Laws of the People's Republic of China

Circular of the People's Bank of China concerning the Related Matters on the Adjustment of the Inter-Bank Lending Term for Deposit Financial Institutions

Yin Fa [2006] No.322

Shanghai Head Office, each branch, business management department, central sub-branch of provincial capital cities of the People's Bank of China; the National Inter-Bank Lending Center; each exclusively state-owned commercial bank and joint stock commercial bank:

The People's Bank of China decided to adjust the longest borrowing term for the deposit financial institutions engaging in inter-bank lending business as of October 8, 2006. The related matters are hereby notified as follows:

1.

This adjustment shall be applicable to the financial institutions established within the territory of the People's Republic of China and absorb the general public deposits, such as the commercial banks, urban credit cooperatives and rural credit cooperatives, etc.

2.

The longest borrowing term for the deposit financial institutions shall be extended to 1 year, while the longest borrowing term of the counterparty stipulated by the people's bank may not be shorter than the lending term

3.

The National Inter-Bank Funding Center shall do well in preparing the related technologies.

4.

Each branch, business management department and central sub-branch of provincial capital cities of the People's Bank of China shall forward the present Circular to the urban commercial banks, rural commercial banks, urban credit cooperatives and rural cooperatives within their respective jurisdictions.

The People's Bank of China

September 11, 2006