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| Category | BANKING | Organ of Promulgation | The State Council | Status of Effect | In Force |
| Date of Promulgation | 1994-02-25 | Effective Date | 1994-04-01 |
|
Regulations of the People's Republic of China on Administration of Foreign-capital Financial Institutions |
|---|
Article 1 These Regulations are formulated in order to meet the needs
of opening to the outside world and the economic development, strengthen
and perfect the administration of foreign-capital financial institutions.
Article 2 The term "foreign-capital financial institutions", referred
to in these Regulations, means the following financial institutions which
are established and engaged in business operations on approval within
Chinese territory in accordance with the relevant laws and regulations of
the People's Republic of China:
(1) foreign-capital banks with their head offices established within
Chinese territory (hereinafter referred to as "foreign bank");
(2) branches of foreign banks established within Chinese territory
(hereinafter referred to as "foreign branch bank");
(3) banks established within Chinese territory with joint capital and
operation by foreign financial institutions and Chinese financial
institutions (hereinafter referred to as "joint bank");
(4) financial companies with their head offices established within
Chinese territory (hereinafter referred to as "foreign financial company");
or
(5) financial company established within Chinese territory with joint
capital and operation by foreign financial institutions and Chinese
financial institutions (hereinafter referred to as "joint financial
company").
The regions where foreign-capital financial institutions are established
shall be determined by the State Council.
Article 3 Foreign-capital financial institutions shall abide by the
laws and regulations of the People's Republic of China and shall do nothing
detrimental to the social and public interests of the People's Republic of
China.
The legitimate management activities and lawful rights and interests
of foreign-capital financial institutions shall be protected by the laws
of the People's Republic of China.
Article 4 The People's Bank of China is the competent authority in Article 5 The minimum amount of the registered capital of a foreign A foreign branch bank shall be allocated as its operating funds by Article 6 An applicant applying for the approval to set up a foreign (1) the applicant is a financial institution; (2) the applicant has a representative office of more than two years' (3) the applicant possesses total assets of not less than US$ 10 billion (4) in the home country or region of the applicant, there is a complete Article 7 An applicant applying for the approval to establish a (1) the applicant has a representative office of more than two years' (2) the applicant possesses total assets of not less than US$ 20 (3) in the home country or region of the applicant, there is a complete Article 8 Applicants applying for the approval to set up a joint (1) each party to the venture of a joint bank or a joint financial (2) the foreign party to the venture has a representative office within (3) the foreign party to the venture possesses total assets of not less (4) in the home country or region of the foreign party to the venture, Article 9 For a foreign bank or a foreign financial company to be (1) an application report for the establishment thereof, which shall (2) a feasibility study report; (3) the articles of association of the intended foreign bank or foreign (4) the business licence copy approved and issued by the competent (5) the annual reports of the applicant for the three successive years (6) other documents as required by the People's Bank of China. Article 10 For a foreign branch bank to be established, the head (1) an application report duly signed by the legal representative, which (2) the business licence copy approved and issued by the competent (3) the annual reports of the applicant for the three successive years (4) other documents as required by the People's Bank of China. Article 11 For a joint bank or a joint financial company to be (1) an application report for the establishment thereof, which shall (2) a feasibility study report; (3) the contract of joint capital and operation, and the articles of (4) the respective business licences copies of all the parties hereto (5) annual reports of each of the parties for the successive years prior (6) other documents as required by the People's Bank of China. Article 12 Any of the documents prescribed in Article 9, 10 and 11 of Article 13 After the People's Bank of China has preliminarily Article 14 The applicant(s) shall, within 60 days of receipt of the (1) a list of the principal persons in charge of the intended (2) powers of attorney for the intended principal persons in charge of (3) where a foreign branch bank is to be established, letters of (4) other documents as required by the People's Bank of China. Article 15 A foreign-capital financial institution shall, within 30 Article 16 A foreign-capital financial institution shall, within 30 Article 17 A foreign bank, a foreign branch bank or a joint bank may, (1) deposits in foreign exchange; (2) loans in foreign exchange; (3) discounts of negotiable instruments in foreign exchange; (4) investments approved in foreign exchange; (5) remittances in foreign exchange; (6) guarantees in foreign exchange; (7) import and