Chapter I General provisions article in accordance with the People's Republic of China Banking Regulatory Act and the People's Republic of China on commercial banks and the People's Republic of China regulations on the management of foreign banks (hereinafter the regulations), these rules are formulated.

Referred to in article II of the regulations refers to the China Banking Regulatory Commission, the banking regulatory authority under the State Council, the alleged banking regulatory body means the CBRC and its local agencies.

Second chapter established and registration third article Ordinance and this rules by said carefully sex conditions, at least including following content: (a) has good of industry reputation and social image; (ii) has good of continued business performance, assets quality good; (three) management layer has good of professional quality and management capacity; (four) has sound of risk management system, can effective control various risk; (five) has sound of internal control system and effective of management information system;

(Six) according to carefully accounting principles prepared financial accounting report, and accountants firm on financial accounting report holding no retained views; (seven) no major illegal violations records and for internal management problem led to of major case; (eight) has effective of human resources management system, has high quality of professional talent; (nine) has on China territory institutions activities for management, and support of experience and capacity; (ten) has effective of capital constraints and capital added mechanism; (11) has sound of company governance structure;

(12) the laws, administrative regulations and other prudent requirements as specified by the CBRC, China.

Subsection (I), (j) and (11) apply only to foreign-owned banks and their shareholders and foreign banks, Sino-foreign joint venture banks and shareholders.

Fourth article Ordinance 11th article by said main shareholders, is refers to holds intends set Sino-foreign joint venture bank capital total or shares total 50% above, or not holds capital total or shares total 50% above but has following case one of of commercial banks: (a) holds intends set Sino-foreign joint venture Bank half above of voting; (ii) right to control intends set Sino-foreign joint venture Bank of financial and business policy; (three) right to appointment intends set Sino-foreign joint venture Bank Board or similar power institutions of most members;

(D) the proposed Sino-foreign joint venture Bank's Board of directors or similar authority over half of voting.

Sino-foreign joint venture Bank's main shareholders are proposed should be proposed Chinese-foreign joint venture Bank into its scope and table.

Fifth article has following case one of of, shall not as intends set foreign owned bank, and Sino-foreign joint venture Bank of shareholders: (a) company governance structure and mechanism exists obviously defects; (ii) equity relationship complex or transparency low; (three) associated Enterprise many, associated trading frequently or exception; (four) core business not highlight or business range involved industry too much; (five) cash flow fluctuations by economic environment effect larger; (six) assets liabilities rate, and financial lever rate above industry average level;

(G) the generation of foreign-funded banks, Sino-foreign joint venture bank owned by others and (VIII) other circumstances that have a significant adverse impact on the proposed Bank.

The sixth article of the Ordinance the tenth to 12th set up an application referred to in article 1 prior year refers to the end of the fiscal year ending on the date of application.

Seventh branch of a foreign bank in China added, in addition to having the regulations the Nineth, 12th conditions provided for in article, which has set up a branch in the territory of China shall meet the prudential requirements under the China Banking Regulatory Commission.

Opening of representative office in China of foreign banks, in addition to the regulations stipulated in the Nineth of conditions, has set up representative offices in China by its should be no major violation records.

The eighth foreign-funded banks and Sino-foreign joint venture Bank to establish a branch shall satisfy the prudential requirements under the China Banking Regulatory Commission.

Nineth established foreign-funded banking institutions, the applicant shall, from the date of receipt of the notice of approval to proposed in the 15th place opened to receive the application form of the CBRC, China, started work.

Opening fails to receive application forms, approved within 1 year from the date of its construction, the China Banking Regulatory Commission and its agencies not to entertain the applicants in the same city in China to set up business on the application. Tenth article established foreign bank business sex institutions, applicants in preparation period within should completed following work: (a) established sound company governance structure, and will company governance structure description submitted location China silver prison will sent institutions (only limited foreign owned bank, and Sino-foreign joint venture Bank); (ii) established internal control system, including internal organization structure, and authorized award letter, and credit management, and funds trading, and accounting, and computer information management system of control system and operation,

And will internal control system and operation submitted location China silver prison will sent institutions; (three) equipped with meet business development need of, and appropriate number of and has accept policy regulations and the business knowledge, related training of business personnel, to meet on main business risk effective monitoring, and business grading approval and review, and key post Division and mutual contain, requirements; (four) printed intends foreign using of important business voucher and documents, and will sample submitted location China silver prison will sent institutions;

(E) approved by the relevant government departments are equipped with safety facilities, and copies of relevant certificates submitted to the local agency of the China Banking Regulatory Commission; (vi) should be employed in the territory of China shall be a duly qualified firm of public accountants in their internal control systems, accounting systems, computer systems, the pre-commissioning audit and audit report submitted to the local agency of the China Banking Regulatory Commission. The 11th foreign-funded banking institutions to be established in the pipeline have been completed, head of the preparatory group shall provide the proposed place of acceptance before the Agency of the China Banking Regulatory Commission to set up operations. Where the proposed branch agency of the China Banking Regulatory Commission acceptance should be carried out in the 10th. Acceptance, shall be given to the acceptance of submissions.

