The reform of china’s financial system aims at establishing modern financial system for the sound financial order, a system that agrees with chinese type socialist market economy. Efforts will be made on the reform of the management system of people’s bank of china and turn state-owned commercial banks and people’s insurance company of china into fullfleged commercial entities in a planned and step by step manner, develop urban commercial banks and other local financial institutions and establish financial system composed of various and multi-level financial institutions. Management systems will be established in accordance with the basic attribute of various financial enterprises and all financial institution should operate independently according to the law. No institution or individual is allowed to interfere with the mormal management of the financial institutions. Financial institution should be accountable for their own risks, further improve the financial legal system, rectify and standardize financial order in accordance with law and strengthen the construction of internal control systems. It is also imperative to establish a financial supervision system under the conditions of market economy and supervisary board will be set up in all international financial institutions.

In the effort to establish a morden financial system, an important task is to create conditions for excersing management over the banks’liability rate on assets and to ensure the capability of preventing financial risks in accordance with the principles set by international clearing banks. These reform measures are being actualized in a step by step manner. The goal for the financial reform is with several years’ efforts, the management level of state-owned commercial banks will be raised to that of fairly advanced commercial banks in the world. With regard to the central bank’s restructuring, a number of across provincial, across autonomous regional and across municipal first level branch baks will be establised in the next few years. and county banks will be capped principly and their functions will be shifted. This reform will exert influence on china’s finacial sectors as long as twenty or even thirty years.