November 18, 1998 (September 30) Tiger years, China's first cross Administrative Region of the People's Bank of China branch in Shanghai listing.

1998 11 18, China's first cross Administrative Region of the People's Bank of China Shanghai Branch was formally established.
the implementation of the reform of the management system of the People's Bank of China, the revocation of the provincial branches of the establishment of provinces, autonomous regions, municipalities directly under the Central Branch, is a strategic decision of the CPC Central Committee and the State Council to deepen financial reform. It is reported that after the establishment of the Shanghai branch of the People's Bank, the remaining eight inter-provincial branches will be formally established on December 20, 1998. Dai Xianglong, governor of the People's Bank of China said in the evaluation of the role of the reform, it is conducive to enhancing the independence of the Central Bank supervision of financial institutions, which strengthen the monetary policy authority.
20 years of reform and opening up, China's financial sector has made unprecedented development. According to statistics, by the end of October 1998, the balance of deposits of financial institutions in China reached 9.3 trillion yuan loans reached 8.3 trillion yuan, an increase of 82 times and 45 times, respectively, compared with 1978. However, it is worth noting that, while the rapid expansion of financial assets, the ratio of non-performing loans of commercial banks in China are also on the rise. According to a survey shows that people line in 1997, China's financial system are difficult to restitution of the proportion of non-performing assets has reached 6% -7%, poor asset quality of the bank's credit, in this case, there is an obvious financial risks. Of course, the banks bad debts, bad debts, there are many reasons. However, one fundamental problem is that the last ten years, some local governments intervene in the bank's long-term operating activities, resulting in a marked deterioration in the quality of bank assets. Nowadays, commercial banks, and often will hear one called "point loan noun meaning is specified by the Chief Executive of the loan, often as long as led by a batch a note, bank loans obeyed, and the very less concerned about the creditworthiness of customers, sometimes knowing that companies can not repay the loan, bank loans, in this case, a large number of loans become non-performing assets. In some places, and some local leaders and even support banks to engage in interest rate war, illegal operation. 1992 to 1993, in some regions of China vigorously hot real estate, resulting in a huge amount of bank funds precipitation also administrative intervention in the financial results.
in accordance with the relevant legal, commercial banks should operate independently, the People's Bank has the right to regulate the business of commercial banks. However, the original People's Bank to establish a branch administrative divisions, so that the person in charge of the People's Bank branch should not only be governed by the parent bodies, but also by the local constraints, this way, when a problem occurs, such as encountered administrative intervention, the People's Bank, it is difficult to fulfill the responsibilities of the central bank should be. (Lssdjt.cn)
from foreign government intervention in the financial consequences are very serious. After analysis of the reasons for the financial crisis in Southeast Asia, the IMF and the World Bank that: in the countries and regions in Southeast Asia, the prevalence of inadequate banking supervision, the government directed lending, political pressure loans, these are the Southeast Asia regional bank's bad debt is an important factor of up to $ 660 billion, which is the root cause of the crisis outbreak. Bank: the economic recovery in Southeast Asia, a very important prerequisite for an overall improvement in its financial regulatory system.
It is understood that the reform of the management system of the Central Bank brewing for a long time. Back in November 1993, the Third Plenary Session of the 14th CPC put forward the "branch of the People's Bank of China head office dispatched, should actively create conditions for various administrative settings, this vision is to be written at the same time" the decision on the reform of the financial system ". Issued in 1995, "the People's Bank of China Law clearly stipulates:" the People's Bank of China, under the leadership of the State Council shall be independent of the implementation of monetary policy, to fulfill their responsibilities to conduct business from local government, at all levels of government departments, social organizations and individuals interference. "In the same year, the People's Bank launched a subordinate branches cadre exchange system. The People's Bank Shanghai Branch was established, the signs of this reform has been officially launched.