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The National People’s Congress Order of the President of the People’s Republic of China No.46 The Law of the People’s Republic of China on the People’s Bank of China, adopted at the Third Session of the Eighth National People’s President of the People’s Republic of China: Jiang Zemin March 10, 1995 Law of the People’s Republic of China on the People’s Bank of China ContentsChapter I General Provisions Chapter II Institutional Structure Chapter III Renminbi Chapter IV Business Operations Chapter V Supervision over Financial Institutions Chapter VI Financial Accounting Chapter VII Legal Liabilities Chapter VIII Supplementary Provisions Chapter I General Provisions Article 1 This Law is formulated for the purpose of defining the status and functions of the People’s Bank of China, ensuring the correct formulation Article 2 The People’s Bank of China is the central bank of the People’s Republic of China. The People’s Bank of China shall formulate and implement monetary policies and exercise supervision and control over the financial Article 3 The aim of monetary policies is to maintain the stability of the value of currency and thereby promote economic growth. Article 4 The People’s Bank of China shall perform the following functions: (1) to formulate and implement monetary policies in accordance with the law; (2) to issue Renminbi(RMB) and control its circulation; (3) to approve, supervise and administer financial institutions in accordance with regulations; (4) to supervise and control the financial market in accordance with regulations; (5) to promulgate ordinances and rules concerning financial administration and business; (6) to hold, administer and manage the state foreign exchange reserve and bullion reserve; (7) to act as fiscal agent for the State; (8) to maintain the normal operation of payment, clearing and settlement systems; (9) to be responsible for statistics, investigation, analysis and forecasting for the financial industry; (10) to engage in relevant international financial activities in the capacity of the central bank of China; and (11) other functions assigned by the State Council. In order to implement monetary policies, the People’s Bank of China may carry out financial businesses in accordance with the relevant Article 5 The People’s Bank of China shall report its decisions concerning the annual supply of banknotes, interest rates, foreign exchange The People’s Bank of China shall immediately implement decisions on matters concerning monetary policies not specified in the preceding Article 6 The People’s Bank of China shall submit work reports to the Standing Committee of the National People’s Congress on matters concerning Article 7 The People’s Bank of China shall, under the leadership of the State Council, independently implement monetary policies, exercise its Article 8 The entire paid-up capital of the People’s Bank of China is allocated by the State and owned solely by the State. Chapter II Institutional Structure Article 9 The People’s Bank of China shall have a governor and a number of deputy governors. The person for the Governor of the People’s Bank of China shall, on the basis of nomination by the Premier of the State Council, be Article 10 The People’s Bank of China shall institute a system wherein the governor assumes the overall responsibility. The governor shall direct Article 11 The People’s Bank of China shall establish a monetary policy committee whose functions, organization and working procedure shall be Article 12 The People’s Bank of China shall, as necessitated by the performance of its functions, establish its branches as its representative The branches of the People’s Bank of China shall, as authorized by the People’s Bank of China, be responsible for the supervision Article 13 The governor, deputy governors and other staff of the People’s Bank of China shall be diligent in carrying out their functions, refrain Article 14 The governor, deputy governors and other staff of the People’s Bank of China shall keep State secrets in accordance with the law and Chapter III Renminbi Article 15 The legal tender of the People’s Republic of China is Renminbi(RMB). The Renminbi shall be used for repaying all public or private Article 16 The basic unit of Renminbi is the yuan and the units of fractional currency of Renminbi are the jiao and the fen. Article 17 Renminbi shall be printed, minted and issued solely by the People’s Bank of China. The People’s Bank of China shall make public announcement of the date, face value, designs, patterns and specifications of a new RMB Article 18 Any counterfeiting or altering of Renminbi is prohibited. Selling or buying counterfeit or altered Renminbi is prohibited. Transportation, Article 19 No organization or individual shall be allowed to print or issue coupons as substitutes of Renminbi for circulation. Article 20 Damaged or soiled Renminbi notes shall be exchanged in accordance with the regulations of the People’s Bank of China and the People’s Article 21 The People’s Bank of China shall establish a Renminbi issue treasury and its branches shall establish subsidiary treasury. The subsidiary Chapter IV Business Operations Article 22 The People’s Bank of China may, for the purpose of implementing monetary policies, apply the following monetary policy instruments: (1) to require a financial institution to place a deposits reserve fund at a required ratio; (2) to fix the base interest rates; (3) to provide rediscount business for financial institutions having current