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Laws of the People's Republic of China |
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| Category | BANKING | Organ of Promulgation | The Standing Committee of the National People's Congress | Status of Effect | In Force |
| Date of Promulgation | 1995-05-10 | Effective Date | 1995-07-01 |
|
Commercial Banking Law of the People's Republic of China |
|---|
Chapter I General Provisions
Chapter ll Establishment and Organization of A Commercial Bank
Chapter lll Protection of Depositors
Chapter IV Basic principles for Loans and Other Businesses
Chapter V Financial Accounting
Chapter VI Supervision and Administration
Chapter VII Takeover and Termination
Chapter VIII Legal Liabilities
Chapter IX Supplementary Provisions Article 1 This Law is formulated to protect the legitimate rights and Article 2 The commercial banks referred to in this Law are bodies Article 3 A commercial bank may engage in some or all of the following (1) receiving money deposits from the public; (2) extending short, medium and long-term loans; (3) providing domestic and international settlement services; (4) discounting bills; (5) issuing financial bonds; (6) acting as agent of issuing, cashing and underwriting government bonds; (7) dealing in government bonds; (8) inter-bank call-money business; (9) dealing or acting as agent in foreign exchange transactions; (10) providing L/c service and guarantee; (11) acting as agent in collection and payment and insurance business; (12) providing safe deposit box service; (13) other businesses approved by the People's Bank of China. The business scope of a commercial bank is defined by the statute thereof Article 4 A commercial bank operates independently, takes up A commercial bank shall conduct its business in accordance with the law, A commercial bank shall assume civil responsibilities independently with Article 5 A commercial bank shall abide by the principle of equality, Article 6 A commercial bank shall protect its depositors' legitimate Article 7 In doing credit business, a commercial bank shall strictly A commercial bank is protected by law to retrieve the principal and Article 8 A commercial hank shall abide by the relevant provisions of the Article 9 A commercial bank shall abide by the principle of fair Article 10 A commercial bank shall be subject to supervision and Article 11 The establishment of a commercial bank shall require the No organization or individual shall receive money deposits from the public Article 12 The establishment of a commercial bank shall satisfy the (1) having its statute in pursuance of this Law and the Company Law of the (2) having the minimum registered capital defined by this Law; (3) having chairman of directors (president), general manager and other (4) having complete organization and management; (5) having up-to-standard business site, safety measures and other The People's Bank of China in examining the application for the Article 13 The minimum registered capital for the establishment of a The People's Bank of China may readjust the floor amount of the registered Article 14 The applicant shall apply to the People's Bank of China for (1) an application for the establishment of a commercial bank, specifying (2) a feasibility study report; (3) other documents and information required by the People's Bank of China. Article 15 The application having been examined to be in compliance with (1) a draft of the statute of the commercial bank to be established; (2) qualification documents of the senior managerial staff to be employed; (3) a certificate of capital confirmation from a legitimate capital (4) a list of the names, capital contributions and shares of the share (5) credit certificate and other relevant information of the share (6) the guideline and plan for the operation of the commercial bank; (7) information of the business site, safety measures and other facilities (8) other documents and information required by the People's Bank of China. Article 16 Having been approved for establishment, the commercial bank Article 17 The Company Law of the People's Republic of China is A commercial bank which was established prior to the promulgation of this Article 18 A commercial bank solely owned by the state shall have a board The Board of Supervisors shall execise control of the solely state-owned Article 19 A commercial bank may set up its branches within and outside A commercial bank in setting up a branch within the territory of the Article 20 For the establishment of a branch, the applying commercial (1) an application for establishing a commercial bank branch whereby (2) a financial report of the last two years of the applicant; (3) certificates of qualifications of the senior managerial officials to (4) the business guideline and plan; (5) information related to the business site, safety measures and other (6) other documents and information required by the People's Bank of China. Article 21 Having been approved to be established, a commercial bank Article 22 A commercial bank shall apply to its branches a financial The branch of a commercial bank shall not be qualified as a body corporate Article 23 Having been approved to be established, a commercial bank and When a commercial bank or its branch has not started operation for over Article 24 In the event of one of the changes listed below, a commercial (1) change of the name of the commercial bank; (2) change of the registered capital; (3) change of the business sites of the head office and/or