There are three main differences between the Bank of China and the People's Bank of China:

1. Different ownership: Bank of China is a commercial bank and the People's Bank of China is the central bank.

2. Different service directions: Bank of China’s service direction is business and market, while the People’s Bank of China’s service direction is social economy and people’s livelihood.

3. Different functions: Bank of China is a state-owned commercial bank, and its role is naturally reflected in the word "business". Its business scope involves commercial banking, investment banking, insurance, and aviation leasing; it owns Bank of China Hong Kong, Bank of China International and BOC Insurance and other holding financial institutions, providing financial services to individual and corporate customers around the world.

The People's Bank of China, under the leadership of the State Council, independently formulates and implements monetary policies, prevents and resolves financial risks, maintains financial market stability, and plays its maximum role without interference from local governments, social groups and individuals.

4. The rights to issue currency are different: the Bank of China cannot issue currency, but the People's Bank of China can issue currency.

Extended information:

1. The People's Bank of China is the central bank of our country. It is a national agency that formulates and implements monetary policy under the leadership of the State Council and is an integral part of our government. Therefore, the nature of the central bank is a government agency.

The Central Bank is known as the "bank of banks" and is the dominant force in China's banking industry and financial institutions. It has an extremely important function. ?

(1) Formulating and implementing monetary policy in accordance with the law is an important tool for national macro-control. ?

(2) Issue RMB and manage the circulation of RMB. The right to issue RMB in China belongs to the state, and the state authorizes the People's Bank of China to issue RMB uniformly. The Head Office of the People's Bank of China is the only financial institution that issues RMB. The People's Bank of China is also responsible for currency deposits and withdrawals. ?

(3) Manage the treasury. ① Since the branches of the People's Bank of China are spread across the country, the timely handover of fiscal revenue and the timely disbursement of fiscal expenditures can be guaranteed by the banks that manage the national treasury. (2) The treasury is actually the authority in charge of national fiscal revenue and expenditure. Our treasury is managed by the People's Bank of China in accordance with the law. ?

(4) The function of holding, managing and operating national foreign exchange reserves and gold reserves. ?

Second, the functions of commercial banks in modern economic activities mainly include six major functions: credit intermediary, payment intermediary, credit creation, financial services, economic regulation and risk management.

1. Credit intermediary Credit intermediary is the most basic function of a commercial bank and best reflects the characteristics of its business activities.

It concentrates various idle businesses in the society into banks through the bank's liability business, and then invests them in various departments in need of funds through the asset business.

Commercial banks act as intermediaries between those with idle funds and those with insufficient funds to achieve financing. Giving full play to the role of credit intermediaries can convert idle money into capital, make full use of idle money, and meet the society's demand for long-term funds.

2. Payment intermediary

Payment intermediary refers to the activities that commercial banks use current deposit accounts to handle various currency settlements, currency receipts and payments, currency exchanges and deposit transfers for customers.

Payment intermediary is the traditional function of commercial banks. With this function, commercial banks become fund custodians, cashiers and payment agents for industrial and commercial enterprises, governments and households.

3. Credit generation

Based on the credit intermediary and payment intermediary, commercial banks have the credit creation function.

Credit creation means that commercial banks take advantage of their favorable conditions to absorb demand deposits and obtain more deposits by issuing loans or engaging in investment business, thereby expanding the social money supply.

Commercial banks create and shrink demand deposits through their own credit activities, and demand deposits are the main part of the money supply. Therefore, commercial banks can circulate debt as currency, thus having the function of credit creation.

4. Financial services

Financial services are commercial banks taking advantage of their special position in national economic activities to obtain a large amount of information in the process of providing credit intermediary and payment intermediary services, and then use Computer network and other technical means and tools, and other services provided to customers.

For example, it provides consulting services to enterprises and provides decision support services, etc.

5. Adjusting the economy

Adjusting the economy means that commercial banks adjust the shortage of funds in various fields of society through their credit intermediary activities, and at the same time, under the guidance of the central bank’s monetary policy and other countries’ macro policies Next, adjust the economic structure, consumption and investment ratio and industrial structure.

In addition, commercial banks can adjust their international balance of payments through their financing activities in international markets.

6. Risk management

By borrowing high-risk funds and issuing low-risk indirect securities to depositors, commercial banks actually assume the risk arbitrage function of the financial market.

When banks use borrowed funds to issue loans to other fund demanders, they actually assume the function of managing credit risks and market risks.

It is through the management of these risks that commercial banks obtain deposit and loan interest rate differentials and form their source of profits.