Bank of China definition

Bank of China

The Bank of China is one of China's four largest state-owned commercial banks. It is a subsidiary of the People’s Bank of China. However, it maintains close relations in management, administration, and cooperation in several areas with the subsidiary.

PBOC explained

Located in Beijing, The People's Bank of China (PBOC) is the People's Republic of China's central bank. It was established on December 1, 1948 as the body responsible for monetary and fiscal policy, and financial regulation in Mainland China.

Until 1978, the PBOC oversaw business transactions and credit. The State Council then split off commercial banking functions of the PBOC into four independent state-owned banks, including the Bank of China (BOC).

In September 1983, the State Council decreed the PBOC would function as a central bank.The PBOC has the most extensive financial asset holdings of any central bank globally. The PBOC’s foreign exchange reserves have risen from an estimated $400 billion in 2004 to an approximate $3.7 trillion in 2018.

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