its branch(es) (4) readjustment in business scope; (5) change of share holders, each holding more than ten percent of the (6) revision of the statute; (7) other changes specified by the People's Bank of China. When a commercial bank needs to replace its chairman of the board of Article 25 The Company Law of the People's Republic of China is The split or merger of commercial banks shall require the examination and Article 26 A commercial bank shall use the banking permit pursuant to law Article 27 Anyone who has one of the following backgrounds shall not be (1) having once been sentenced to punishment for the crimes of (2) having served as a director of the board of directors, the director or (3) Having been the legal representative of a company whose business (4) Having failed to repay a fairly large debt already due. Article 28 Any organization or individual intending to buy more than ten Article 29 A commercial bank in its savings deposit business shall abide With regard to savings deposits of individuals, a commercial bank has the Article 30 With regard to deposits of any organization, a commercial bank Article 31 A commercial bank shall fix its interest rates for deposits Article 32 A commercial bank shall place a required reserve with the Article 33 A commercial bank shall guarantee the payment of the principal Article 34 A commercial bank shall conduct its loan business in Article 35 A commercial bank shall conduct strict examination of the A commercial bank shall implement a system in which the examination and Article 36 A commercial bank shall extend a loan against a security, and A borrower may be exempted from securities after the commercial bank has Article 37 A commercial bank shall sign a written contract with its Article 38 A commercial bank shall fix its interest rates for loans in Article 39 A commercial bank in its loan business shall abide by the (1) the capital adequacy rate shall not fall short of eight percent; (2) the ratio of the outstanding balance of loans to that of deposits (3) the ratio of the outstanding balance of liquid assets to that of (4) the ratio of the outstanding balance of loans to one borrower to that (5) other stipulations by the People's Bank of China on asset and When a commercial bank which was established prior to the promulgation of Article 40 A commercial bank shall not extend unsecuried loans to related The related persons mentioned in the previous paragraph refer to: (1) the members of the board of directors, members of the board of (2) the company, enterprise or other economic organization wherein the Article 41 No organization or individual may force a commercial bank to A commercial bank owned solely by the state should provide loans for Article 42 A borrower shall repay the principal and interest of a loan on When a borrower fails to repay a secured loan, the commercial bank has the A borrower shall assume the responsibility for failure to repay the Article 43 A commercial bank shall not engage in trust investment or A commercial bank shall not invest in non-bank financial institutions or Article 44 A commercial bank in handling settlements such as acceptance, Article 45 A commercial bank shall apply for approval for issuing Article 46 Inter-bank loan shall be subject to the time limit defined by The call money for lending shall be only the idle fund after depositing Article 47 A commercial bank shall not receive money deposits or extend Article 48 An enterprise or undertaking may open a principal account with No organization or individual shall deposit the fund of an organization in Article 49 A commercial bank shall fix its business hours to the Article 50 A commercial bank shall collect commission fees on handling Article 51 A commercial bank shall preserve all the financial statements, Article 52 The staff of a commercial bank shall abide by the law, (1) taking advantage of their positions to demand or accept bribes, or (2) taking advantage of their positions to commit embezzlement, (3) providing loans or guarantee to relatives or friends in violation of (4) holding positions concurrently at other economic institution(s); (5) other acts in violation of the law, administrative decrees and Article 53 The staff of a commercial bank shall not disclose state Article 54 A commercial bank shall establish and improve its financial Article 55 A commercial bank shall, in accordance with relevant state Article 56 A commercial bank shall announce its business performance and Article 57 A commercial bank shall retain a reserve against bad and Article 58 The fiscal year of a commercial bank begins on the first of Article 59 A commercial bank shall formulate its business rules, Article 60 A commercial bank shall establish and improve its systems of A commercial bank shall conduct regular examination and checks on its Article 61 A commercial bank shall periodically submit to the People's Article 62 The People's Bank of China is authorized to exercise Article 63 A commercial bank is subject to the audit control by the Article 64 When a commercial bank is in or is liable to be in a credit The purpose of the takeover is to take necessary measures with regard to Article 65 The People's Bank of China shall determine a takeover and (1) the name of the commercial bank to be taken over; (2) the reason(s) for the takeover; (3) the organization of the takeover; (4) the time limit of the takeover. The decision for the takeover shall be made public by the People's Bank of Article 66 A takeover begins on the day of implementation