Nanjing National Government Central Bank Of Study (1928-1937)

Central bank is the highest-ranking administratiive institution of currency and finance in a country. It is the core of the finanical system, holding the dominant position in the financial system in many countries.China developed its own central bank in the modern era with the development of banking industry and the input of advanced foreign theories on banking, especially the ideas about central cank. The Bank of Ministry of Households (Hu Bu Bank) and the Great Qing Bank (Da Qing Bank) in Qing period, as well as Bank of China and Bank of Communications during the North Ocean Period were all central banks to some extent for some of them were labeled as central bank and some others functioned as central bank. However, none of them was well-found central bank because the functions were not fully developed. After the establishment of Nanjing National Government (NNG), the Central Bank was formally created in Shanghai in 1928 with the purpose of reforming currency system, modifying finance and supporting taxation. The Central Bank of NNG was the most long-lasting and influential central bank in Modern Chinese history, existing with Kuomintang's control in Mainland China. It played a crucial part in various important events such as currency, finance, taxation and even factional struggle.Central Bank developed rapidly from 1928 to 1937 when the Anti-Japanese war broke out. Its business departments became more complicated. More and more branches were established. Its capacity and standing in the financial market increased dramatically. It also got some progress in developing its main functions to some degree during this time. As a bank of the government, Central Bank served the government by manageing the national treasury along with the national debts. It fared very well in this respect. As a bank of issuing, Central Bank played an important role in reforming currency system. It worked well in this issue and layed a foundation for unified issuing of currency. However, Central Bank failed to achieve the goal of monopolying the power of issuing currency, even though this should be the most important function of a central bank which is the "banker's bank". Central Bank performed poorly in this regard. The implementation of the reform of currency in 1935 strengthened the power of Central Bank and propelled the development of its functions. A very good opportunity was there while the NNG planed to change the Central Bank into the Central Reserve Bank in order that it could become a real "banker's bank". Unfortunately, all these potential processes were interrupted by the Japanese invasion.