Unqualified acceptance, it shall notify the applicant, the applicant may 10th after the date of receipt of the notice of the proposed place of bodies for the reinspection of the CBRC, China.

12th acceptance completed preparatory work, the applicant shall, in accordance with the provisions of administrative permission regulations of foreign banks to the China Banking Regulatory Commission will be opened or where the proposed branch of CBRC submitted application documents.

After the 13th foreign-funded banking institutions permitted to practice, shall, in accordance with the relevant provisions for financial licences. The 14th foreign banking institution shall, within the time limit set by the opening. Fails to open, opening failure of approval documents, opened by authorities cancellation of business license and to recover their financial licenses, and make an announcement.

Since the approval documents within 1 year from the date of expiration, authorities opened the inadmissibility of the applicant in the same cities to set up business on the application. 15th foreign bank agencies prior to the opening date of opening should be in writing submitted to the local agency of the China Banking Regulatory Commission.

Foreign-funded banking institutions before opening at the China Banking Regulatory Commission to be appointed by the national newspapers and location specified by the Agency of the China Banking Regulatory Commission announcement on a local newspaper.

16th foreign bank branches in China by its conversion to wholly foreign-funded Bank funded by the its headquarters alone, shall comply with the Ordinance and these rules, the conditions for the establishment of wholly foreign-owned bank, and in China is long-term sustainable and effective management of the proposed wholly foreign-funded Bank.

17th branch of a foreign bank in China it restructured its headquarters on the separate funding of foreign-owned banks, approved by the China Banking Regulatory Commission, the original branch of a foreign bank operating fund verified by a merge could be transferred to the registered capital of foreign-invested banks, or back to their headquarters.

18th branch of a foreign bank in China it restructured its headquarters on the separate funding of foreign-owned banks, should the proposed wholly foreign-funded Bank start-up period, and go through the registration formalities, the China Banking Regulatory Commission to be appointed by the national newspaper and the Agency of the China Banking Regulatory Commission, where the local newspaper announcement specified.

19th Foreign Bank representative offices shall go through the registration formalities, the China Banking Regulatory Commission to be appointed by the national newspaper and the location specified by the Agency of the China Banking Regulatory Commission announcement on a local newspaper.

Representative Office of a foreign bank approved the establishment of CBRC shall be located within 6 months from the date of moving into a fixed office space, beyond 6 months have not yet moved to fixed work place Office, representative office approval decision invalid. 20th article Foreign Bank representative at moved fixed Office places Hou, should to location China silver prison will sent institutions submitted following information: (a) representative at basic situation registration form; (ii) business registration card copies; (three) internal management system, content including representative at of duties arrangements, and internal division and internal report system,; (four) Office places of rental contract or property proved copies; (five) equipped with Office facilities and rental telecommunications sector data communications line of situation; (six) seal, and

Document paper samples and samples of staff use business cards and (g) other information required by the China Banking Regulatory Commission.

The 21st foreign banking institutions after the merger or Division of registered capital or working capital, scope of business approved by the China Banking Regulatory Commission again. 22nd foreign banking institutions temporarily closed for 3 days more than 6 months of age, shall, after a temporary closure in the 5th report to the local agency of the China Banking Regulatory Commission, the indication of a provisional arrangements during the closure time, reason and go out of business. Provisional closure of the foreign-funded banking institutions, shall be announced outside the business premises, instructions during the temporary closure arrangements.

Agency of the China Banking Regulatory Commission shall, without delay, where foreign banks operating within its jurisdiction to take provisional closure conditions progressively submitted to the CBRC. The 23rd or the expiration of temporary closure led to the temporary closure of elimination, temporarily closed institutions should resume operation. Foreign banks within the business organization shall, after the trade resumed business on 5th report to the local agency of the China Banking Regulatory Commission.

Business premises rebuilt, foreign banking institution shall be submitted to the local agency of the China Banking Regulatory Commission premises lease or purchase copies of the contract, fire protection and security copies of the certificates before they can resume their business.

Extension of provisional closure of the special circumstances so require, shall be in accordance with the provisions of this article 22nd again for.

24th foreign banking institutions have the regulation situations must be listed in the article 27th financial elements contained in the license should be based on the financial regulations concerning license management change. Need verification of foreign banking institutions in China should be legally established in the territory of the capital verification certificate issued by a qualified accounting firm seat of the submitting Agency of the China Banking Regulatory Commission.

Requires acceptance of, foreign banks operating local agency of the China Banking Regulatory Commission acceptance should be carried out.

Foreign-funded banking institutions in China Banking Regulatory Commission or agency of the China Banking Regulatory Commission, where the approval documents to the Administrative Department for industry and Commerce for registration of change and renewal of business licenses. Foreign banking institutions have the 27th article of the regulations (a) to (c) one of the circumstances listed, should be the China Banking Regulatory Commission to be appointed by the national newspaper and the location specified by the Agency of the China Banking Regulatory Commission announcement on a local newspaper.

Notice shall be completed within a business license from the date of the entry into force on 30th.

