19940401
The State Council Regulations of the People’s Republic of China for the Administration of Foreign Banks and Chinese-foreign Equity Joint Banks in the the State Council April 2, 1985 Article 1 These Regulations are formulated with a view to expanding international economic and financial co-operation, facilitating the inflow Article 2 The term “foreign-funded banks” referred to in these Regulations means the branch banks established in the special economic zones The term “Chinese-foreign equity joint banks” referred to in these Regulations means banks jointly funded and operated in the special Article 3 foreign-funded banks and Chinese-foreign equity joint banks shall abide by the laws and regulations of the People’s Republic of China Article 4 To establish in a special economic zone a foreign bank or a Chinese-foreign equity joint bank, an application shall be filed with The branch banks of the People’s Bank of China in the special economic zones shall exercise administration and supervision over the The State Administration of Foreign Exchange Control shall be responsible for the issuance of the licence for business operations Article 5 Application for the establishment of a foreign bank or a Chinese-foreign equity joint bank shall be handled in accordance with the 1. If a bank with foreign capital intends to establish a branch bank in a special economic zone, the head office of the bank shall file (1) a written application duty signed by the chairman of the board of directors or the general manager with the authorization of the board (2) articles of association of the head office of the bank, the composition of the board of directors, the balance sheets, statements (3) a copy of the business licence verified and issued by the competent authorities in the country or region where the bank is located; (4) letters of undertaking issued by the head office of the bank assuming the tax and debt repayment obligations for the intended branch 2. For the establishment of the head office of a foreign bank in a special economic zone, the foreign investors concerned shall file (1) a written application for the establishment of the foreign bank, containing such information as the name of the head office of the (2) articles of association; (3) a list of the candidates for the board of directors, including its chairman and vice-chairmen, and the directors nominated by the (4) data about the status of the assets and liabilities of the investors attached with documents certified by a notary office. 3. For the establishment of a Chinese-foreign equity joint bank in a special economic zone, all investing parties thereto shall jointly (1) a written application for the establishment of the equity joint bank, containing such information as the name of the equity joint (2) a feasibility study report jointly prepared by all the investing parties thereto; (3) the draft agreement, contract and articles of association of the equity joint bank initialled by the authorized representatives of (4) a list of the candidates for the board of directors, including its chairman and vice-chairmen, jointly nominated by all the investing 4. Where foreign-funded banks and Chinese-foreign equity joint banks established in the special economic zones intend to establish separate If any of the documents and data referred to in paragraph 1 of this Article is written in a foreign language, they shall be attached Article 6 The People’s Bank of China shall, based on the application of a foreign bank or a Chinese-foreign equity joint bank, grant approval 1. loans in the domestic currency and in foreign currencies and discount of negotiable instruments; 2. inward remittances from foreign countries or from Hong Kong and Macao regions and collection of foreign exchange; 3. settlement for export transactions, and mortgage in foreign currency; 4. exchange of foreign currencies and of negotiable instruments in foreign currencies; 5. investment in the domestic currency or in foreign currencies; 6. gurantees of the domestic currency and foreign currencies; 7. deals in stocks and securities; 8. trust and safe deposit box services, credit and financial standing investigations and consultancy services; 9. outward remittances by enterprises with overseas Chinese capital, foreign-capital enterprises, Chinese-foreign equity joint ventures 10. deposits in the domestic currency and in foreign currencies and overdrafts by enterprises with overseas Chinese capital, foreign-capital 11. handling deposits or loans in foreign exchange in foreign countries or in Hong Kong and Macao regions; and 12. other business operations. Article 7 The registered capital of the head office of a foreign bank or a Chinese-foreign equity joint bank established in a special economic The paid-in capital and the operating funds of a foreign bank or a Chinese-foreign equity joint bank shall be raised in full within Article 8 A foreign bank or a Chinese-foreign equity joint bank shall, within 30 days following the day on which its establishment is approved, Where a foreign bank or a Chinese-foreign equity joint bank fails to commence its business operations within 12 months following the Article 9 The total amount of loans granted by the head office of a foreign bank or by a Chinese-foreign equity joint bank in a special economic Article 10 The business operations in exchange and settlement between the domestic currency and foreign currencies of a foreign bank or of a The rates of interest with respect to the various kinds of deposits, loans, overdrafts and discount of negotiable instruments in the Article 11 A foreign bank or a Chinese-foreign equity joint bank that handles various deposits in the domestic currency or in foreign currencies Article 12 foreign-funded banks and Chinese-foreign equity joint banks shall submit to the blanch banks of the People’s Bank of China in the 1. prior to the 10th of each month, the balance sheet of the previous month shall be submitted; 2. prior to the 15th of the first month of each quarter, a breakdown of deposits and loans, a breakdown of outward and inward remittances 3. prior to the end of March of each year, the balance sheet, the statement of profit and loss and the statement of account balance of Article 13 The branch banks of the People’s Bank of China in the special economic zones shall have the right to examine the position of business Article 14 A foreign bank may remit abroad the profit that remains after tax has been paid in accordance with the law. The head office of a foreign bank or a Chinese-foreign equity joint bank established in a special economic zone shall, in accordance Foreign staff and staff from Hong Kong and Macao regions of a foreign bank or of a Chinese-foreign equity joint bank may remit abroad Article 15 A foreign bank or a Chinese-foreign equity joint bank that is to terminate its business operations shall, 30 days prior to the termination A foreign bank or a Chinese-foreign equity joint bank that is to suspend its business operations shall, in accordance with the provisions Upon the completion of liquidation as referred to in the preceding paragraph, the foreign bank or Chinese-foreign equity joint bank Article 16 In the case where a foreign-funded bank or a Chinese-foreign equity joint bank violates these Regulations or any other financial regulations, If a foreign-funded bank or a Chinese-foreign equity joint bank violates the laws and regulations to an especially serious extent, Article 17 These Regulations shall also apply to banks and financial institutions with overseas Chinese capital or with capital from Hong Kong Article 18 The People’s Bank of China shall be responsible for the interpretation of these Regulations. Article 19 These Regulations shall enter into force as of the date of promulgation. |
The State Council
1985-04-02