Is ZTE Bank a central bank

Mondo Finance Updated on 2024-01-31

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Is ZTE Bank a central bankThe answer is:It's not

Many people may wonder about the nature of ZTE as a central bank, or at least a subordinate agency of the central bank. This misunderstanding may stem from the name of ZTE and its importance in China's financial markets.

But in fact, is Zhongxing Bank a central bank?The answer is:It's not

Let's explain why in detail.

Central Bank, full nameBanksIt is a financial institution of the first class in a country, responsible for formulating and implementing monetary policy, maintaining financial stability, managing foreign exchange reserves, issuing currency, and supervising the financial market. In China, the official name of the central bank is:People's Bank of China, abbreviated as:People's Bank of ChinaorpbocFounded in 1948 and headquartered in Beijing, it is the highest financial management authority in China

Zhongxing Bank, full nameZTE Bank shares***, abbreviated as:Zhongxing Bankorcmb, is a familyCommercial BanksFounded in 1997 and headquartered in Beijing, it is one of the largest joint-stock banks in China. The main businesses of ZTE Bank include:Deposits, loans, settlements, foreign exchange, wealth management, insurance, credit cardsThe service objects cover individuals, enterprises, and other customers. Listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, ZTE Bank is one of China's most internationally influential banks.

The relationship between ZTE Bank and the central bank is:Cooperation & Regulation。As a commercial bank, ZTE Bank needs to comply with the central bank's monetary policy and financial regulations, such as the reserve requirement ratio, interest rate level, foreign exchange control, etc. At the same time, ZTE can also obtain financial support and preferential policies from the central bank, such as central bank bills, rediscounting, medium-term lending facilities, etc. In short, ZTE Bank is a partner of the central bank and is also the object of supervision by the central bank, but it is not a part of the central bank.

From the above analysis, we can conclude that is ZTE Bank a central bankThe answer is:It's not。ZTE Bank is a commercial bank that has a cooperative and regulatory relationship with the central bank, but is not under the direct control of the central bank.

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