25th Foreign Bank representative office renamed changes such as, alteration of office space, should change after registration at the location specified by the Agency of the China Banking Regulatory Commission announcement on a local newspaper.

Chapter III business scope article 26th to the 29th of the paragraph (d), 31st (d) referred to the sale of government bonds, financial bonds, the sale of foreign currency securities other than stocks including but not limited to, the following foreign investment business in China issued by overseas Chinese and foreign government bonds, bonds and financial institutions non-financial institutions in China, China bonds.

27th to the 29th article of the Ordinance (12) and 31st (11) credit and advisory services mentioned in item refers to banking credit information and advisory services relating to the business.

28th foreign bank branches operating in the regulations article 31st foreign exchange business, the trading funds should be not less than 200 million Yuan, or its equivalent in a freely convertible currency.

29th branch of a foreign bank operating the 31st article of the regulation of foreign exchange business and RMB business, the trading funds should be not less than 300 million Yuan, or its equivalent in a freely convertible currency, RMB working capital of which shall be not less than 100 million Yuan, foreign exchange working capital shall be no less than 200 million Yuan RMB equivalent amount in convertible currencies.

Branches of foreign legal-person banks working capital should be commensurate with the scale of business and allocated in place.

30th of the restructuring of foreign bank branches funded by its headquarters alone can inherit the original foreign bank branches of foreign-owned banks have been approved to conduct all of your business.

31st foreign-funded banks, Sino-foreign joint venture banks in the authorization within the approved scope of business its branch operations.

Within the business scope of foreign bank branches allowed to authorize its branch operations. 32nd regulations 34th refers to the foreign banking institutions applying for RMB business for the first time shall satisfy the conditions in (a) refers to the intention to apply for RMB business by foreign banks of commercial agencies open more than 1 year.

Open refers to 1 year from the date of opening foreign-funded banking institutions are allowed to full 1-year up to the date of application.

Has been approved to operate RMB business by foreign banks of commercial application for expanding the scope of RMB business services shall meet the prudential requirements under the China Banking Regulatory Commission, and approved by the China Banking Regulatory Commission, or CBRC home approval.

Foreign Bank business sex institutions application business Yuan business or expanded Yuan business service object range, should according to foreign bank administrative license regulations of provides submitted following application information: (a) applicants Chairman or President (CEO, and General Manager) signed of applications; (ii) feasibility research report; (three) intends business business of internal control system and the operation; (four) China silver prison will requirements of other information.

1 branches of foreign banks have been approved to operate RMB business in accordance with the regulations, the other branch of the foreign bank applying for RMB business, from the 34th article of the regulations referred to in item limit.

1 branches of foreign banks have been approved to operate RMB business, additional branches of the foreign banks can conduct renminbi business during start-up period of preparatory work, the local agency of the China Banking Regulatory Commission after acceptance, can be made at time of opening RMB business applications.

33rd foreign-funded banks, Sino-foreign joint venture banks engaged in RMB business for Chinese residents, in addition to outside the prudential requirements under the China Banking Regulatory Commission, should also conform to the characteristics and needs of business development business outlets. 34th article foreign bank business sex institutions should since received China silver prison will or location silver prison Council approved its business Yuan business or expanded Yuan business service object range of approved file of day up 4 months within completed following preparatory work: (a) equipped with meet business development need of, and appropriate number of business personnel; (ii) printed intends foreign using of important business voucher and documents, and will sample submitted location China silver prison will sent institutions; (three) equipped with by about sector recognized of security prevention facilities,

And will about proved of copies submitted location China silver prison will sent institutions; (four) established sound Yuan business of internal control system and operation, and submitted location China silver prison will sent institutions; (five) foreign bank business sex institutions need increased registered capital or operating funds of, should hired in China territory law established of qualified of Accountants firm inspection funding, and will inspection funding proved submitted location China silver prison will sent institutions.

Foreign-funded banking institutions cannot be completed within 4 months of preparations, China Banking Regulatory Commission, or CBRC, where the original approval decisions void. 35th foreign banking institutions after the completion of preparations for renminbi business, should be submitted to the local agency of the China Banking Regulatory Commission approval, the local agency of the China Banking Regulatory Commission acceptance should be carried out in the 10th. Acceptance, shall be given to the acceptance of submissions.

Unqualified acceptance, 10th foreign-funded banking institutions may receive notices submitted to the local agency of the China Banking Regulatory Commission after reinspection.

Foreign-funded banking institutions by the local agency of the China Banking Regulatory Commission acceptance and issue renminbi business acceptance of submissions, you can conduct renminbi business. 36th foreign-owned banks, Sino-foreign joint venture Bank branch at its head office within the business scope authorized to conduct RMB business.

In front of the business shall, in accordance with the provisions of this rule 34th preparations and the Head Office of the RMB business of authorized books and sending Agency of the China Banking Regulatory Commission, where.

Preparatory work is completed, foreign-owned banks, Sino-foreign joint venture Bank branch shall apply to the local agency of the China Banking Regulatory Commission acceptance after acceptance issued by the local agency of the China Banking Regulatory Commission to operate RMB business letter for business license change, you can conduct renminbi business.

