A research on the effectiveness of coordination mechanisms of central bank on cross-shipping

QIU Hong; YE Si-Yu

PDF(959 KB)

Science Research Management ›› 2021, Vol. 42 ›› Issue (8) : 111-121.

A research on the effectiveness of coordination mechanisms of central bank on cross-shipping

Qiu Hong¹, Zhu Nan², Ye Siyu³

Author information +

History +

Abstract

In order to avoid overuse of the public service of RMB cash issuance and processing, the People′s Bank of China (PBOC) has made a regulation on the fit-sorting of the cash returned to the RMB issue treasury from the private sector of commercial banks. Commercial banks, due to lack of corresponding supervision and punishment rules, driven by their own interests, are still tend to adopt cross-shipping to avoid fit-sorting obligations, which makes it difficult to implement the regulation of the central bank. To solve this problem, it is necessary for PBOC to choose the appropriate coordination mechanism to supervise and encourage the private sector in the cash supply chain to fulfill the duty of fit-sorting, reduce the cross-shipping and the social cost of the cash circulation. In this context, the research on coordination mechanism in the management of RMB issuance and circulation not only provides theoretical reference for PBOC to formulate relevant implementation rules, but also helps the banking industry to achieve the strategic goal: "safe circulation of cash, cost reduction, capital saving and efficiency increasing".
With combination of the closed-loop supply chain theory with the practice of RMB issuance and circulation, the paper establishes the framework of cash closed-loop supply chain. In the forward cash supply chain, the commercial bank withdraws the issuing funds from the RMB issue treasury of the central bank to their commercial vaults，and pays them to the public at Banking Offices. So RMB cash enters the market and the currency issuance is completed. In the reverse cash supply chain, the public deposits their cash at commercial banking offices, then commercial banks recycle them to the RMB issue Treasury of the central bank and the currency withdrawal is completed.
From the perspective of the incentive of commercial banks, we build a cost model about cash flow operation based on the framework of cash closed-loop supply chain. Next, we analyze the optimal strategy of fit-sorting and dispatching under the elastic fee on different types of commercial banks, and theoretically prove that this mechanism could motivate commercial banks to carry out fully fit-sorting. We compared the optimal strategy of fit-sorting the different types of commercial Banks through numerical examples, discussed the coordination effect of the elastic penalty mechanism on the cross-shipping decisions. And we reached the following conclusions: (1) the elastic penalty mechanism has the dual effect of reward and punishment for commercial banks with different deposits and withdrawals. To be specific, the commercial banks (A) with the amount of pays out withdrawal greater the deposits, must fit-sorting all the deposits to avoid punishment, while the commercial banks (B) with deposits less than the amount of pays out withdrawal, can be rewarded by choosing excessive fit-sorting. (2) Under the elastic penalty mechanism, commercial banks will change their original strategies of fit-sorting and dispatching, and the reduction for cross-shipping is positively related to escort price, and changes in the opposite direction with cash storage price as well as private fit-sorting price. (3) The impact effect of the elastic penalty mechanism on the cost of commercial banks is positively related to the price of fit-sorting service of the central bank, and changes in the opposite direction with the cash storage price of the issue Treasury and the private fit-sorting price. Therefore, under the trend of cash logistics outsourcing and cash processing cost reduction, the elastic penalty mechanism can promote commercial banks to reduce cross-shipping behavior more effectively and fulfill the duty of fit-sorting in a way with the minimum social cost.

Key words

RMB / cash closed-loop supply chain / elastic penalty mechanism / commercial bank / cross-shipping / agent custodial inventory

Cite this article

EndNote

Ris (Procite)

Bibtex

Download Citations

Qiu Hong, Zhu Nan, Ye Siyu. A research on the effectiveness of coordination mechanisms of central bank on cross-shipping[J]. Science Research Management. 2021, 42(8): 111-121

References

[1] 中国人民银行总行在《中国人民银行办公厅关于银行业金融机构对外误付假币专项治理工作的指导意见》银办发[2013]14号文件[EB/OL]. http://www.geron-e.com/info/2074. The Head Office of the People's Bank of China, in the document "guidance of the General Office of the People’s Bank of China on the Special Treatment of Mispayment of Counterfeit Currency by Banking Financial Institutions” Yinbanfa [2013] No. 14. [EB/OL]. http://www.geron-e.com/info/2074.

