Two, commercial banks Commercial banks are to absorb public deposits and loans as the main content of the bank, it is the main difference with other financial institutions can absorb demand deposits and non-cash settlement and cash cashier business, so it is called deposit money bank. Now, its business has developed in a comprehensive direction.
Three, specialized banks Specialized banks have a specific scope of business, providing specialized financial services banks.
Four, insurance companies Insurance companies can be used steadily for investment and payment of goods because of the balance of premiums, so it is the most important non-bank financial institutions in modern countries. Among them, the more important are: life insurance companies; property and casualty insurance companies
Fifth, the retirement pension fund Retirement pension funds are a kind of financial institutions to participate in the pension plan in the form of annuities to provide retirement income, due to the employer and the high staff of the monthly contributions far more than the expenditure of the retirees, a large number of its excess funds are used in stable investment.
Sixth, other financial institutions Credit unions, finance companies (finance companies), investment trust companies.
Five constituent elements of the financial system: the modern financial system has five constituent elements, one is regulated by the monetary system of monetary circulation; second is the financial institutions, which includes banks and non-bank financial institutions, or can be attributed to the operation of money or money capital business, but also classified as acting as a credit intermediary, the medium, and engaged in a variety of financial services organization; third is the financial market, which Most of them are capital market, money market, foreign exchange market, insurance market, derivative financial instruments market, etc., and the most important participants of these markets are financial institutions; fourth, financial instruments, written proof of credit relationship, contractual instruments of debt and creditor's rights and liabilities, etc., which are traded in financial institutions and financial markets, and are the carriers of financial activities; and fifth, systems and regulatory mechanisms, which exist in the market economic system on the basis of the market laws. On the basis of the law of the market, there are all the state's management of financial operation and policy regulation in the financial field. These five components are not mutually independent, juxtaposed subsystems divided according to a certain criterion. Currency circulation regulated by the monetary system is the constituent element covering the entire financial system, and is the premise on which the financial system exists; financial markets and financial institutions are the two major fields of financing operation, and are the two complementary parts constituting the body of the financial system; in other words, the financial system is constituted by the financial markets and financial intermediaries; as for financial instruments, there is no such thing as a financial market and financial intermediaries apart from financial instruments, and there is no such thing as a financial market and financial intermediaries apart from financial instruments. Financial instruments, there is no financial market and financial intermediaries without the existence of financial instruments; the state's management of financial operations and policy regulation in the financial sector, is determined by the specificity of the financial, financial products to a certain extent is a quasi-public **** products.
We can divide the contemporary global monetary and financial system into five differentiated and closely linked five major market system or price system, they constitute an interlocking, hierarchical pyramid type global price determination system.
The first level: the global final goods and services market system and price system. The second layer: the global strategic resources market (including oil, natural gas, iron ore and other commodities market) and other factors of production market system (including human capital and science and technology market) and price system. The third layer: the global enterprise equity market system (including the public stock market, private equity funds, venture capital, mergers and acquisitions, etc. constitute a huge global capital market system) and price system. The fourth layer: the global credit market system (including the unusually large trading volume of the treasury bond market, corporate bond market, local government bond market and the derivative financial instruments derived therefrom, etc.) and the price system. The fifth layer: currency issuance system, currency market system and currency price system (mainly the global base currency issuance market and issuance mechanism, transaction volume of the same huge foreign exchange market and exchange rate system arrangements, etc.). Fiscal policy is one of the important tools for the government to implement macro-control. Fiscal policy mainly through taxes, subsidies, deficits, national debt, income distribution and transfer payments and other means of regulating the economic operation, is the government to carry out anti-economic cycle regulation, ironing out the economic fluctuations of the important tools, but also the financial effective performance of the allocation of resources, the fair distribution and stabilization of the economy and other functions of the main means. In light of the new situation, we will strive to improve the relevance and flexibility of our policies. Compared with the response to the Asian financial crisis, the current China has a lot of more proactive and favorable conditions, strong national strength, sufficient foreign exchange reserves and strong financial resources so that the government has more room for manoeuvre in policy decision-making. From China's reform and opening up since the experience of all the big external shocks, each big external shocks have become China's full mobilization of all kinds of resources to promote the reform of the economic system, to cultivate new points of economic growth, so as to promote China's economy to a new level of major opportunities. This time, the focus of China's active fiscal policy is to further expand domestic demand, aiming to tap the potential of domestic demand to provide impetus for China's economic growth.