37th business institutions and their branches of foreign banks RMB business or to expand the scope of RMB business service objects, shall be appointed by the China Banking Regulatory Commission national newspaper and agency of the China Banking Regulatory Commission, where the local newspaper announcement specified.

Article 38th business institutions and their branches of foreign banks operating within the scope of new product shall, to carry on that business to the China Banking Regulatory Commission within the 5th report or the local agency of the China Banking Regulatory Commission in writing, including the introduction of new products, risk characteristics, such as internal control systems and procedures.

39th foreign banking institutions may, in accordance with the relevant provisions in the borrowing of RMB business.

The fourth chapter of vocational qualification management 40th foreign bank directors and senior managers, Chief Representative in China Banking Regulatory Commission or approved by the banking regulatory Bureau, where their qualifications cannot perform their duties. 41st article intends any people has following case one of of, shall not served as foreign bank of Director, and senior management personnel and Chief: (a) has deliberately or major fault crime records of; (ii) has violation social morality of bad behavior, caused bad effect of; (three) on had served institutions illegal violations business activities or major loss has personal responsibility or directly led responsibility, plot serious of; (four) served as or had any was took over, and revoked, and Declared bankruptcy or revoked license of institutions of Director or senior management personnel of, but can proved I on had served institutions was took over, and revoked, and declared bankruptcy or revoked license not has personal responsibility of except; (five) for violation ethics, and conduct or work serious dereliction of, caused major loss or bad effect of; (six) directed, and participation by served institutions not tie law regulatory or case investigation of; (seven) was canceled lifelong of Director and senior management personnel served qualification, Or by regulatory institutions or other financial management sector punishment cumulative reached two times above of; (eight) I or spouse has amounts larger of debt and due not reimbursement of, including but not limited to in the foreign bank of late loan; (nine) exists other by any positions and intends any positions has obviously interests conflict, or obviously dispersed its shoe vocational time and energy of case; (ten) not has this approach provides of served qualification conditions, take not due means to get served qualification approved of; (11) legal, and administrative regulations, and

Department regulations shall not hold financial institution directors and senior managers or Chief Representative, (12), China Banking Regulatory Commission found in other circumstances. 42nd article foreign bank following personnel served qualification approved of application, by China silver prison will accepted, and review and decided: China silver prison will directly regulatory of foreign owned bank, and Sino-foreign joint venture Bank Chairman, and President (CEO, and General Manager), and Director, and Deputy Chairman, and Board Secretary, and Deputy President (Deputy General Manager), and President Assistant, and Chief operation officer, and Chief risk control officer, and Chief Financial Officer (Financial Director, and financial head), and Chief Technology Officer (Chief Information Officer), and within trial head, and

Compliance Manager and other management decisions or personnel play an important role in risk control.

Article 43rd foreign banks following the qualification approval application, accepted by the place of proposed banking Board and the trial, the China Banking Regulatory Commission review and decision: non China banking supervision direct supervision of foreign-funded banks, Sino-foreign joint venture Bank Chairman and President (CEO, General Manager).

Home Banking Board shall from the date of acceptance of the 20th within the application data together with comments submitted to the CBRC.

China Banking Regulatory Commission CBRC authorized location accepting, examining and decided to go with opening first appointed foreign-funded banks, Sino-foreign joint venture Bank Chairman and President (CEO, General Manager) the qualification approval application.

44th article foreign bank following personnel served qualification approved of application, by intends served institutions location silver prison Council accepted, and review and decided: (a) non-China silver prison will directly regulatory of foreign owned bank, and Sino-foreign joint venture Bank Director, and Deputy Chairman, and Board Secretary, and Deputy President (Deputy General Manager), and President Assistant, and Chief operation officer, and Chief risk control officer, and Chief Financial Officer (Financial Director, and financial head), and Chief Technology Officer (Chief Information Officer), and within trial head, and collection rules head;

(B) branches of foreign-funded banks, Sino-foreign joint venture Bank branch, President of the branch of a foreign bank (General Manager), Vice President (Vice President), the head of compliance, management, Branch Manager; Chief Representative of a foreign bank, (iii) other management with decision-making power or play an important role in risk control personnel.

The 45th person to be appointed in the territory of China banking institutions served as Director, senior management and the Chief Representative, the China Banking Regulatory Commission or approved by the banking regulatory Bureau located in before their qualifications, can seek to be appointed as necessary who worked as the views of local banking regulatory Bureau.

People worked as local banking regulatory Bureau to be appointed should provide timely feedback.

Article 46th foreign banks after submitting applications for qualification approval information, China Banking Regulatory Commission and banking regulatory Bureau, where you can meet with the person to be appointed to Office talk. 47th direct supervision by the CBRC, China foreign-funded banking institutions, Chairman, Presidents leave for 1 month or more shall be made to the written report of the China Banking Regulatory Commission; other foreign banking institutions, Chairman, President, branch President, management-oriented Branch Manager, Chief Representative of a foreign bank post for 1 month or more, shall report in writing to the local agency of the China Banking Regulatory Commission. Foreign banks at the time of submission of the above-mentioned report, shall assign a person to act in his post of duty time shall not exceed 6 months.