of the takeover The organization in charge of the takeover shall begin exercising the Article 67 On expiration of the term of the takeover, the People's Bank Article 68 Takeover shall be terminated in any of the following cases: (1) that the term of the takeover expires or the prolonged term of (2) that prior to the expiration of the term of takeover, the commercial (3) that prior to the expiration of the term of takeover, the commercial Article 69 When a commercial bank splits, or merges with another one, or A liquidation group shall be formed to conduct liquidation and repayment Article 70 When a commercial bank is closed down by order on account of Article 71 When a commercial bank is incapable of repaying its mature At the time of bankruptcy liquidation, a commercial bank shall give Article 72 A commercial bank shall be terminated on account of Article 73 A commercial bank shall assume the responsibility of paying (1) delaying or refusing repayment of the principal and interests of a (2) refusing to cash checks and to debit or credit accounts in violation (3) illegally investigating, freezing or withholding and transferring the (4) other actions inflicting damages to depositors or other clients in Article 74 Where one of the situations listed below occurs, the people's (1) issuing financial bonds or borrowing funds from outside China without (2) dealing in government bonds, or dealing in or acting as agent in (3) engaging in trust investment and stock business in the country, or (4) making investment in non-bank financial institutions or enterprises in (5) extending unsecuried loans to related persons or extending loans (6) submitting false financial statements or financial statements which (7) refusing to accept the supervision and examination by the People's (8) leasing or lending banking permit. Article 75 When one of the situations cited in Article 73 of this Law or (1) having failed to place required reserve for deposits in pursuance of (2) having failed to abide by the stipulations on capital adequacy, the (3) setting up a branch without official approval; (4) making splits or merges without official approval; (5) using call money longer than the designated time or using call money (6) receiving money deposits or extending loans by raising or lowering Article 76 When a commercial bank has behavior referred to in Articles Article 77 When one of the situations listed below occurs, the People's (1) using the word "bank" without official approval; (2) buying more than ten percent of the total shares of a commercial bank (3) opening a bank account in the name of an individual with the fund of Article 78 When a commercial bank fails to submit the relevant Article 79 Anyone who sets up a commercial bank without official approval Anyone who counterfeits, alters or transfers the banking permit of a Article 80 A borrower who obtains a loan by fraud thus constituting a Article 81 Any of the staff of a commercial bank who, by taking advantage If a loan extended or guarantee provided in connection with a behavior Article 82 Any of the staff of a commercial bank who taking advantage of Article 83 Any of the staff of a commercial bank who causes a loss to the Any of the staff of a commercial bank who causes a loss by extending a Article 84 Any of the staff of a commercial bank who discloses state or Article 85 When an organization or individual forces a commercial bank to Any of the staff of a commercial bank failing to reject forceful demands Article 86 If a commercial bank and its staff are not reconciled to the Article 87 Commercial banks which have been established with official Article 88 If laws and administrative decrees have special stipulations Article 89 The relevant provisions of this Law are applicable to urban Article 90 The relevant provisions of this Law are applicable to the Article 91 This Law shall come into effect on July 1, l995.
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Chapter I General Provisions
interests of commercial banks, depositors and other clients, standardize the
behavior of commercial banks, improve the quality of funds, strengthen
supervision and administration, ensure safety and soundness of commercial
banking, maintain a normal financial order and promote the development of the
socialist market economy.
corporate established in accordance with this Law and the Company Law of the
People's Republic of China to receive money deposits from the public, extend
loans, provide settlement services and do other relevant businesses.
businesses:
and reported to the People's Bank of China for approval.
responsibility for all risks it may encounter and for its own profits and
losses it may bear, and exercises self-regulating mechanism on the management
principle of economic efficiency, safety and liquidity.
free from interference by any department or individual.
its entire assets as a body corporate.
voluntariness, fairness, honesty and good faith in doing business with its
clients.
rights and interests from encroachment by any organization or individual.
examine the credibility of a borrower and persist in extending loans against
collateral in order to ensure recalling loans on time.
interests of a loan from the borrower thereof in accordance with the law.
law and administrative decrees and regulations in doing business and shall not
impair the interests of the state or the public.
competition in doing its business and refrain from unfair competition.
administration by the People's Bank of China in pursuance of the law.