[2] 中国人民银行：人民银行召开2020年全国货币金银和安全保卫工作电视电话会议[EB/OL]. 中国人民银行网，http://www.gov.cn/xinwen/2020-04/04/content_5499014.htm. The People’s Bank of China: The People's Bank of China held a teleconference on national currency, gold, silver and security work in 2020 [EB/OL].PBOC.com, http://www.gov.cn/xinwen/2020-04/04/content_5499014.htm.

[3] 人行武汉分行、荆州中支、随州中支联合课题组,肖向宏,肖朝晖. 对人民银行发行库物流管理标准化的探索与思考[C]. 湖北钱币专刊总第七期:湖北省钱币学会,2008:55+60. Joint research group of Wuhan Branch, Jingzhou middle branch and Suizhou middle branch of the people's Bank of China,XIAO X H and XIAO C H.Exploration and thinking on logistics management standardization of the people's Bank of China [C]. Hubei coin special issue No.7: Hubei Coin Society, 2008:55+60.

[4] 郭元华. 对钞票处理中心管理模式的探讨[J]. 济南金融, 2007,9:73.Guo Yuanhua. Discussion on the Management Mode of Banknote Processing Center[J]. Jinan Finance, 2007,9:73.

[5] 中国人民银行石家庄中心支行课题组,孙立新,阎向阳.对构建人民币监管体系的研究与思考[J].河北金融,2006(10):49-52.Research group of Shijiazhuang central sub branch of the people's Bank of China,SUN Lixin,YAN Xiangyang. Research and thinking on the construction of RMB supervision system[J].Hebei Finance,2006(10):49-52.

[6] 马德伦.货币发行和反假货币工作方面的成就[J].中国金融家,2011(1):46-49. MA Delun.Achievements in currency issuance and anti-counterfeit currency work[J].China Financialyst,2011(1):46-49.

[7] 王晓军. 欧洲国家现钞处理社会化清分模式的比较与借鉴[J]. 西部金融, 2014,3:89-93.WANG Xiaojun.Comparison and reference of the socialized sorting mode of cash processing in European countries[J]. West China Finance, 2014,3:89-93.

[8] 黄忠海. 基层发行库风险控制体系建设的现实思考[J]. 内蒙古金融研究, 2014,1:77-78.HUANG Zhonghai. Practical thinking on the construction of risk control system of grassroots distribution library [J].Northern Finance Journal, 2014,1:77-78.

[9] 孟建华.论商业银行在人民币流通中的社会责任[J].上海金融,2012(9):109-110+119.MENG Jianhua. On the social responsibility of commercial banks in the circulation of RMB [J]. Shanghai Finance, 2012 (9): 109-110+119.

[10] 左运光.商业银行现金全额清分工作存在的问题及对策:东莞视角[J].南方金融,2013(12): 110-111.ZUO Yunguang. Problems and countermeasures in the fit-sorting of commercial banks: Dongguan perspective [J]. Southern Finance, 2013(12): 110-111.

[11] 李景森. 商业银行现金库存管理[D].南京：南京理工大学,2013. LI Jingsen.Cash inventory management of commercial banks [D]. Nanjing:Nanjing University of Technology,2013.

[12] 郝雨. 广州工商银行库存现金集约化管理研究[D].兰州:兰州大学,2013.HAO Yu. Research on the intensive management of cash in treasury of industrial and Commercial Bank of Guangzhou [D]. Lanzhou:Lanzhou University, 2013.

[13] BLACKETER B, B Evetts. Forging your bank's link in the new currency supply chain [EB/OL]. http://www.aba.com/NR/rdonlyres/EDE46D1D-67B5-4778-81E9-83EB42B30881/37599/CashSupplyWhitePaper2004.

[14] NADIA M. How should Central Banks determine and control their bank note inventory? [J]. Journal of Banking & Finance, 2005,29(12):3099-3119.

[15] RAJAMANI D, H N Geismar, C Sriskandarajah. A framework to analyze cash supply chains [J]. Production and Operations Management.2006,15(4):544–552.

[16] QIU Hong, ZHU Nan, WANG Long, LES Foulds. Outsourcing of operations in the banking industry: A case from China [J]. The IUP Journal of Supply Chain Management, 2017,14(3):07-25.

[17] BOTTANI E, MONTANARI R, RINALDI M, & VIGNALI G. Modeling and multi-objective optimization of closed loop supply chains: A case study [J]. Computers & Industrial Engineering, 2015,87:328-342.