Employment of foreign-funded Bank shall, within 6 months of personnel officially eligible for qualification. 48th article Foreign Bank Director, and senior management personnel and Chief exists following case one of of, China silver prison will and sent institutions can depending on plot weight, canceled its must term until lifelong of served qualification: (a) was law held criminal of; (ii) refused to, and interference, and block or serious effect China silver prison will and sent institutions law regulatory of; (three) for internal management and control system not sound or implementation supervision poor, caused by served institutions major property loss,

Or led to major financial crime case occurred of; (four) for serious illegal violations business, and internal control system not sound or long-term business management poor, caused by served institutions was took over, and merger or was declared bankruptcy of; (five) for long-term business management poor, caused by served institutions serious losses of; (six) on has served of Foreign Bank Director, and senior management personnel, and Chief, China silver prison will and sent institutions found its served Qian has illegal, and violations or other should not be served as by any positions of behavior;

(VII) other circumstances as the China Banking Regulatory Commission will decide.

Supervision and administration of the fifth chapter 49th foreign-funded banking institutions should be set up with its business development of internal control systems and operational procedures, and, before the end of March of each year, internal control system and operational procedures of amendments submitted to the local agency of the China Banking Regulatory Commission.

50th solely foreign-funded banks and Sino-foreign joint venture banks should set up an independent risk management, compliance management and internal audit department.

Branch of a foreign bank shall appoint a special department or personnel in charge of compliance work.

End of the 51st foreign banking institutions after the internal audit shall timely internal audit report submitted to the local agency of the China Banking Regulatory Commission, the local agency of the China Banking Regulatory Commission may adopt appropriate internal audit personnel and foreign banking institutions communicate.

52nd foreign banking institutions loan risk classification system should be established, and credit risk classification criteria and classification criteria provided by the CBRC, China submitted correspondence home agency of the China Banking Regulatory Commission.

53rd regulations 40th referred to provisions of the asset-liability ratio management refers to the People's Republic of China commercial bank law provisions of 39th.

Foreign-funded banks, Sino-foreign joint venture Bank on asset-liability ratio calculation of requirements of the enforcement report index system of banking supervision.

The 54th foreign-funded banks, Sino-foreign joint venture Bank shall establish a related-party transaction management system, related party transactions must comply with the commercial principles, terms and conditions shall not exceed those associated with non-trade conditions.

China Banking Regulatory Commission and its agencies in accordance with the commercial bank related party transactions the related management regulations on related party and connected transactions were found.

The 55th foreign banking institutions should develop policies associated with outsourcing and management systems, including the outsourcing decision-making process, outside of those providing evaluation and management, measures to control banking confidentiality and security of information and contingency plans, and so on.

Foreign banking business before the Agency sign outsourcing agreement shall be reported to the local agency of the China Banking Regulatory Commission outsourcing the main risks and the corresponding risk mitigation measures.

The 56th article of the Ordinance referred to in article 44th foreign bank branches to accrue assets, including foreign currency interest-bearing assets and interest-bearing assets of RMB.

Foreign bank branches in the 30% working capital should be held in more than 6 months (including 6 months) as controller of the exchange of foreign currency time deposits interest-bearing assets; working capital 30% of RMB bonds in Renminbi, or more than 6 months (including 6 months) of the Renminbi Yuan deposits as interest-bearing assets. Branch of a foreign bank fixed deposits interest-bearing assets shall be deposited in the territory of China in the form of solid, has a certain strength of 3 or 3 following Chinese commercial banks.

Branch of a foreign bank may not in the form of bond pledge repurchase the interest-bearing assets, effects or other interest-bearing assets disposal approach.

Branch of a foreign bank shall be respectively in late June and the end of December to the local agency of the China Banking Regulatory Commission reported the existence of interest-bearing assets, including time deposits deposit Bank, amount, term and interest rate, bond amount, form, and expiration date, and so on.

Branches of foreign banks to use interest-bearing assets, interest-bearing assets should change form or time deposits deposit bank within the 5th report to the local agency of the China Banking Regulatory Commission, submit a change of interest-bearing assets written materials, as well as copies of proof of interest-bearing assets after the change.

57th regulations 45th working capital and reserves referred to in article and refer to working capital, undistributed profits and provisions for loan losses, and risk assets are calculated in accordance with the risk-weighted asset requirement table, off-balance sheet risk-weighted assets.

The 45th of the percentage provided for in section, calculated according to the branches of foreign banks in China is found, by quarter-end balance of assessment. 58th article foreign bank branch of liquidity assets including cash, and gold, and in people bank deposits, and store peer, and 1 months within due of split put peer, and 1 months within due of take out peer, and outside joint line between and the subsidiary institutions between of assets party net amount, and 1 months within due of should received interest and the other should collection, and 1 months within due of loan, and 1 months within due of bonds investment, and in both at home and abroad II level market Shang can at any time variable now of other bonds investment, and other 1 months within variable now of assets. These assets shall be deducted is expected to be recovered in part.

