The Formation and Development of “Unified” Financial System

With the establishment of the highly centralized planned economic management system, China also established a financial management system that was adapted to this system. The People’s Bank of China was practically the only financial institution at that time, with commercial credit concentrated in the national bank. The People’s Bank of China undertook both commercial banking operations such as deposit-taking and loan granting, as well as performing the central banking functions of regulating currency circulation and credit allocation. During this process, the functions of finance became increasingly simplified, focusing on core tasks such as cash management, settlement, and treasury management.