Chapter II Establishment and Organization of A Commercial Bank
examination and approval by the People's Bank of China.
or do any other businesses of a commercial bank or use the title of "bank"
without the approval of the People's Bank of China.
following requirements:
People's Republic of China;
senior managerial personnel with expertise and professional experience
required by their positions;
facilities relevant with the business thereof.
establishment of a commercial bank should take into account the need for
economic growth and the competition of the banking industry.
commercial bank shall be RMB one billion yuan (RMB 1,000,000,000 yuan). Of the
commercial banks, an urban cooperative commercial bank shall need a minimum
registered capical of RMB 100 million yuan (RMB 100,000,000 yuan) and a rural
cooperative commercial bank shall need a minimum registered capital of RMB 50
million yuan (RMB 50,000,000 yuan). Registered capital herein referred to
should be paid-up capital.
capital necessary for the establishment of a commercial bank in the light of
economic development, but the amount shall not be lower than those specified
in the previous paragraph.
the establishmemt of a commercial bank by submitting the documents and
information listed below:
the name, location, registered capital and business scope of the bank thereof;
the provisions of Article 14 of this Law, the applicant shall fill a formal
application form and submit the documents and information listed below:
confirmation authority;
holders of the commercial bank;
holders, each holding more than ten percent of the registered capital of the
commercial bank;
relevant with the business of the commercial bank;
shall be issued banking permit by the People's Bank of China and with it
register with the Administration for Industry and Commerce for a business
license.
applicable to the form and structure of the organization of a commercial bank.
Law may follow the original provisions if its organizational form and
structure do not entirely conform with the Company Law of the People's
Republic of China, and the time limit for the retention thereof shall be
decided by the State Council.
of supervisors. The Board of Supervisors shall be composed of representatives
of the People's Bank of China and governmental departments, experts from other
relevant departments and representative of the staff of the bank. The way of
establishing the Board of Supervisors shall be defined by the State Council.
commercial banks over the quality of credit funds, the ratio of assets and
liabilities, the hedging and appreciation of the state-owned assets and other
relevant matters of the bank and the behavior of its high ranking managerial
personnel violating the law, administrative decrees and regulations or statute
or acts damaging the interests of the bank.
the territory of the People's Republic of China in keeping with its business
needs. A branch thereof shall be set up with the approval of the People's Bank
of China. Branches of a commercial bank inside the People's Republic of China
need not be set up in conformity with administrative divisions.
People's Republic of China shall allocate to it a working capital in keeping
with the business scope thereof as is stipulated. The total sum of the working
capital to be allocated to all branches shall not exceed sixty percent of the
total capital of the commercial bank proper.
bank shall submit the documents and information listed below:
should be specified the name, amount of working capital, business scope and
the locations of the headquarters and branch of the commercial bank;
be appointed;
facilities relevant with the business thereof;
branch shall be granted a banking permit by the People's Bank of China, and
with the permit shall register with the Administration for Industry and
Commerce and obtain a business license.
system of unified accounting and centralized fund allocation and
level-by-level management.
and it shall do business within the scope authorized by the headquarters which
shall assume the civil responsibilities thereof.
its branches shall be announced to the public by the People's Bank of China.
six months from the date of being granted a business license without proper
reason or has automatically suspended operation for over six consecutive
months after starting its operation, the People's Bank of China shall revoke
its banking permit and make a public announcement thereof.
bank shall need to obtain the approval from the People's Bank of China:
of the bank;
total capital or total shares of the commercial bank;
directors, or general manager with a new one, the qualifications of the
appointee shall be reported to the People's Bank of China for examination.
applicable to the split and merger of commercial banks.
approval by the People's Bank of China.
and administrative decrees and regulations. It is prohibited to counterfeit,
tamper with, transfer, lease or lend the banking permit.
fit for high managerial positions in a commercial bank:
embezzlement, bribery, illegal possession of property, misappropriation of
public property or disruption of social economic order, or having been
deprived of political rights for crimes;
manager of a company which went bankrupt because of mismanagement and having
been personally responsible for the bankruptcy;
license had been revoked on account of violation of the law and having been
personally responsible thereof;
percent of the shares of a commercial bank shall have to obtain the approval
from the People's Bank of China.