Interest-bearing assets excluding liquid assets. Branches of foreign banks current liabilities include deposits, due within 1 month of regular deposits, inter-bank deposit, due within 1 month of the Inter-Bank, due within 1 month of the borrow, interbank transactions abroad and subsidiaries current liabilities net due within 1 months interest payable and other payables and other liabilities due within 1 month.

Freezing of deposits are not included in the current liabilities.

Branches of foreign banks should be according to RMB and foreign currency are calculated and maintained the regulations stipulated in the 46th of liquidity ratio, according to the branches of foreign banks in China a single assessment.

59th article Ordinance 47th article by said territory this foreign currency assets balance, and territory this foreign currency liabilities balance according to following method calculation: territory this foreign currency assets balance = this foreign currency assets total-outside joint line between (assets)-outside subsidiary institutions between (assets)-outside loan-store outside peer-split put outside peer-buy outside returned sale assets-outside investment-other outside assets.

The following investments are not included in foreign investment: buying in China issued overseas by the Chinese Government bonds, bonds of Chinese financial institutions and non-financial bonds in China.

Internally total foreign currency debt and foreign currency liabilities balance =-interbank transfers abroad (liabilities)-outside of subsidiary body dealings (liabilities)-offshore deposits-outside of inter-bank placements outside-the inter-bank-selling foreign repo payments-other foreign liabilities.

47th article of the Ordinance in accordance with the provisions of the foreign bank branch in China merger appraisal.

60th the foreign banking institution shall not be virtual, multiple columns, column less assets, liabilities and owner's equity.

The 61st set up in China 2 above and 2 branches of foreign banks, foreign bank or authorized 1 branch, as specified by the regional headquarters management to co-ordinate operations in China management consolidated financial information as well as all the branches in China and information submitted. Foreign Bank regional headquarters shall designate a management or authorized bank responsible for operational management work in China, and specifies compliance Chief responsible for compliance of operations in China.
62nd foreign banking institutions shall, in accordance with the provisions of China Banking Regulatory Commission, quarterly cross-border by the end of large capital flows and asset transfer submitted to the local agency of the China Banking Regulatory Commission.

63rd foreign-funded banking institutions by rows or the rows into the credit assets shall be transferred to the credit assets in the 5th report to the local agency of the China Banking Regulatory Commission, submitted amount on credit assets, terms, classification and security of written material. 64th article foreign bank branch has following case one of of, should to the branch or management line location China silver prison will sent institutions report: (a) foreign bank branch not distribution profit and this year pure profit and loss of and for negative, and the negative absolute and loan loss prepared yet mention foot part of and over operating funds 30% of, should each quarter late report; (ii) foreign bank branch on all big customer of award letter balance over its operating funds 8 times times of, should each quarter late report,

Big customer is refers to award letter balance over foreign bank branch operating funds 10% of customer, the index according to foreign bank in China territory branch season balance merged calculation; (three) foreign bank branch outside joint line and the subsidiary institutions between of assets party balance over outside joint line and the subsidiary institutions between of liabilities party balance and operating funds of and of, should monthly late report, the index according to foreign bank in China territory branch merged calculation; (four) China silver prison will finds of other case.

65th article China silver prison will and sent institutions on foreign bank business sex institutions take of special regulatory measures including following content: (a) appointment about head for police commandments talk; (ii) ordered deadline on about problem submitted written report; (three) on funds outflow outside take limit sex measures; (four) ordered suspended part business or suspended accepted business new business of application; (five) ordered issued guarantee; (six) on about risk regulatory index proposed special requirements;

(Seven) requirements keep must proportion of by China silver prison will recognized of assets; (eight) ordered deadline added capital or operating funds; (nine) ordered deadline replaced Director or senior management personnel; (ten) suspended accepted additional institutions of application; (11) on profit distribution and profit meeting out outside take limit sex measures; (12) presence special regulatory personnel, on daily business management for supervision Guide; (13) improve about regulatory report of submitted frequency;

(14) other special supervisory measures taken by the China Banking Regulatory Commission.

66th article foreign bank business sex institutions should to location China silver prison will sent institutions timely report following major matters: (a) financial status and business activities appeared major problem; (ii) business strategy of major adjustment; (three) except force majeure reasons outside, foreign bank business sex institutions in statutory holiday yiwai of date suspended business 2nd within, should ahead of 7th to location China silver prison will sent institutions written report; (four) foreign owned bank, and Sino-foreign joint venture Bank of important Board resolution;

(Five) foreign bank branch of head office, and foreign owned bank or Sino-foreign joint venture Bank shareholders of articles, and registered capital and registered address of change; (six) foreign bank branch of head office, and foreign owned bank or Sino-foreign joint venture Bank shareholders of merged, and Division, restructuring matters and Chairman or President (CEO, and General Manager) of change; (seven) foreign bank branch of head office, and foreign owned bank or Sino-foreign joint venture Bank shareholders of financial status and business activities appeared major problem; (VIII) the Head Office of the branch of a foreign bank, wholly foreign-owned bank or Chinese-foreign joint venture Bank shareholders significant cases; (IX) foreign bank branches, Head Office and wholly foreign-owned bank or Chinese-foreign joint venture Bank foreign shareholder's home country or region and other overseas branches from countries or regions financial regulators impose significant regulatory measures; (x) foreign bank branches, Head Office,

Wholly foreign-funded Bank or Chinese-foreign joint venture Bank foreign shareholder countries or significant changes in the financial regulation and the financial regulation system and (11) other matters in the report of the China Banking Regulatory Commission requirements.

