People's Republic Of China Banking Supervision Law

Original Language Title: 中华人民共和国银行业监督管理法

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    Xinhuanet, Beijing, December 27-People's Republic of China banking supervision law of December 27, 2003 list of Deputies adopted at the sixth meeting of the Standing Committee chapter I General provisions chapter II supervision and administration chapter III supervision and administration fourth fifth sixth chapter Chapter legal liability of supervision and management measures annex chapter I General provisions article in order to better banking
    Regulatory and normative regulatory acts, prevent and solve the banking risk, protect the legitimate rights and interests of depositors and other clients, promote the healthy development of the industry, this law is enacted.
    Second banking regulatory agency of the State Council is responsible for the national banking institutions and their supervision and management of operational activities.
    Banking institutions in this law refers to in the People's Republic of China China to set up commercial banks, urban credit cooperatives, rural credit cooperatives and other financial institutions that take deposits from the public as well as policy banks.
    People's Republic of China established in the territory of financial asset management companies, trust and investment companies, financial companies, financial leasing companies, as well as by the banking regulatory agency of the State Council approved the establishment of the supervision of other financial institutions, apply the provisions of this law on supervision and management of banking institutions.
    Relevant provisions of the banking regulatory agency of the State Council in accordance with this law, and subject to his approval of overseas financial institutions as well as outside of financial institutions in the preceding two paragraphs exercise supervision over and management of operational activities.
    Article banking regulatory aim of increasing legal, stable, maintaining public confidence in the banking sector.
    Banking supervision should protect fair competition in the banking sector, improve the ability of competition in the banking sector.
    Fourth banking regulatory body to supervise banks, should follow the law, the principles of openness, fairness and efficiency. Article fifth banking supervision working with regulatory agencies and their staff to perform their duties of supervision and administration, are protected by law.
    Local governments and Government departments at all levels, public organization or individual may interfere.
    Article sixth banking regulatory agency of the State Council and the people's Bank of China, other financial regulatory authority under the State Council to establish regulatory mechanisms for information sharing.
    
    Article seventh banking regulatory agency of the State Council and other State or local banking regulatory agencies to develop regulatory cooperation mechanisms, cross-border supervision and management. Chapter II supervision and administration bodies article eighth state banking regulatory agencies perform their duties according to the need to establish agencies.
    Agency of the banking regulatory agency of the State Council exercises unified leadership and management.
    Agency of the banking regulatory agency of the State Council of the mandate of the banking regulatory agency of the State Council, carry out regulatory duties.
    Nineth banking regulatory agency engaged in supervision and management of staff should be commensurate with his professional knowledge and work experience.
    Tenth banking regulatory agency staff should be devoted to their duties, in accordance with the law, impartiality and integrity, must not use bribes to obtain an unfair advantage, not adjunct positions in the financial institutions and other enterprises.
    11th banking regulatory agency staff members, according to law on guarding State secrets, and has responsibility for the supervision and management of banking institutions and parties to keep a secret.
    Banking regulatory agency of the State Council with other countries or the banking regulatory agency in the area of exchange of regulatory information, confidential information should be arranged.
    12th banking regulatory body under the State Council shall publicize the regulatory procedures, establish a supervision responsibility system and internal control system.
    13th at the disposal of the banking regulatory banking financial institutions risk, investigate regulatory activities related to illegal, local governments, related departments at all levels shall cooperate and assist.
    