export settlement; (8) buying and selling of foreign exchange on its own account or on (9) acting as an agent for the exchange of foreign currencies and for (10) acting as an agent for payments against credit cards in foreign (11) custody and safe deposit box services; (12) credit and financial standing investigation and consultancy (13) the services approved in domestic currency and other services Article 18 A foreign financial company or a joint financial company (1) deposits in foreign exchange with each deposit amounting to not (2) loans in foreign exchange; (3) discounts of negotiable instruments in foreign exchange; (4) investments approved in foreign exchange; (5) guarantees of foreign exchange; (6) buying and selling of foreign exchange on its own account or on (7) credit and financial standing investigation and consultancy services; (8) trust in foreign exchange; or (9) services approved in domestic currency and other services approved Article 19 The term "deposits in foreign exchange" referred to in (1) interbank deposits inside and outside China; (2) non-interbank deposits outside China; (3) deposits by foreigners inside China; (4) deposits by overseas Chinese and by Hong Kong, Macao and Taiwan (5) deposits by enterprises with foreign investment; (6) deposits of loans granted by foreign-capital financial institutions (7) other kinds of deposits approved in foreign exchange. Article 20 The term "remittances in foreign exchange" referred to in Article 21 The term "import and export settlement" referred to in Article 22 The interest rates of deposits and loans and various Article 23 A foreign-capital financial institution which engages in Article 24 30% of the operating funds of a foreign branch bank shall Article 25 The total assets of a foreign bank, a joint bank, a foreign Article 26 The total amount of loans which a foreign bank, a joint Article 27 The total amount of investment by a foreign bank, a joint Article 28 The fixed assets owned by a foreign bank, a joint bank, a Article 29 A foreign-capital financial institution shall insure the Article 30 The total amount of deposits by domestic sources in a Article 31 A foreign-capital financial institution shall calculate and Article 32 A foreign bank, a joint bank, a foreign financial company Article 33 A foreign-capital financial institution shall engage at Article 34 A foreign-capital financial institution shall appoint Article 35 A foreign-capital financial institution shall, in respect (1) establishment of a branch office; (2) adjustment and transfer of the registered capital or increase and (3) change of the name of the institution or the business site; or (4) change of members of the senior managerial body. Article 36 A foreign-capital financial institution shall submit its Article 37 The People's Bank of China and its relevant branch office Article 38 If a foreign-capital financial institution is to terminate Article 39 In the event that a foreign-capital financial institution Article 40 Where a foreign-capital financial institution which is to Article 41 Upon completion of liquidation, a foreign-capital financial Article 42 If, in violation of the provisions in Chapter II of these Article 43 If, in violation of the provisions in Chapter III of Article 44 If, in violation of the relevant provisions in Chapter Article 45 If, in violation of the relevant provisions in Chapter IV Article 46 Where a foreign-capital financial institution violates Article 47 If a foreign-capital financial institution violates other Article 48 These Regulations shall apply mutatis mutandis to Article 49 Measures for the administration of the resident Article 50 The People's Bank of China shall be responsible for the Article 51 These Regulations shall enter into force on April 1,
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charge of administering and supervising foreign-capital financial
institutions; the branch institutions of the People's Bank of China in the
regions, where foreign-capital financial institutions are established,
shall exercise day-to-day administration and supervision of foreign-capital
financial institutions in their own regions.
Chapter II Establishment and Registration
bank or a joint bank shall be freely convertible currencies equivalent to
300 million Renminbi yuan; the minimum amount of the registered capital of
a foreign financial company or a joint financial company shall be freely
convertible currencies equivalent to 200 million Renminbi yuan; their
respective paid-in capital shall be no less than 50% of their respective
registered capital.
its head office a free sum of freely convertible currencies equivalent to
not less than 100 million Renminbi yuan.
bank or a foreign financial company shall satisfy the following
requirements:
standing within Chinese territory;
at the end of the year prior to the submission of such an application; and
system for financial administration and supervision.
foreign branch bank shall satisfy the following requirements:
standing within Chinese territory;
billion at the end of the year prior to the submission of such an
application; and
system for financial administration and supervision.
bank or a joint financial company shall satisfy the following requirements:
company is a financial institution;
Chinese territory;
than US$ 10 billion at the end of the year prior to the submission of such
an application; and
there is a complete system for financial administration and supervision.
