Letting the market play decisive role in resource allocation shall be upheld at all times. In the early days of reform and opening-up, the PBC was the sole bank in China bearing high monopolistic power. After the reform was initiated, a large number of banks were established, including hundreds of city commercial banks, thousands of rural commercial banks and rural credit cooperatives.
  First, regulation has to be flexible and able to keep pace with developments in the financial system.   Second, regulation must be as simple as possible and as complex as necessary.   Third, regulation has to be coherent in terms of its content, as well as across borders, regions and sectors.