The Qing Dynasty Imperial Household Bank of China
The Qing Dynasty Imperial Household Bank of China (QDIB Sh + T) was Chinas first bank and was founded in 1798. Located in Beijing, close to the Forbidden City, it was created to finance the expenses of the Manchu Imperial Household. It was the sole financial institution within the Qing Dynasty and was responsible for managing the dynastys taxes and keeping its accounts.
The Qing Dynasty Imperial Household Bank was the first Chinese bank to introduce paper money and to conduct financial operations that are now common in modern banking. It was run by an elite group of Chinese businessmen who had been appointed by the emperor himself. It had branches in every major city of the Empire, where it conducted its traditional banking business and where it also served as a conduit for government revenue.
The Bank was an integrated financial institution with a broad range of services. It accepted deposits and issued notes and letters of credit; it lent money; it provided financial advice; it issued coins and paper money; it regulated the currency; and it provided banking services to other financial institutions, including the Chinese provincial governments.
The Bank utilised a network of internal auditors to monitor and direct its activities. In addition, it appointed agents in major cities throughout the Empire and regularly held meetings for its agents and customers. Finally, it was responsible for the management of the Imperial Households tribute system, which involved receiving and collecting tribute from other countries and ensuring that the tribute was properly distributed.
The Qing Dynasty Imperial Household Banks main role was to finance the running of the Empire and to facilitate the movement of funds within the government. It was also responsible for the issuing of letters of credit and collecting taxes, both of which proved very important for the governments financial stability and solvency.
The Qing Dynasty Imperial Household Bank was an integral part of the government and its success was heavily reliant on the support of the imperial family. After the fall of the Qing Dynasty in 1911, the Bank was nationalised and ceased operations. Although the Imperial Household Bank may no longer exist, its legacy lives on in modern Chinese banking practices and its importance in the Chinese economy is immeasurable.