    Article 14th auditing and supervisory organs of the State Council shall be in accordance with the law to monitor the activities of the banking regulatory agency of the State Council.
    Chapter III supervision and Administration section 15th banking regulatory agency of the State Council in accordance with the laws, administrative rules and regulations to develop and publish on banking institutions and their supervision and management of operational activities regulations, rules.
    16th banking regulatory agency of the State Council in accordance with the laws, administrative regulations, conditions and procedures, reviews approved the establishment, change or termination of banking institutions and the scope of business.
    17th an application for establishing a banking institution, or change of banking institutions to hold capital total amount or total shares more than reach the required percentage of shareholders, of the banking regulatory agency of the State Council shall set forth the shareholder funds, financial condition, capital and credit review. Article 18th business operations of banking institutions, shall in accordance with the provisions of the banking regulatory agency of the State Council for examination and approval or for the record.
    Need for approval or for the record business, by the banking regulatory agency of the State Council in accordance with the laws and administrative regulations formulated and published.
    19th without the approval of the banking regulatory agency of the State Council, no unit or individual may establish banking institutions or engage in business activities of banking institutions. 20th of the banking regulatory agency of the State Council on banking institutions of Directors and senior management staff of vocational qualification management.
    Specific measures shall be formulated by the banking regulatory agency of the State Council.
    21st rule of prudent management of banking institutions, by laws, administrative regulations, or by the banking regulatory agency of the State Council in accordance with the laws and administrative regulations.
    The prudential rules laid down in the preceding paragraph, including risk management, internal controls, capital adequacy, asset quality, loss reserve, concentration of risk, related party transactions, asset liquidity, and so on.
    Banking institutions should strictly comply with the prudential rules. 22nd article state banking supervision management institutions should in provides of term, on following application matters made approved or not approved of written decided; decided not approved of, should description reason: (a) banking financial institutions of established, since received application file of day up six months within; (ii) banking financial institutions of change, and terminated, and business range and increased business range within of business varieties, since received application file of day up three months within; (three) review Director and senior management personnel of served qualification,
    From the date of receipt of the application file in the 30th.
    23rd banking regulatory agency should be operational activities of banking institutions and the risk of off-site supervision, banking financial institution supervision and management information system, analysis, evaluate the risks of banking institutions.
    24th banking regulatory agency should be operational activities of banking institutions conducting on-site inspections and risk status.
    Banking regulatory body under the State Council shall make an on-site inspection procedures, regulate the on-site inspection.
    25th banking regulatory agency of the State Council shall exercise consolidated supervision over banking institutions management.
    26th article of the banking regulatory agency of the State Council of the people's Bank of China checked recommendations of the banking institutions, shall from the date of receipt of the recommendations in the 30th to reply.
    27th banking regulatory body under the State Council shall establish supervision and management of banking institutions rating system and risk early warning mechanism, according to the banking financial institutions ratings and risk profile, determine its on-site inspection frequency, scope and the need for other measures.
    28th banking regulatory body under the State Council shall establish a banking emergency found, reports the post responsibility system.
    Banking regulatory agency found that could trigger a systemic banking risk and seriously affected the social stability of emergencies should be reported immediately to the head of the banking regulatory agency of the State Council; head of the banking regulatory agency of the State Council deems it necessary to report to the State Council, shall immediately report to the State Council, and inform the financial Department of the people's Bank of China, the State Council and other relevant departments.
    Article 29th banking regulatory body under the State Council shall, jointly with the people's Bank of China and the State Council finance departments, and other relevant departments to establish a banking emergency disposal system, development of banking emergencies preparedness, explicitly dispose of institutions and personnel and their responsibilities, measures and procedures, timely and effective disposition of banking emergencies.
    30th state banking regulatory agencies responsible for the preparation of national banking institutions statistics, reports, and be published in accordance with the relevant provisions of the State.
    31st state banking regulatory agencies on the banking activities of the self-regulatory organization for guidance and supervision.
    Regulation of the banking industry self-regulatory organization shall be reported to the banking regulatory agency of the State Council for the record.
    
    32nd banking regulatory body under the State Council can carry out activities of international exchange and cooperation related to banking supervision.
    The fourth chapter 33rd banking regulatory agencies on the basis of regulatory measures required to perform duties, and the right to submit banking institutions in accordance with the provisions the balance sheets, income statements and other accounting, statistical reports, management information, and audit report of certified public accountant issued by the.
    34th article banking supervision management institutions according to carefully regulatory of requirements, can take following measures for site check: (a) into banking financial institutions for check; (ii) asked banking financial institutions of staff, requirements its on about check matters made description; (three) check out, and copy banking financial institutions and check matters about of file, and information, on May was transfer, and hidden or damage of file, and information be sealed; (D) check the banks computer systems for managing business data.

    An on-site inspection shall be subject to approval of the banking regulatory agency heads.
    On-site inspection, inspectors shall be at least two people, and shall provide proof of legal documents and letters; less than two inspectors or without legal documents and letters, banking institutions have the right to refuse the inspection.
    35th needs of banking regulatory agencies to carry out their duties, directors and senior managers of financial institutions and banking supervision and management talks required banking directors and senior managerial personnel of banking institutions operational activities for a description of the significant matters and risk management.
    36th banking regulatory authority shall order the banking institutions in accordance with the provisions, truthfully to the public disclosure of financial and accounting reports, risk management, Board of Directors and senior management changes and other matters of importance, and so on.
    37th article banking financial institutions violation carefully business rules of, state banking supervision management institutions or its province level sent institutions should ordered deadline corrected; late not corrected of, or its behavior serious endanger the banking financial institutions of sound run, and damage deposits people and other customer lawful rights and interests of of, by State banking supervision management institutions or its province level sent institutions head approved, can difference case, take following measures: (a) ordered suspended part business, and stop approved opened new business;
    (B) restrict the distribution of dividends and other income (iii) restrict the transfer of assets (iv) ordering the controlling shareholders to transfer their stock right or restricting its shareholders rights (v) ordered to change directors, senior executives or restrict their rights; (f) to stop the approval for the creation of a branch. Banking institutions after rectification shall be made to the State banking regulatory agency or agencies reporting at the provincial level.
    Banking regulatory agency of the State Council or provincial agency after acceptance, compliance with the prudential rules, should be lifted from the date of acceptance of the completion of 3rd to take the measures specified in the preceding paragraph.
    Article 38th credit crisis in banking institutions has been or may be, seriously affecting the legal rights of depositors and other clients, banking regulatory body under the State Council may, in accordance with the banking institutions to implement it over or promote restructuring, takeovers and restructuring in accordance with relevant laws and regulations of the State Council.
    39th banking financial institutions operate illegally, such as poor management, no revocation would seriously jeopardize the financial order, injurious to the public interest, banking regulatory body under the State Council has the right to be withdrawn.
    40th takeover, restructuring or cancellation of banking institutions, banking regulatory body under the State Council has the right to require the banking institution's directors, senior managers and other staff perform their duties according to the requirements of the banking regulatory agency of the State Council.
    In took over, and institutions restructuring or revoked liquidation during, by State banking supervision management institutions head approved, on directly is responsible for of Director, and senior management personnel and other directly responsibility personnel, can take following measures: (a) directly is responsible for of Director, and senior management personnel and other directly responsibility personnel exit will on national interests caused major loss of, notification exit management organ law block its exit; (ii) application judicial organ ban its transfer, and transfer property or on its property set other right.
    
