Laws of the People's Republic of China

The People's Bank of China

Notice of the People's Bank of China on Printing and Issuing Interim Provisions on the Qualifications of Middle-ranking and Senior Managerial Personnel Working in Financial Institutions with Foreign Capitals

Yin Fa [1997] No. 197

The sub-banks of the People's Bank of China in Beijing, Shanghai, Tianjin, Chongqing, Zhejiang, Heilongjiang, Sichuan, Guangdong, Liaoning, Anhui, Fujian, Guangxi, Hainan, Hubei, Jiangsu, Yunnan, Shenzhen, Ningbo, Xiamen, Qingdao, Zhuhai, Dalian, Shantou, Suzhou, Nantong, Quanzhou, etc:

Interim Provisions on the Qualifications of Middle-ranking and Senior Managerial Personnel Working in Financial Institutions with Foreign Capitals are hereby printing and issuing and please carry out. If having any question in the process of implement, please report to the General Bank in time.

The People's Bank of China

May 15, 1997

Interim Provisions on the Qualifications of Middle-ranking and Senior Managerial Personnel Working in Financial Institutions with Foreign Capitals

Article 1

These Provisions are formulated in accordance with the Regulations of the People's Republic of China for the Administration of Financial Enterprises with Foreign Capitals, and with reference to the Interim Provisions for the Administration of the Qualifications for Senior Managerial Personnel Working in Financial Institutions, for the purpose of strengthening the administration of the middle-ranking and senior managerial personnel working in financial institutions with foreign capitals

Article 2

The financial institutions with foreign capitals refer, for the purpose of these Provisions, to the foreign-capital and Chinese-foreign equity joint financial institutions of different categories operating within the territory of the People's Republic of China, the establishment of which was approved by the People's Bank of China in accordance with the procedures prescribed by the relevant laws of the land.

Article 3

The People's Bank of China is responsible for the examination and administration of the qualifications of the middle-ranking and senior managerial personnel working in the financial institutions with foreign capitals.

Article 4

The middle-ranking and senior managerial personnel refer, within the purview of these Provisions, to:

1.

presidents, Vice-presidents, general managers, deputy general managers, governors and deputy governors of wholly foreign-capital financial institutions or Chinese-foreign equity joint financial institutions;

2.

general managers, deputy general managers, governors, deputy governors or governors of the subsidiary banks of foreign financial institutions operating in China;

3.

the chief management personnel such as chief accounting officers, chief actuaries, etc. who are involved in the day-to-day management of their financial institutions;

4.

the general representatives, chief representatives, and residents of the representative offices of foreign financial institutions.

Article 5

The middle-ranking and senior managerial personnel must abide by the laws and regulations of the People's Republic of China, are equipped with an educational background in economics and finance and other related subjects at or above the junior college level, conversant with the rules and regulations of China for financial administration, capable of business management and of sound personal character and with clean personal records.

Article 6

In addition to the requirements laid down in Article 5 , the position of a middle-ranking or senior manager in a financial institution with foreign capitals also requires the candidate to meet the following conditions:

1.

To qualify for the position of chairman, vice-chairman, general manager, governor of foreign-capital or Chinese-foreign equity joint financial institutions with corporate person status or general manager, governor of the subsidiaries in China of foreign financial institutions, the candidate must have a work experience of over 10 years in the financial field or over 15 years of work experience in the related economic fields, and concurrently have the experience of over 5 years, working as a departmental manager of a bank subsidiary or a post equivalent to that or above;

2.

To qualify for the position of a deputy general manager, deputy governor, governor of a bank subsidiary, chief accounting officer and chief actuarial of financial institutions with foreign capitals, the candidate must have a work experience of over 5 years in the financial field and over 3 years working as departmental manager of a bank subsidiary or a position equivalent to or above that post, additionally a candidate for the position of a chief accounting officer or chief actuarial must have acquired the relevant credentials.

3.

To qualify for the position of a general representative of the representative office in China of a foreign financial institution, the candidate must have work experience in the financial sector for more than 10 years and has been in charge of operations in China for more than 2 out of the recent 5 years;

4.

To qualify for the position of chief representative of the representative office in China of a foreign financial institution, the candidate must have the work experience in the financial sector or related fields for more than 5 years.;

5.

To qualify for the position of representative of the representative office in China of a foreign financial institution, the candidate must have the work experience in the financial sector or related fields for more than 3 years;

6.

To qualify for the position of a senior manager of a financial institution with foreign capitals, the candidate must be between the ages of 30 and 65;

7.

The tenure for a senior manager of a financial institution with foreign capitals shall be no shorter than 2 years.

Article 7

Changes in the middle-ranking and senior managerial personnel of a financial institution with foreign capitals in China shall be subject to the examination and approval by the People's Bank of China.

Article 8

The People's Bank of China adopts the system of tiered examination and appraisal of the qualifications of middle-ranking and senior managerial personnel working in financial institutions with foreign capitals in China.

1.

The head office of the People's Bank of China is responsible for the examination and identification of the qualifications of the following personnel:

1)

Chairmen, vice-chairmen, general managers and governors of wholly foreign-capital financial institutions and Chinese-foreign equity joint financial institutions;

2)

Governors, general managers of the subsidiaries in China of foreign financial institutions;

3)

General representatives and chief representatives of the representative offices in China of financial institutions with foreign capitals;

The qualification documents and information shall be first examined and confirmed as appropriately prepared by the local branch of the People's Bank of China before it are forward to the head office of the People's Bank of China for examination and approval.

2.

The local branches of the People's Bank of China are responsible for the examination and endorsement of the qualifications of the following personnel:

1)

Deputy general managers, deputy governors and governors of branches of financial institutions with foreign capitals;

2)

The important managerial personnel such as chief accounting officers and chief actuaries that participate in the day-to-day management of financial institutions with foreign capitals;

3)

The representatives of the representative offices of foreign financial institutions;

The local branches of the People's Bank of China shall, upon the examination and approval, submit the relevant documentation and information to the head office of the People's Bank of China for the record.

Article 9

The following information shall, in addition to the documentation and information that shall be provided in accordance with the pertinent rules and regulations, be provided in writing for the middle-ranking and senior managerial personnel designate of financial institutions with foreign capitals:

1.

Certificates of education, identity cards or photocopies of the passports;

2.

Photocopies of certificates of qualifications for accountants and actuaries.

All the required documentation listed above shall be authentic and reliable. The People's Bank of China shall mete out penalties according to the pertinent rules and regulations to those institutions or individuals that have provided false information according to the pertinent rules and regulations.

Article 10

The repudiation of qualifications for such posts shall be governed with reference to the Interim Provisions for the Administration of the Credentials for Senior Managerial Positions in Financial Institutions.

Article 11

These Provisions shall prevail where the provisions of other Rules come into conflict with these Provisions concerning the qualifications for positions of middle- ranking and senior managerial personnel working in financial institutions with foreign capitals.

Article 12

These Provisions shall be interpreted by the People's Bank of China.

Article 13

These Provisions shall enter into force as of the date of promulgation.