established, the applicant shall submit to the People's Bank of China an
application in writing and provide the following documents:
include the name of the intended foreign bank or foreign financial
company, the registered capital and the mount of the paid-in capital, and
the types of business operations the bank or company intends to engage in,
etc;
financial company;
authority concerned in the home country or region of the applicant;
prior to the submission of such an application; and
office of the foreign bank concerned shall submit to the People's Bank of
China an application in writing and the following documents:
shall include the name of the intended foreign branch bank, the free
amount of operating funds allocated by the head office, and the types of
business operations the foreign branch bank intends to engage in, etc;
authority concerned in the home country or region of the applicant;
prior to the submission of such an application; and
established, all the parties thereof shall jointly submit to the People's
Bank of China an application in writing and provide the following
documents:
include the name of the intended joint bank or joint financial company,
the name of each investing party thereto, the amount of the registered
capital and paid-in capital, the respective percentage of contributions by
the parties, and the types of business operations the joint bank or the
joint financial company intends to engage in, etc;
association of the intended joint bank or the joint financial company;
approved and issued by the competent authorities concerned in the home
country or region of each of the applicants;
to the submission of such an application; and
these Regulations, with the exception of the annual reports, if written in
foreign language, shall be submitted together with a Chinese translation
thereof.
examined and approved the application for establishing the foreign-capital
financial institution, an official application form shall be issued to the
applicant(s). If the applicant(s) don't receive the official application
form within 90 days of the submission of its application, the application
thereof shall be deemed to have been rejected.
official application form, submit to the People's Bank of China for
examination and approval, the application having been filled in together
with the following documents:
foreign-capital financial institution and their respective curriculum
vitae;
the foreign-capital financial institution;
undertaking issued by the head office assuming for its branch bank the
obligations for tax payment and debt repayment; and
days of receipt of the certificate of approval issued by the People's Bank
of China, raise in full paid-in capital or operating funds, which shall be
transferred into Chinese territory and verified by the Chinese registered
accountant(s), then shall go through the procedures of registration with
the administrative department for industry and commerce in accordance with
the law and shall, within 30 days of commencement of business operations,
go through the procedures for tax registration with the tax authority in
accordance with the law.
days following the day on which the establishment is examined and approved,
apply to the State Administration of Foreign Exchange Control for the
approval and issuance of a Licence to Engage in Foreign Exchange Business
Operations.
Chapter III Business Scope
in accordance with the business scope approved by the People's Bank of
China, engage in part or all of the following business operations:
customer's account;
the cashing of negotiable instruments in foreign exchange;
currencies;
services; or
approved in foreign currencies.
may, in accordance with the business scope approved by the People's Bank
of China, engage in part or all of the following business operations:
less than US$ 100,000 for period of not less than three months;
customer's account;
in foreign currencies.
this Chapter, means the following deposits denominated in foreign
currencies:
compatriots;
to enterprises other than those with foreign investment; or
this Chapter, means the inward remittances from abroad and outward
remittances from China by enterprises with foreign investment, foreigners,
overseas Chinese and Hong Kong, Macao and Taiwan compatriots.
this Chapter, means the import and export settlement, which is handled by
foreign banks, foreign branch banks or joint banks, by enterprises with
foreign investment, and the export settlement approved by enterprises
other than those with foreign investment and the import settlement under
the heading of loans.
Chapter IV Supervision and Administration
service charges of a foreign-capital financial institution shall be
determined by itself in accordance with the relevant provisions of the
People's Bank of China.
deposit business operations shall place deposit reserves with the local
branch institution of the People's Bank of China. The ratios of the
reserves shall be determined by the People's Bank of China and shall be
adjusted in accordance with the actual needs. Such deposit reserves shall
be interest-free.
be put in the form of interest-bearing assets as prescribed by the People's
Bank of China, which shall include the afore said funds deposited in a bank
or banks designated by the People's Bank of China.
financial company or a joint financial company shall not exceed 20 times
the sum total of its paid-in capital and its total reserves.
bank, a foreign financial company or a joint financial company grants to
one of any one enterprise and its associated enterprises shall not exceed
30% of the sum total of its paid-in capital and its total reserves, with
the exception of loans specially approved by the People's Bank of China.
bank, a foreign financial company or a joint financial company shall not
exceed 30% of the sum total of its paid-in capital and its total reserves,
with the exception of investment in financial institutions approved by the
People's Bank of China.
foreign financial company or a joint financial company shall not exceed 40%
of the sum total of its paid-in capital and its total reserves.
mobility of its assets. The specific measures thereof shall be formulated
by the People's Bank of China separately.
foreign-capital financial institution shall not exceed 40% of its total
assets.
maintain reserves for bad debt in accordance with the relevant provisions.
or a joint financial company shall, where its amount of paid-in capital is
less than the amount of the registered capital, allocate 25% of its after-
tax profit as supplementary capital until the sum total of its paid-in
capital and its total reserves is equal to its registered capital.
least one Chinese citizen as a member of its senior managerial body.
