuan, an increase of 249 times over 1978. At present, a financial system with complementary functions has basically formed. The new financial system has played a positive role in curbing inflation and promoting economic development. At the same time, we must be soberly aware that there are also risks in the development of our country's financial industry. The Party Central Committee and the State Council attach great importance to preventing and defusing financial risks. In November last year, the Central Committee held a national financial work conference and formulated a series of measures to deepen financial reform, rectify financial order, and prevent and defuse financial risks. At present, these measures are being gradually implemented and have achieved results.

Wen Jiabao said that the central bank is the core of the financial system, and the reform of the central bank's management system is related to the overall situation of the reform of the entire economic system and macro-control. With the deepening of financial system reform and the development of financial marekt, the current management system can no longer meet the needs of the central bank to perform its duties according to law under the new situation, and it is not compatible with the business development of the Financial Institution Group. Reform is imperative. This reform of the management system of the People's Bank of China is an inevitable requirement for the establishment of a socialist market economic system, and it is also an urgent need to strengthen financial supervision at present. The reform plan of the management system of the People's Bank of China was determined by the Party Central Committee and the State Council after long-term deliberation, repeated research The abolition of provincial branches of the People's Bank of China and the establishment of nine inter-provincial (autonomous region and municipal) branches are conducive to enhancing the authority of the central bank to implement monetary policy; it is conducive to enhancing the independence of the central bank's financial supervision; it is conducive to enhancing the unity and effectiveness of financial supervision. Unified dispatch of supervision forces across provinces, get rid of interference from all aspects, seriously investigate and punish illegal Financial Institution Groups and responsible persons, and improve the efficiency of financial supervision. This reform marks a new stage in China's financial reform and an important step forward.

Wen Jiabao said that this reform of the People's Bank of China in setting up branches across provinces, autonomous regions and municipalities involves various aspects of relationships and the work task is very arduous. Therefore, we must strengthen leadership, carefully organize and make careful arrangements. It is necessary to unify all aspects of thinking into the central government's decision-making. Unified understanding and unified actions to ensure that system reform and financial supervision work are consistent. He put forward three requirements for reforming the management system of the People's Bank of China:

The first is to promptly equip the leadership team of the branch. The selection of leadership teams for branches across provinces, autonomous regions and municipalities is an important guarantee for the smooth progress of this reform. The key is to adhere to the correct cadre line, insist on appointing people on merit, insist on having both ability and political integrity, adhere to the "four modernizations" of cadres, and truly resolutely implement the party's basic line, have a high degree of revolutionary professionalism and a strong sense of political responsibility, are familiar with financial business, and are in charge of financial reform and development. Cadres with outstanding performance, integrity, and trust by the masses are selected to leadership positions. Leading cadres must be able to move up and down, and be able to move in and out. Leading cadres at all levels of the People's Bank of China must correctly treat power, status and retention, consciously obey organizational arrangements, and better work for the Party and the people in new positions.

The second is to conscientiously perform the functions of the central bank. In this reform, we must implement the principles of concentrating macro-control power in the head office, appropriately concentrating supervision power, and facing financial services to the grassroots. It is necessary to strengthen supervision in services, provide good services in supervision, and improve the level of supervision and services in practice. In the reform process, work discipline and financial discipline must be strictly enforced. Business work cannot be disconnected and regulatory vacuum cannot occur. The work of cross-administrative branches must be completed as soon as possible. It is necessary to make good connection with the original provincial branch. After the system reform, we must promptly establish and improve a new management system to adapt to new work needs.

The third is to proactively seek support and cooperation from all parties to ensure the smooth progress of the reform. The establishment of cross-administrative regional branches of the People's Bank of China takes into account factors such as the economic and financial relevance of each region, the development degree of financial markets in each region, the volume of financial business in each region, and geographical and transportation conditions. In reforming the management system and performing its duties in the future, the People's Bank of China should take the initiative to win the care, support and cooperation of local party committees and governments. Local party committees and governments at all levels should also care about, support and help the People's Bank of China in its reform work and ensure that the Central Bank performs its duties in accordance with the law. It is necessary to assist the People's Bank of China in doing a good job in the ideological work of cadres and help solve practical difficulties; support the People's Bank of China in supervising in accordance with the law and assist the People's Bank in investigating and handling cases of financial violations and laws; put forward criticisms and suggestions on the work of the People's Bank, but do not interfere with the specific business of the People's Bank; It is necessary to manage urban banks and other small financial institutions in the region, rectify financial order, and prevent financial risks.

Wen Jiabao finally asked leaders at all levels of the People's Bank of China to conscientiously reform the management system of the People's Bank of China under the leadership of the Party Central Committee with Comrade Jiang Zemin at the core and in accordance with the deployment of the Party Central Committee and the State Council.

During the meeting, Dai Xianglong, governor of the People's Bank of China, made specific arrangements for the reform of the central bank's management system, and required the cadres and employees of the People's Bank of China to uniformly arrange all tasks in the spirit of being highly responsible to the party, the people, and the central bank's undertakings. Promote the reform of the management system of the People's Bank of China on schedule.

According to the introduction, the nine newly established inter-provincial branches of the People's Bank of China are: Tianjin Branch (governing Tianjin, Hebei, Shanxi, Inner Mongolia); Shenyang Branch (governing Liaoning, Jilin, Heilongjiang); Shanghai Branch (governing Shanghai, Zhejiang, Fujian); Nanjing Branch (governing Jiangsu, Anhui); Jinan Branch (governing Shandong, Henan); Wuhan Branch (governing Jiangxi, Hubei, Hunan); Guangzhou Branch (governing Guangdong, Guangxi, Hainan); Chengdu Branch (governing Sichuan, Guizhou, Yunnan, Xizang); Xi'an Branch (governing Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang). The Beijing Branch and Chongqing Branch will be abolished, and the business management department of the head office will perform the duties of the local central bank.