    41st by the State banking regulatory agency approval of the agency head or the provincial level, banking regulatory agencies to query suspected of illegal banking banking institutions and their staff, as well as associated the actor's account; on suspicion of transferring or conceal illicit funds, approved by the banking regulatory agency heads may apply for judicial authorities to freeze.
    Fifth chapter legal responsibility 42nd article banking supervision management institutions engaged in supervision management work of personnel has following case one of of, law give administrative sanctions; constitute crime of, law held criminal: (a) violation provides review approved banking financial institutions of established, and change, and terminated, and business range and business range within of business varieties of; (ii) violation provides on banking financial institutions for site check of; (three) not in accordance with this method 28th article provides report burst event of;
    (Iv) violation query account or apply for the freezing of funds, and (v) in violation of regulations on the banking institutions to take measures or punishment; (vi) other acts of abuse their powers, neglect their duties.
    Banking regulatory agency personnel involved in the supervision and administration of corruption, reveal State secrets or confidential the business secrets constitute a crime, criminal responsibility shall be investigated according to law; do not constitute a crime, administrative sanctions according to law.
    43rd article unauthorized established banking financial institutions or illegal engaged in banking financial institutions of business activities of, by State banking supervision management institutions be banned; constitute crime of, law held criminal; is not constitute crime of, by State banking supervision management institutions confiscated illegal proceeds, illegal proceeds 500,000 yuan above of, and at illegal proceeds 1 time times above five times times following fine; no illegal proceeds or illegal proceeds insufficient 500,000 yuan of, at 500,000 yuan above 2 million Yuan following fine.
    44th article banking financial institutions has following case one of, by State banking supervision management institutions ordered corrected, has illegal proceeds of, confiscated illegal proceeds, illegal proceeds 500,000 yuan above of, and at illegal proceeds 1 time times above five times times following fine; no illegal proceeds or illegal proceeds insufficient 500,000 yuan of, at 500,000 yuan above 2 million Yuan following fine; plot special serious or late not corrected of, can ordered closed reorganization or revoked its business license; constitute crime of, law held criminal:
    (A) without approval to set up branches, (ii) unauthorized alteration and termination; (c) the violation with unauthorized or not filing operational activities; (iv) in violation of regulations raising or lowering deposit rates and lending rates.
    45th article banking financial institutions has following case one of, by State banking supervision management institutions ordered corrected, and at 200,000 yuan above 500,000 yuan following fine; plot special serious or late not corrected of, can ordered closed reorganization or revoked its business license; constitute crime of, law held criminal: (a) without served qualification review appointed Director, and senior management personnel of; (ii) refused to or hinder non-site regulatory or site check of;
    (C) provide false or concealing important facts of statements, reports and other documents and materials, and (iv) disclosure of information not in accordance with the provisions of the (v) serious violations of the prudential rules (vi) refuse implementation of the measures provided for in this law 37th.
    46th banking institutions in accordance with the provisions provided statements, reports and other documents and materials, by the banking regulatory agency ordered corrective action and fails to correct it, fines of between 100,000 yuan and 300,000 yuan. 47th article banking financial institutions violation legal, and administrative regulations and national about banking supervision management provides of, banking supervision management institutions except in accordance with this method 43rd article to 46th article provides punishment outside, also can difference different case, take following measures: (a) ordered banking financial institutions on directly is responsible for of Director, and senior management personnel and other directly responsibility personnel give disciplinary; (ii) banking financial institutions of behavior is not constitute crime of, on directly is responsible for of Director, and
    
    Senior managers and other personnel directly responsible for warning, fines of between 50,000 yuan and 500,000 yuan (iii) cancel directly responsible for the directors and senior management must term life qualifications, prohibition is directly responsible for the directors and senior management staff and other persons directly responsible for a certain period until a lifetime engaged in banking.
    Sixth chapter supplementary articles article 48th in the People's Republic of China established policy banks, supervision and management of financial assets management companies, otherwise stipulated by laws, administrative regulations, in accordance with its provisions.
    49th People's Republic of China established within foreign banking institutions, Sino-foreign joint venture banks and financial institutions, supervision and management of branches of foreign banking institutions, otherwise stipulated by laws, administrative regulations, in accordance with its provisions. 50th article this law shall enter into force on February 1, 2004. (End)

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