PBOC Governor Zhou Xiaochuan is expected to finally step down from leading the bank this year after a productive 15 years and an extensive record of initiating and implementing reforms. For Zhou’s successor, however, managing growing financial risks will likely be the top priority. Regardless of the choice of governor, monetary policy remains a collective decision of the top leadership in China, and without Zhou at the helm, the PBOC will likely be weaker within that collective in the years ahead.
