The so-called "shrinking table" of the central bank refers to the behavior of the central bank to reduce the size of its balance sheet. The ultimate goal of the adjustment of the central bank's balance sheet is to determine the quantity of the base currency (the original item is "reserve currency").

Reasons for shrinking the table: the central bank adjusts the base currency, basically to adjust the excess deposit reserve ratio and keep the money market interest rate at a reasonable level. The money market interest rate constitutes the cost of the bank, which in turn affects the bank loan interest rate, which in turn affects the entity financing. However, because there are many subjects in the balance sheet of the Bank of China that affect the base currency, there is actually no necessary relationship between contraction (expansion) and monetary tightening (monetary easing).

The People's Bank of China (hereinafter referred to as the Central Bank) is the central bank of People's Republic of China (PRC) and an integral part of People's Republic of China (PRC) and the State Council. Under the leadership of the State Council, formulate and implement monetary policies, prevent and resolve financial risks, and maintain financial stability.

1948 12 1 The People's Bank of China was formed by merging North China Bank, Beihai Bank and Northwest Farmers Bank. 1September, 983, the State Council decided that the People's Bank of China should exclusively exercise the functions of the national central bank of China. 1995 March 18, the third session of the Eighth National People's Congress passed the Law of the People's Republic of China on the People's Bank of China. So far, the People's Bank of China has been legally established as the central bank.