Bank of China
Bank of China is one of the big four state-owned commercial banks of the People's Republic of China – the other three are Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China. Bank of China was founded in 1912 to replace the Government Bank of Imperial China, and is the oldest bank in China. From its establishment until 1942, it issued banknotes on behalf of the Government of the Republic of China along with the "Big Four" banks of the period: the Central Bank of China, Farmers Bank of China and Bank of Communications. Although it initially functioned as the Chinese central bank, in 1928 the Central Bank of China replaced it in that role. Subsequently, BOC became a purely commercial bank.
Region's central banks to seek ties
The Hong Kong Monetary Authority (HKMA) is to meet 10 other Asia-Pacific central banks in Shanghai in July to discuss co-operation among central banks in Asia.
An executive meeting of East Asia and Pacific Central Banks, which comprises 11 central banks from Korea, Singapore, Japan, China, Malaysia, Indonesia, New Zealand, Australia, Philippines, Thailand and the HKMA, will join the governors' meeting to be held by the People's Bank of China on July 25 in Shanghai.
HKMA chief executive Joseph Yam Chi-kwong said the meeting would focus on three issues: co-operation among Asian central banks on the management of exchange fund reserves to fight against speculation in local currencies, co-operation in the area of banking supervision and the development of Asia's financial infrastructure.
He said three working groups were studying the issues and would present reports at the meeting.
He said the most important issue to be discussed would be the building up of financial infrastructure in Asia, which includes the linkage between payment systems, the setting up of an Asian BIS (a formal alliance of Asian central banks) and an Asian clearing house.
'The linkage of payment systems will help reduce settlement risk,' he said.
'The Asian clearing house will enable debt securities to be cleared during the Asian time zone and the Asian BIS will help central banks have closer co-operation.
'The build-up of the financial infrastructure will help boost the confidence of foreign investors to invest in the Asian region,' he said.
For supervision of banking, he said one important area would be regulation of Internet banking systems and other new technological developments in the banking field.
Mr Yam said the HKMA was in talks with the Federal Reserve Bank of New York about linking Hong Kong's payment system with the United States.
'The United States has already linked up its payment system with other markets, why not Hong Kong?' he said.
He said such a link would require rule changes which would need the approval of the Federal Open Market Committee.
Meanwhile, he said the HKMA wanted to link its payment system with China and was discussing the issue with the People's Bank of China.
Since China has not established a Real Time Gross Settlement System, the link would not be implemented in the near future.
THE AIMS Link payment systems Establish clearing house Create formal Asian alliance Supervise region's banking