67th article Foreign Bank representative at should timely to location China silver prison will sent institutions report its by representative of foreign bank occurred of following major matters: (a) articles, and registered capital or registered address change; (ii) foreign bank of merged, and Division, restructuring matters and Chairman or President (CEO, and General Manager) change; (three) financial status or business activities appeared major problem; (four) occurred major case;

(E) the country or region where financial regulators impose significant regulatory measures (f) other matters of foreign bank operations have a significant impact.

68th non-agency employees in China by foreign banks, in the Agency's work for more than 20th today in 90 days or more than 30th, foreign banks should report to the local agency of the China Banking Regulatory Commission.

69th article foreign owned bank, and Sino-foreign joint venture Bank and in China territory established 2 home and the 2 home above branch of foreign bank, should in each fiscal year end Hou hired in China territory law established of qualified accountants firm on the institutions in China territory all business sex institutions for and table or merged audit, and in fiscal year end Hou 4 months within will audit report and management proposal submitted foreign owned bank, and Sino-foreign joint venture Bank head office or management line location China silver prison will sent institutions.

Branches of foreign banks should be employed after the end of each fiscal year within the territory of China shall be a qualified accounting firm's audit, and within 4 months after the end of the fiscal year the audit report and management letter submitted to the local agency of the China Banking Regulatory Commission.

70th foreign banks operating agencies within the territory of China shall be a qualified accounting firm annually or other project audits 1 month ago, and their participation in the audit of the accounting firms CPA should be basic information submitting local agency of the China Banking Regulatory Commission.

71st foreign-funded banks, Sino-foreign joint venture Bank's annual audits should include the following: capital adequacy, asset quality, corporate governance, internal control, profitability, liquidity and market risk management, and so on.

Annual audit of the branch of a foreign bank shall include the following: financial reporting, risk management, operational control, compliance management, and asset quality, and so on.

72nd the CBRC and its local agencies may, when necessary to specify accounting firm on foreign banking institutions operating conditions, financial status, risk status, internal control system and the implementation of audits.

73rd CBRC and its local agencies can ask foreign-funded banking institutions replace the expertise and independence of CPA firm does not meet regulatory requirements.

74th solely foreign-funded banks, Sino-foreign joint venture Bank shall, within 6 months after the end of the fiscal year the headquarters seat of the China Banking Regulatory Commission agency submitted to the foreign-funded banks and their shareholders, annual reports of Sino-foreign joint venture banks and their shareholders.

Foreign bank branches and representative offices of foreign banks should be in the place where its head office within 6 months of the end of the fiscal year submitted its head office of the CBRC, China's annual report.

75th Foreign Bank representative office, shall, before the end of February of each year in accordance with the form required by the CBRC, China submitted to the local agency of the China Banking Regulatory Commission on the annual work report and work plan of the year.

76th foreign banks representative office shall have a separate office space, office facilities and specialized staff.

77th Foreign Bank representative office shall have a reasonable number of staff, staff positions should be consistent with Office duties.

The 78th Foreign Bank representative office shall set up account books, truly reflect the financial position, its costs and expenses should be in accordance with Office duties.

Foreign Bank representative offices are not allowed to use other accounts of the enterprise, organization or individual.

79th Representative Office of a foreign bank shall not, in its computer systems used in business processing system that is incompatible with Office job. 80th article of the rules requires submitting information, in addition to an annual report, where written in foreign language, shall be accompanied by a Chinese translation. Foreign banking institutions ' internal control systems, business rules, business document samples should be accompanied by a Chinese translation; other business archives and archives related files such as regulators considered necessary, and shall be accompanied by a Chinese translation.

Under special circumstances, the China Banking Regulatory Commission and its agencies could request the relevant Chinese translation by the branch of a foreign bank head office, wholly foreign-funded Bank or Chinese-foreign joint venture Bank's foreign shareholders are national or regional institutions recognized by the notary, and the Chinese embassies or consulates in the country.

Sixth chapter terminated and liquidation 81st article Ordinance 58th article by said itself terminated including following case: (a) foreign owned bank, and Sino-foreign joint venture Bank articles provides of business term expires or other dissolved causes appeared of; (ii) foreign owned bank, and Sino-foreign joint venture Bank shareholders will decided dissolved of; (three) foreign owned bank, and Sino-foreign joint venture Bank for merged or Division need dissolved of; (four) foreign bank, and foreign owned bank, and Sino-foreign joint venture Bank close in China territory branch of.