Chapter III Protection of Depositors
by the principle of voluntariness in depositing, freedom of withdrawal,
interest on every deposit and keeping secret for the depositor.
right to reject the demand of any deparment or individual for investigation,
freezing, withholding or transferring a savings deposit, unless it is
otherwise defined by the law.
has the right to reject the demand of any other organization or individual for
investigation; unless it is otherwise defined hy the law or administrative
decrees and regulations; it has the right to reject the demand of any other
organization or individual for freezing, withholding or transferring such a
deposit, unless it is otherwise defined by the law.
pursuant to the ceiling and floor of interest rates defined by the People's
Bank of China and make public announcement thereof.
People's Bank of China and keep adequate standby reserve in accordance with
the stipulations by the People's Bank of China.
and interests of every deposit and shall not delay or refuse the payment
thereof.
Chapter IV Basic Principles for Loans and Other Businesses
accordance with the need for the development of the national economy and
social progress and under the guidance of the state industrial policy.
usage, capability and form of repayment as well as other relevant matters of a
borrower in order to extend a loan.
the actual extending of a loan are conducted by separate departments and the
examination and approval of a loan are conducted at different levels.
conduct strict examination of the repaying capability, the ownership and value
of the mortgage or pledge, and the feasibility of the realization of the
mortgage or pledge.
conducted examination and found it to have a high credit rating and to have
the capability of repayment.
borrower on the extending of a loan. The contract shall specify the category,
usage, amount, rate of interest, date and form of repayment, default
liabilities and other matters deemed as necessary by the two parties.
accordance with the ceiling and floor for the rates of interest for loans
fixed by the People's Bank of China.
regulations on the ratios of assets and liabilities listed below:
shall not exceed seventy-five percent;
liquid liabilities shall not fall short of twenty-five percent;
of the capital of the bank shall not exceed ten percent;
liability management.
this Law is found to have its ratios of assets and liability at variance with
the stipulations hereinbefore, it is required to conform to the stipulations
within a designated time limit. Concrete rules for the implementation shall be
defined by the State Council.
persons; and shall not provide related persons with securied loans on
conditions more favorable than those to a borrower of a similar loan.
supervisors, managerial personnel and staff of the credit business department
of a commercial bank, and their close relatives;
aforesaid persons have made investment or assumed senior managerial positions.
extend a loan or provide guarantee for a loan. A commercial bank shall have
the right to refuse any organization's or individual's demand for a loan or
guarantee.
special projects approved by the State Council. Losses resulting from such
loans shall be compensated with appropriate measures taken by the State
Council. Concrete measures shall be defined by the State Council.
schedule.
right to be repaid the principal and interest of the loan or the priority of
getting paid with the collateral thereof. A commercial bank shall dispose of
the real estate or stocks on mortgage or pledge within a year from the date of
obtaining.
unsecured loan falling due in accordance with the contract thereof.
stock business, or invest in real estate not for its own use within the
People's Republic of China.
enterprises within the People's Republic of China. A commercial bank which has
made investment in non-bank financial institutions or enterprises prior to the
promulgation of this Law shall be subject to other provisions stipulated by
the State Council.
remittance and collection shall make timely cashing and entries pursuant to
relevant provisions without detaining bills or instruments or dishonoring them
in violation of regulations. The relevant provisions for the time limit for
bill acceptance and entries in accounting books should be made public.
financial bonds or seeking loans outside China in accordance with the law and
administrative decrees.
the People's Bank of China and the maximum time for such financing shall not
exceed four months. It is prohibited to use call money to extend loans on
fixed assets or to make investment.
required reserve, leaving adequate standby reserve and repayment of loans
falling due to the People's Bank of China. The call money for borrowing shall
be used to meet the position shortage in interbranch settlement and
interbranch remittance and temporary needs for turnover of funds.
loans by raising or lowering interest rates or by other unjustifiable means in
violation of regulations.
a commercial bank of its own choice for day to day transfer and settlement of
accounts and cash receipt and payment, but it shall not open two or more
principal accounts.
an account opened in the name of an individual.
convenience of its clients and make public announcement thereof. A commercial
bank shall conduct its business during its announced business hours and shall
not suspend business or shorten its business hours at will.
business and providing services in accordance with the stipulations of the
People's Bank of China.
business contracts and other information for a specified period in accordance
with relevant state regulations.
administrative decrees and regulations and other rules for the administration
of various businesses and shall not have wrong conducts listed below:
violating relevant state regulations to accept commissions or service fees
under any pretext;
misappropriation or unlawful possession of the funds of the bank or of clients;
regulations;
regulations and rules in business management.
secrets or commercial secrets which they come into possession during their
service in the bank.