accounts in the People’s Bank of China; (4) to provide loans for commercial banks; (5) to buy and sell state bonds and other government bonds and foreign exchange in the open market operation; and (6) other monetary policy instruments defined by the State Council. The People’s Bank of China may work out specific conditions and procedure when applying the monetary policy instruments set forth Article 23 The People’s Bank of China shall act as fiscal agent for the State in accordance with the law and administrative decrees and regulations. Article 24 The People’s Bank of China may organize financial institutions in issuing and cashing state bonds and other government bonds on behalf Article 25 The People’s Bank of China may open accounts for financial institutions as needed, but may not provide the financial institutions Article 26 The People’s Bank of China shall organize or assist in organizing financial institutions in settling inter-institutional accounts, Article 27 The People’s Bank of China may, as needed for implementing monetary policies, determine the amounts, duration, rate of interest and Article 28 The People’s Bank of China may not provide the State with overdraft facilities, and may not directly subscribe and underwrite state Article 29 The People’s Bank of China may not provide loans to local governments or governmental departments at all levels, or to financial institutions The People’s Bank of China may not act as financial guarantor for any organization or individual. Chapter V Supervision over Financial Institutions Article 30 The People’s Bank of China shall, in accordance with the law, exercise supervision over financial institutions and their business Article 31 The People’s Bank of China shall, in accordance with relevant regulations, approve the establishment, changes, termination and the Article 32 The People’s Bank of China shall have the power to audit, check and supervise at any time the deposits, credits, settlements, bad The People’s Bank of Chins shall have the power to check and supervise the raising or lowering of interest rates on deposits or loans Article 33 The People’s Bank of China shall have the power to demand financial institutions to submit balance sheets, statements of profit and Article 34 The People’s Bank of China shall be responsible for compiling comprehensive statistics and accounting statements for the national Article 35 The People’s Bank of China shall guide and supervise the business operations of the state banks responsible for implementing state Article 36 The People’s Bank of China shall establish and perfect its systems of control and check-ups and strengthen its internal supervision. Chapter VI Financial Accounting Article 37 The People’s Bank of China shall exercise independent control over its financial budget. The budget of the People’s Bank of China shall be incorporated into the central budget after it has been examined and verified by Article 38 The People’s Bank of China shall turn over to the state treasury the entire net profit from its annual income minus annual expenditure Losses sustained by the People’s Bank of China shall be offset by state allocations. Article 39 The People’s Bank of China shall abide by the law, administrative rules and regulations and the unified state accounting system in Article 40 The People’s Bank of China shall, within three months after the end of every fiscal year, complete the balance sheet, statement of The fiscal year of the People’s Bank of China begins on the first of January and ends on the thirty first of December of the Gregorian Chapter VII Legal Liabilities Article 41 Anyone who forges or mints currency, sells counterfeit Renminbi, or knowingly transports counterfeit money shall be investigated for Anyone who alters Renminbi or sells altered Renminbi or knowingly transports altered Renminbi shall, if the case constitutes a crime, Article 43 In the event that anyone illegally uses the image of Renminbi on propaganda material, publications or other commodities, the People’s Article 44 In the event that anyone prints or sells coupons as substitutes for Renminbi for circulation, the People’s Bank of China shall order Article 45 In the event that anyone violates the law or administrative rules or regulations regarding financial supervision, the People’s Bank Article 46 If the person involved is not reconciled to the punishment, he or she may bring up an administrative suit in accordance with the “Administrative Article 47 If the People’s Bank of China commits any of the following acts, the person directly in charge and other persons held directly responsible (1) to provide a loan in violation of the First Paragraph of Article 29 of this Law; (2) to provide financial guarantee for an organization or individual; or (3) to use the currency issue fund without authorization. Should any of the aforesaid acts result in a loss, the person directly in charge and other persons held directly responsible shall Article 48 Should a local government or any other administrative organ at any level, or a public organization, or an individual coerce the People’s Article 49 Any staff of the People’s Bank of China who divulges a state secret shall, if the case constitutes a crime, be investigated for criminal Article 50 Any staff of the People’s Bank of China who commits embezzlements, corruption, malpractice for personal gains, abuse of power, neglect Chapter VIII Supplementary Provisions Article 51 This Law shall enter into force on the date of its promulgation. |
The National People’s Congress
1995-03-18