82nd article from the China Banking Regulatory Commission approved solely foreign-funded banks, Sino-foreign joint venture Bank is dissolved or foreign banks, foreign-funded banks, Sino-foreign joint venture Bank's decision to close the branch in China from the date of entry into force, been dissolved, closed with the approval bodies shall immediately cease business activities, return a financial license, and set up a group in the 15th. 83rd liquidation group members including the Governor (General Manager), accounting manager, CPA, as well as other personnel designated by the China Banking Regulatory Commission. Foreign-funded banks, Sino-foreign joint venture bank liquidation group should also include representatives of the shareholders and Chairman of the Board.

Members of the liquidating Committee shall be reported to the local agency of the China Banking Regulatory Commission agreed.

84th liquidation group shall notify the administration of industry and commerce, taxation, labor and social security departments and other departments concerned.

The 85th foreign-funded banks and Sino-foreign joint venture Bank dissolved itself or the foreign-funded banks and Sino-foreign joint venture banks and foreign bank closed its branch in China involving the liquidation in accordance with the People's Republic of China company law provisions.

The 86th was disbanded or close business institutions and their branches of foreign banks agencies responsible for oversight of the CBRC, China, where dissolution and liquidation procedures, and progressive report on important matters and the liquidation to the China Banking Regulatory Commission.

87th liquidation group should be within 30th since the establishment of the employed in the territory of China shall be a qualified accounting firm's audit, hire location within 60 days from the date of institution of the CBRC, China submitted to the audit report.

88th dismissal or closing liquidation process involves examination and approval of foreign exchange matters, should be approved by the State administration of foreign exchange and its branches.

The 89th in the process of liquidating debts shall be payment of liquidation expenses, wages and labor insurance premium after, first pay the principal and interest of the individual depositors.

90th liquidation group shall, before the 10th of each month to the local agency of the China Banking Regulatory Commission to submit relevant debt settlement, disposition of assets, loan recovery, account of the report.

91st were clearing all debts after the liquidation group applications for extraction of interest-bearing assets, it should be to the local agency of the China Banking Regulatory Commission shall submit the following application materials, the local agency of the China Banking Regulatory Commission for approval: (a) the application signed by the head of the liquidation, (ii) report on the liquidation, and (iii) other information required by the China Banking Regulatory Commission. 92nd after the close of liquidation, the liquidation team shall make a liquidation report, submitted to the local agency of the China Banking Regulatory Commission confirmed and submitted to the industrial and commercial administration authorities apply for cancellation of the registration, the China Banking Regulatory Commission to be appointed by the national newspapers and the Agency of the China Banking Regulatory Commission, where the local newspaper announcement specified.

The liquidating Committee shall notice contents in the 3rd seat of the written report to the local Office of the China Banking Regulatory Commission.

93rd liquidation accounting records and business information in accordance with the relevant provisions.

94th from the branch of a foreign bank within 2 years from the date of completion of liquidation, the China Banking Regulatory Commission and its agencies not to entertain the foreign banks operating in the same city in China to set up the application.

95th, foreign-funded banks, Sino-foreign joint venture Bank with illegal business operations, bad management and other circumstances, shall not be annulled would seriously jeopardize the financial order and harm the public interest, by the China Banking Regulatory Commission in accordance with the provisions of the financial institutions under which revocation.

China Banking Regulatory Commission ordered to close branches of foreign banks, in accordance with the People's Republic of China company law provisions. 96th foreign-funded banks and Sino-foreign joint venture Bank being unable to pay its debts, voluntary or its creditors require filing for bankruptcy or dissolution and liquidation, the liquidation group after clearing the property, draw up a balance sheet and a schedule of assets, found foreign-funded banks, Sino-foreign joint venture Bank is not sufficient to pay the debt necessary to file for bankruptcy, approved by the China Banking Regulatory Commission shall immediately apply to the peoples Court declares bankruptcy.

Foreign-funded banks, Sino-foreign joint venture Bank by the Court after declaring bankruptcy, the liquidating Committee shall transfer the liquidating Affairs to the people's Court.

97th foreign bank branches in China by its conversion to wholly foreign-funded Bank funded by the its head office separate, original branch of a foreign bank shall return after the foreign-owned banks to the financial license, and to the industrial and commercial administration authorities for the cancellation of registration under the law.

98th approved closing of representative office shall in accordance with the law for cancellation after registration in the 15th, at the China Banking Regulatory Commission to be appointed by the national newspapers and location specified by the Agency of the China Banking Regulatory Commission on the local newspaper notices and announcements submitted to the local agency of the China Banking Regulatory Commission.

Seventh chapter supplementary articles article 99th foreign banks violate this rule, China Banking Regulatory Commission in accordance with the regulations and other provisions to be punished. 100th article of the China Banking Regulatory Commission announced on November 24, 2006 the People's Republic of China implementing rules of regulation of foreign banks (the China Banking Regulatory Commission in 2006, 6th) repealed simultaneously.