The first step is to increase investment and optimize the investment structure. The central government's increased investment will mainly be used for the construction of security housing projects and infrastructure construction in agriculture, education, health care, ecological environment, etc., to support post-disaster reconstruction. At the same time, it will speed up the construction of a number of major infrastructures under construction and new ones, so as to increase the momentum for economic development.
Secondly, we are pushing forward the tax reform and implementing tax cuts to promote business investment and consumer spending. China will fully implement the value-added tax (VAT) transition from January 1, 2009, to promote enterprise investment and expand domestic demand. The Ministry of Finance said that it will further study and implement fiscal and tax policies to expand consumption and increase residents' consumption demand. It will also adjust and improve the export tax rebate policy to encourage the development of foreign trade and promote the stable growth of foreign trade and export.
In addition, to protect and improve people's livelihoods in the active fiscal policy in a prominent position. In the expansion of domestic demand in the ten policies, people's livelihood project construction is placed in the first place, become the next financial increase in expenditure in the direction of the focus. The financial sector will increase the scale of financial subsidies and promote the raising of the income of urban and rural residents. The standard of various subsidies for farmers will be increased substantially, and the level of urban and rural low income insurance subsidies will be raised. They will also implement a proactive employment policy and increase transfers to the central and western regions in order to narrow the gap in income distribution between regions. At the same time, further adjusting and optimizing the structure of fiscal expenditure, focusing on increasing investment in livelihood areas such as the "three rural areas", education, health care, social security, and the construction of guaranteed housing projects.
The positive fiscal policy has also released a positive signal to promote the upgrading of industrial structure.
The relevant person in charge of the Ministry of Finance said that, for the current part of the industry facing China's overcapacity, the industrial structure needs to be upgraded, low-level construction is prone to rebound and so on, the positive fiscal policy will focus on the optimization of the economic structure and the upgrading of industrial structure. The next step will be the implementation of preferential fiscal and tax policies to promote independent innovation, the implementation of tax incentives to support the development of small and medium-sized enterprises, support the construction of a perfect guarantee system to help small and medium-sized enterprises to finance, and to promote small and medium-sized enterprises to promote scientific and technological progress and technological innovation. At the same time to support the construction of key energy saving and emission reduction projects, and support the development of the service industry.
The active fiscal policy has the following characteristics: First, "new ideas". The implementation of active fiscal policy based on the crisis, crisis resolution, focusing on seizing opportunities, create opportunities, better implement the scientific concept of development. The second is "clear guidance". It is to emphasize people's livelihood, to maintain growth, to promote consumption, to activate the market, to unify internal and external, and to benefit the long-term. Third, "strong". Fourth, "many tools". The budget, taxes, discounts, fee reductions, spending increases, investment, bonds, transfer payments and other fiscal policy tools combined together to use.
First, the introduction of the investment promotion initiatives have been tilted to the livelihood aspects of the characteristics. Although the investment drive is still the main means of expanding domestic demand, but this time more emphasis on people's livelihoods, at least five of the ten measures are closely related to people's livelihoods, and less developed regions or low-income people. For example, to speed up the construction of housing projects; accelerate the construction of rural infrastructure, increase poverty alleviation and development; accelerate the development of health care, culture and education; strengthen the construction of the ecological environment, accelerate the construction of urban sewage, garbage disposal facilities and water pollution prevention and control in key watersheds; accelerate the reconstruction of earthquake-stricken areas, etc..
Secondly, for the first time, raising the incomes of urban and rural residents and the reform of the tax system transformation were included in the initiatives to expand domestic demand. This time, the full implementation of value-added tax transformation reform in all regions and industries across the country, to encourage technological transformation of enterprises and reduce the burden on enterprises by about 120 billion yuan, which is a considerable progress. Efforts will also be stepped up in the future to stimulate consumer demand by lowering the income tax tax bill for wage earners, self-employed people and small and medium-sized enterprises, expanding the scope of consumption subsidies for urban and rural residents and actively promoting consumer credit.