Chapter V Financial Accounting
accouncing system in accordance with the law and the state unified accounting
standards as well as the relevant stipulations of the People's Bank of China.
regulations, truthfully and in an all-round way record and reflect its
business activities and financial position, produce its annual financial
accounting report and timely submit its financial statements to the People's
Bank of China and the treasury department. A commercial bank shall not
establish accounting books other than those legally specified.
audited statement of the previous fiscal year within three months after the
end of every fiscal year in accordance with the stipulations of the People's
Bank of China.
doubtful accounts and write off bad debts in pursuance of relevant state
regulations.
January and ends on the thirty-first of December of the Gregorian calendar.
Chapter VI Supervision and Administration
establish and improve its business management, the system of cash control and
its security system in accordance with the stipulations of the People's Bank
of China.
examining and checking deposits, loans and settlement, bad and doubtful
accounts and other business activities.
branches.
Bank of China balance sheets, profit and loss statements and other financial
statements and information.
examination of and supervision over the deposits, loans, settlements and bad
and doubtful accounts of a commercial bank at any time in accordance with the
provisions of Chapter III, Chapter IV and Chapter V of this Law. The personnel
in charge of the examination and supervision should produce legitimate
certificates at the time of conducting examination and supervision. A
commercial bank shall provide financial accounting information, business
contracts and other information about its business and management at the
request of the People's Bank of China.
auditing authorities in accordance with the audit law and regulations.
Chapter VII Takeover and Termination
crisis thus seriously threatening the interests of the depositors, the
People's Bank of China may take over the said bank.
the commercial bank taken over in order to protect the interests of the
depositors and help the commercial bank resume its normal operation. The
debtor-creditor relationship of the commercial bank existing before the
takeover remains unchanged.
organize its implementation. The People's Bank of China shall specify the
following contents in its takeover decision:
China.
decision.
power over the management of the commercial bank from the day of implementing
the takeover decision.
of China may determine to prolong the takeover, but the term shall not exceed
two years to the maximum.
takeover determined by the People's Bank of China expires;
bank has recovered its capacity of normal operation; or
bank has been merged or declared bankrupt in accordance with the law.
dissolves on reasons for dissolution pursuant to the statute of the bank, it
shall submit an application to the People's Bank of China with reasons for the
dissolution and a plan for liquidation, including repaying the principals and
interests of deposits. It shall be dissolved with the approval from the
People's Bank of China.
of the principals and interests of deposits shall be made in time according to
the plan for liquidation when a commercial bank is to be dissolved. The
People's Bank of China shall oversee the liquidation through.
its banking permit having been revoked, the People's Bank of China shall lose
no time to form a liquidation group to conduct liquidation and repay the
principals and interests of deposits in time according to the plan for
liquidation in accordance with the law.
debts, may, with the consent of the People's Bank of China, be declared
bankrupt by the People's Court. When a commercial bank is declared bankrupt in
accordance with the law, the People's Court may organize the People's Bank of
China and other relevant departments and personnel to form a liquidation group
to conduct liquidation.
priority to paying the principal and interests of savings deposits after
paying the liquidation fees and its staff wages and labor insurance fees in
arrears.
dissolution, being closed down by order or declared bankrupt.
Chapter VIII Legal Liabilities
interest accrued and other civil responsibilities of compensation for damages
to the property of depositors or other clients under one of the situations
listed below:
deposit with no proper reason;
of regulations regarding bill acceptance and other settlements or
intentionally delaying to accept bills or instruments or dishonoring a bill in
violation of the regulations;
savings deposit of an individual depositor or the deposite of an institutional
depositor; and
violation of the provisions of this Law.