Chinese registered accountants and such an appointment shall be subject
to confirmation by the local branch bank of the People's Bank of China.
of any one of the following items, apply to the People's Bank of China
for approval and go through the relevant procedures of registration to
the administrative department for industry and commerce in accordance
with the law:
decrease of the operating funds;
financial statements and relevant documents to the People's Bank of China
and its relevant branch office in accordance with the relevant provisions.
shall have the right to examine and audit the management and financial
status of a foreign-capital financial institution.
Chapter V Dissolution and Liquidation
voluntarily its business activities, it shall, 30 days prior to the date
of termination thereof, submit an application in writing to the People's
Bank of China and shall, after such termination is approved by the
People's Bank of China, effect its dissolution and liquidation.
should become insolvent, the People's Bank of China may order it to
suspend its business and to clear its liabilities within a prescribed
period of time. If such an institution wishes to resume its business after
recovering its solvency for clearing its liabilities within the prescribed
period of time, it shall apply to the People's Bank of China for restarting
its business. If such an institution does not recover its solvency
exceeding the prescribed period of time, it shall effect its liquidation.
terminate because of dissolution, being disbanded in accordance with the
law or declaration of bankruptcy, its specific liquidation shall be
effected in accordance with the relevant provisions of laws and
regulations of the People's Republic of China.
institution shall, within the legal period of time, go through the
procedures with the original registration authority to nullify its
registration.
Chapter VI Provisions of Penalties
Regulations, a foreign- capital financial institution is established
without authorization, the People's Bank of China shall ban it and
confiscate its illegal earning, and may impose a fine in foreign exchange
equivalent to 50,000 to 100, 000 Renminbi yuan.
these Regulations, a foreign-capital financial institution engaged in
business operations beyond the authorized scope, the People's Bank of
China or its relevant branch office shall order it to suspend these
unauthorized business activities, confiscate the illegal earning derived
therefrom, and may impose a fine in foreign exchange equivalent to 10,000
to 50,000 Renminbi yuan.
IV of these Regulations, a foreign-capital financial institution engages
in business operations, the People's Bank of China or its relevant branch
bank shall have right to order it to make corrections, adjustments or
make up the deficiency, and may impose a fine in foreign exchange
equivalent to 5,000 to 30,000 Renminbi yuan.
of these Regulations, a foreign-capital financial institution failed to
submit its financial statements and the relevant documents required
within the prescribed period of time, the People's Bank of China or its
relevant branch office shall give a warning or circulate a notice of
reprimand, and order it make up for the submission thereof within a
prescribed period of time, and may impose a fine in foreign exchange
equivalent to 3,000 to 20,000 Renminbi yuan.
the provisions of these Regulations with serious circumstances, in
addition to penalties under Article 43, 44 and 45 in this Chapter, the
People's Bank of China may order it to suspend its business operations
and even revoke its business licence.
laws or regulations of the People's Republic of China, the relevant
competent authorities shall deal with such cases according to law.
Chapter VII Supplementary Provisions
financial business institutions which are established and operated within
the territory by Hong Kong, Macao and Taiwan financial institutions.
representative offices of foreign financial institutions in China shall
be formulated separately by the People's Bank of China.
interpretation of these Regulations and shall formulate rules for the
implementation of these Regulations.
1994. Regulations of the People's Republic of China for the Administration
of Foreign-Capital Banks and Chinese-Foreign Equity Joint Banks in the
Special Economic Zones promulgated by the State Council on April 2, 1985
and Measures for the Administration of Foreign-Capital Financial
Institutions and Chinese-Foreign Equity Joint Financial institutions in
Shanghai Municipality approved by the State Council on September 7, 1990
and promulgated by the People's Bank of China on September 8, 1990 shall
be annulled simultaneously.
URL: http://www.asianlii.org/cn/legis/cen/laws/roaoffi687