Third, the measures introduced this time combine short-term and long-term goals. On the one hand, the promotion of economic growth and structural adjustment is closely integrated, put forward to accelerate independent innovation and structural adjustment, support the construction of high-tech industrialization and industrial technological progress, support the development of service industry initiatives, which is conducive to boosting current economic growth, but also conducive to enhancing the strength of economic development. On the other hand, the measures introduced will expand investment and stimulate consumption closely together, proposed to strengthen the construction of grass-roots medical and health service system, accelerate the transformation of rural junior high school buildings in the central and western regions, promote the construction of special education schools and township comprehensive cultural stations in the central and western regions; accelerate the construction of guaranteed housing projects, increase the support of low-cost housing construction, accelerate the renovation of shanty towns, the implementation of nomadic herdsmen resettlement project, expand the pilot project of rural dangerous housing reform, increase the support of low-cost housing construction, and implement the project of nomadic herdsmen settlement. Expand the pilot project of rural dilapidated housing reconstruction, accelerate the construction of rural infrastructure and other initiatives, these investments are conducive to both promoting current consumption, stimulate the economy, but also conducive to the overall realization of well-off, building a harmonious society.
Policy stage: active fiscal policy, is in the current China has a lack of demand, investment, exports and economic growth is weak, the impact of the Asian financial crisis has intensified and other special circumstances, within the limits allowed by the policy environment, the policy taken by a stage or a temporary moderate expansion of the policy. It can also be said that this is in the domestic economy has an urgent need, policy implementation and the realistic possibility of conditions, made a conditional policy choice. Here the so-called objective need, is to expand domestic demand in order to maintain moderate economic growth needs, is in the monetary policy due to the implementation, the operation of the access to local obstacles, its ability to stimulate demand and the effect of the conditions of the limitations of a policy choice must be made. The so-called policy environment allows, that is to say, despite the national fiscal balance of payment situation is more severe, but in the bank has more "deposit gap", there are rich funds, enterprises due to the strengthening of the constraint mechanism and other reasons and loan prudence, etc., the financial can be through the implementation of a moderate expansion of the national debt policy as the focus of the active fiscal policy, to achieve the expansion of demand, stimulate the economy. Once this policy environment changes, the choice of fiscal policy needs to be considered separately.
Policy orientation: from China's reality, in the government's function transformation is not yet fully in place, the enterprise mechanism conversion has not yet completed, institutional and structural contradictions are still very prominent, etc., it is not appropriate to also can not implement a comprehensive expansion of fiscal policy, and can only be implemented not only is conducive to increase investment, open up the market, expanding domestic demand, and is conducive to the restructuring and optimization of the structure, and to promote the reform and deepening of the fiscal policy, that is, the implementation of the fiscal policy should be implemented. We can only implement a fiscal policy that is conducive to increasing investment, developing markets, expanding domestic demand, and adjusting and optimizing structures and promoting institutional reform. It is in view of this, China's active fiscal policy has chosen to adjust the structure, improve the investment environment, enhance economic growth and industry-driven effect for the purpose of social infrastructure construction as the focus of the direction.
Policy composite: expanding domestic demand is multi-faceted, multi-level, so the use of active fiscal policy, for its part, is not limited to expanding financial investment in infrastructure, but to expand demand as the main theme, focusing on a number of policy means of integrated use, reflecting the policy composite. Briefly, in addition to issuing an additional 100 billion yuan of treasury bonds to state-owned commercial banks for infrastructure construction, 270 billion yuan of special treasury bonds were issued at the same time to raise the capital adequacy ratio of state-owned commercial banks; by adjusting the expenditure structure of the central government, 18 billion yuan was freed up to be used exclusively for the basic subsistence protection of laid-off workers in state-owned enterprises, the full and timely payment of pensions to retired persons, and flood relief, etc., i.e., by means of fiscal transfers, the government has been able to provide the necessary financial support to the state-owned commercial banks. The topmost layer of the price system pyramid. Five levels constitute the global pyramid market system and price system, the crown jewel is the dollar reserve currency system or the dollar standard.
The transmission mechanism of the global monetary and financial price system is: the price of the US dollar reserve currency determines the price of global credit; the price of global credit determines the price of the global equity market; the price of the global equity market determines the price of global strategic resources; and the price of global strategic resources determines the price of the final commodity service.