Bank of China may order the commercial bank to make corrections, confiscate
the illegitimate gains if there is any, and mete out a fine ranging from one
to five times the amount of the illegitimate gain; or, if there is no
illegitimate gains, mete out a fine ranging from l00,000 yuan to 500,000 yuan;
if the case is particularly serious or the offender fails to make correctioan
within the specified time, the People's Bank of China may order it to suspend
business and make rectification and consolidation, or revoke its banking
permit; and if the case constitutes a crime, the commercial bank shall be
investigated for criminal responsibilities:
official approval;
dealing in foreign exchanges without official approval;
making investment in real estate not for its own use;
the country;
against a collateral on more favorable conditions than to other borrowers of
similar loans;
conceal important facts;
Bank of China;
one of the situations listed below occurs, the People's Bank of China may
order the commercial bank to make corrections, confiscate the illegitimate
gains if there is any, and mete out a fine ranging from one to three times the
amount of the illegitimate gain; or, if there is no illegitimate gains, mete
out a fine ranging from 50,000 yuan to 300,000 yuan:
the stipulations of the People's Bank of China;
ratio between deposit and credit, the liquidity ratio, the credit ratio of a
single borrower, and other rules regarding asset and liability ratio mangement
stipulated by the People's Bank of China;
to extend loans on fixed assets;
interest rates or by other improper means in violation of regulations.
73, 74 and 75 of this Law, the person in charge with direct responsibility and
other personnel with direct responsibility shall be given disciplinary
punishment; and if the case constitutes a crime, the offender(s) shall be
investigated for criminal responsibilities.
Bank of China may order the commercial bank to make corrections, confiscate
the illegitimate gains if there is any, and mete out a fine ranging from one
to three times the amount of the illegitimate gain; or, if there is no
illegitimate gains, mete out a fine ranging from 50,000 yuan to 300,000 yuan:
without official approval;
an organization.
information to the People's Bank of China according to the relevant
stipulations, or fails to report changes for approval in violation of Article
24 of this Law, the People's Bank of China shall order it to make corrections,
and, if it fails to make corrections in time, mete out a fine ranging from
10,000 yuan to 100,000 yuan.
or illegally receives money deposit from the public or receives money deposit
from the public in disguised form shall be investigated for criminal
responsibilities in accordance with the law and the said bank shall be banned
by the People's Bank of China.
commercial bank shall be investigated for criminal responsibilities in
accordance with the law.
crime shall be investigated for criminal responsibilities in accordance with
the law.
of the convenience provided by his position in the bank, extorts or accepts
bribes, or accepts commissions or other fees under any pretext in violation of
state regulations shall be investigated for criminal responsibilities in
accordance with the law.
cited in the previous paragraph causes a loss, the offender shall assume all
or part of the reaponsibility for compensation.
the convenience of the position in the bank commits embezzlement, or
misappropriation or unlawfully possesses the fund of the bank or a client
shall be investigated for criminal responsibilities in accordance with the law
if the case constitutes a crime, or be given disciplinary punishment if it
does not constitute a crime.
bank on accourat of his dereliction of duty shall be given disciplinary
punishment; and if the case constitutes a crime, shall be investigated for
criminal responsibilities in accordance with the law.
loan to or providing a guarantee to a relative or friend in violation of
regulations shall assume all or part of the responsibility for compensation.
commercial secrets which come into his or her possession during his or her
service in the bank shall be given disciplinary punishment and, if the case
constitutes a crime, shall be investigated for criminal responsibilities in
accordance with the law.
extend a loan or provide guarantee on a loan, the person in charge directly
responsible and other personnel directly responsible for the incident shall be
given disciplinary punishment, and, if a loss is incurred, shall be held
responsible for compensation for all or part of the loss.
of any organization or individual for a loan or guarantee shall be given
disciplinary punishment and, if a loss is incurred, shall be held responsible
for appropriate compensation.
penalty meted out by the People's Bank of China, they may bring a suit to the
People's Court in accordance with the Administrative Procedure Law of the
People's Republic of China.
Chapter IX Supplementary Provisions
approval in pursuance of the stipulations by the State Council prior to the
promulgation of this Law may not undergo formalities for examination and
approval again.
regarding banks of foreign capital, Chinese-foreign joint banks and branches
of banks of foreign countries under jurisdiction of the provisions of this
Law, those special stipulations shall apply.
and rural credit cooperatives in their deposit, loan and settlement businesses.
postal deposit and remittance business of postal enterprises.
URL: http://www.asianlii.org/cn/legis/cen/laws/cbl166