[18] HUANG Y, ZHU Y, KUAMR S, et al. A framework for analyzing the US coin supply chain[J]. Production and Operations Management, 2020. https://doi.org/10.1111/poms.13168

[19] 朱南,王龙. 我国银行业现金物流管理模式初探[J].管理现代化，2007, 6:18-20. ZHU Nan, WANG Long.A preliminary study on the cash logistics management model of China's banking industry [J]. Management Modernization, 2007, 6:18-20

[20] 朱南,王龙. 基于供应链的中国银行业现金物流管理探析[J].物流技术,2009,28(4):102-105. ZHU Nan, WANG Long. Analysis of cash logistics management in China's banking Industry based on supply Chain[J].Logistics Technology,2009,28(4):102-105.

[21] 刘钊. 商业银行现金供应链管理分析与提升[D].成都：电子科技大学,2018.LIU Zhao.Analysis and improvement of cash supply chain management on commercial banks [D]. Chengdu:University of Electronic Science and Technology of China,2018.

[22] 邓舒仁.基于现代物流理论的人民币发行与流通体系优化研究[J].西部金融,2016(9):92-96. DENg Shuren.Optimization of RMB issuance and circulation system based on modern logistics theory [J]. Western Finance, 2016 (9): 92-96.

[23] 邓海燕,肖睿.钞票清分社会化问题思考[J].西部金融,2011(10):49-50.DENG Haiyan, XIAO Rui.Thoughts on the socialization of banknote clearing [J]. Western Finance,2011(10):49-50.

[24] 邓海燕.规制理论视角下金融服务外包监管问题的思考[J].西部金融,2013(11):52-56.DENG Haiyan.On the supervision of financial service outsourcing from the perspective of regulatory theory [J]. Western Finance, 2013(11):52-56.

[25] 文先明, 苏孟婷, 王姣. 第三方互联网支付对我国广义货币流通的影响[J]. 经济数学, 2019,36(2):01-09.WEN Xianming, SU Mengting, WANG Jiao.The influence of third-party Internet payment on China's broad money circulation [J]. Economic Mathematics,2019,36(2):01-09.

[26] 课题组, 李宝庆, 肖睿. 差异性视角下现金流通规律及影响因素研究——基于西部9省(市、区)的对比分析[J]. 西部金融, 2019(5):17-23.Research Group, LI Baoqing,XIAO Rui. Research on the law of cash flow and its influencing factors from the perspective of difference——Based on the comparative analysis of 9 provinces (cities and districts) in the West [J]. Western Finance,2019(5):17-23.

[27] 聂景.商业银行和人民币流通质量的关系[J].中国外资,2019(1):88-90. NIE Jing.The relationship between commercial banks and the quality of RMB circulation[J].China Foreign Investment,2019(1):88-90.

[28] 贾建新.对强化人民币管理和建设社会化问题的再认识[J].财经界(学术版),2016(23):34. JIA Jianxin.Recognition of strengthening RMB management and socialization of construction[J].Finance and Economics (Academic Edition),2016(23):34.

[29] 刘英.基层商业银行人民币流通管理服务水平有待提高[J].时代金融,2015(17):98.LIU Ying.The level of RMB circulation management service of grassroots commercial banks needs to be improved [J].Time Finance, 2015(17):98.

[30] 邱虹,朱南,张霆.基于现金闭环供应链中重复调运问题的协调机制研究[J/OL].中国管理科学:1-11[2021-03-04].https://doi.org/10.16381/j.cnki.issn1003-207x.2020.0978. QIU Hong, ZHU Nan, ZHANG Ting. Research on coordination mechanism based on cross-shipping in cash closed-loop supply chain [J/OL].Chinese Management Science:1-11[2021-03-04].https://doi.org/10.16381/j.cnki.issn1003-207x.2020.0978.

[31] 李新然,刘媛媛.政策干预下的闭环供应链研究综述[J].科研管理,2018,39(S1):308-316. LI Xinran, LIU Yuanyuan. Review of the closed-loop supply chain under intervention of policies [J]. Science Research Management, 2018,39(S1):308-316.

[32] 李新然,王奇琦.政府补贴下考虑销售努力的闭环供应链研究[J].科研管理,2017,38(08):51-63. LI Xinran, WANG Qiqi. A research on the closed-loop supply chain with sales effort under the government subsidy [J]. Science Research Management, 2017,38(8):51-63.