Economist Yi Gang Appointed as Head of China's Central Bank

Yi Gang
Yi Gang (photo: Facebook/ Screenshot)
By Faith MagbanuaMarch 19th, 2018

US-educated economist Yi Gang has been named as the next governor of China's central bank, replacing Zhou Xiaochuan. Holding a degree in economics from Beijing University, together with a master's degree and PhD in economics from the University of Illinois, Yi joined the People's Bank of China (PBOC) 20 years ago and has been its deputy governor since 2008.

His appointment shows the continuity that Beijing manifests as it tries to rein in the country's growing debt and limit the country's risky financial practices.

The announcement of his appointment was made on the second-last day of the annual sitting of the National People's Congress this weekend.

Yi will take over a central bank tasked with the ongoing reform of China's financial landscape, including encouraging foreign investment into the financial markets, and monetary policy reform.

Last week, as part of the numerous changes to China's central government structure, the NPC stated that China's central bank would have increased control over making new laws and regulations for the banking and insurance sectors.

It was also publicized that a newly formed banking and insurance super regulator, formed out of a merger between the Banking Regulatory Commission and the China Insurance Regulatory Commission, would oversee all of China's banking and insurance sector - and would effectively report into the PBOC.

On the other hand, alterations to the banking and finance regulatory systems will see the PBOC become one of the most powerful bodies in the country.

However, unlike the United States and other large democratic countries, China's central bank does not operate independently with the government. As a result, Yi will ultimately report directly to President Xi Jinping.

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