(Adopted at the Third Session of the Eighth National People’s Congress on March 18,1995, promulgated by Order No. 46 of the President of the People’s Republic of China on March 18, 1995, and effective as of the date of promulgation) Contents Chapter¢neral Provisions Chapter¢ganizational Structure Chapter¢e Renminbi Chapter¢siness Operations Chapter¢nancial Supervision and Control Chapter¢nancial Affairs and Accounting Chapter¢gal Liabilities chapter¢𠓵pplementary Provisions
Chapter¢neral Provisions Article 1 This Law is enacted in order to define the status and functions of the People’s Bank of China, ensure the correct formulation and 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, under the leadership of the State Council, formulate and implement monetary policies and exercise Article 3 The aim of monetary policies shall be to maintain the stability of the value of the 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 law; (2)to issue Renminbi(RMB) and control its circulation; (3)to examine, grant approval to, supervise and administer banking institutions in accordance with regulations; (4)to supervise and control the financial market in accordance with regulations; (5)to promulgate orders, rules and regulations concerning financial supervision and control and business operation; (6)to hold,administer and manage the State foreign exchange reserve and gold reserve; (7)to manage the State Treasury; (8)to maintain the normal operation of the systems for making payments and settling accounts; (9)to be responsible for statistics, investigation, analysis and forecasting concerning the banking industry; (10)to engage in relevant international banking operations in its capacity as the central bank of the State; and (11)other functions prescribed by the State Council. To implement monetary policies, the People’s Bank of China may carry out financial operations in accordance with the relevant provisions Article 5 The People’s Bank of China shall report its decisions to the State Council for approval concerning the annual money supply, interest The People’s Bank of China shall immediately implement the decisions on monetary policies for matters other than those specified in Article 6 The People’s Bank of China shall submit a work report to the Standing Committee of the National People’s Congress concerning matters Article 7 The People’s Bank of China shall, under the leadership of the State Council, implement monetary policies, perform its functions and Article 8 Al capital of the People’s Bank of China is invested by the State and owned by the State.
Chapter¢ganizational Structure Article 9 The People’s Bank of China shall have a Governor and a certain number of Deputy Governors. The candidate for the Governor of the People’s Bank of China shall be nominated by the Premier of the State Council and decided by Article 10 The People’s Bank of China shall practise a system wherein the Governor shall assume overall responsibility. The Governor shall direct Article 11 The people’s Bank of China shall establish a monetary policy committee, whose functions, composition and working procedures shall Article 12 The People’s Bank of China shall establish branches as its representative organs in light of the need of performing its functions The branches of The People’s Bank of China shall, as authorized by The People’s Bank of China, be responsible for financial supervision Article 13 The Governor, Deputy Governors and other staff members of The People’s Bank of China shall scrupulously abide by their duties; they Article 14 The Governor, Deputy Governors and other staff members of People’s Bank of China shall safeguard State secrets according to law and Chapter¢e Renminbi Article 15 The legal tender of The People’s Republic of China is the Reminbi(RMB).When the Renminbi is used to repay all public or private debts Article 16 The unit of the Renminbi is the yuan and the units of the fractional currency of the Renminbi are the jiao and the fen. Article 17 The Renminbi shall be printed and issued solely by the People’s Bank of China. When putting forth a new Renminbi issue, The People’s Bank of China shall make known to the public the issuing date, face values, Article 18 It is prohibited to counterfeit or alter Renminbi. It is prohibited to sell or purchase counterfeit or altered Renminbi. It is prohibited Article 19 No units or individuals may print or sell promissory notes as substitutes for Renminbi to circulate on the market. Article 20 The damaged or soiled Renminbi shall be exchanged in accordance with the regulations of The People’s Bank of China, which shall also Article 21 The People’s Bank of China shall establish a Renminbi issue treasury and shall establish subsidiary issue treasuries at its branches.
Chapter¢siness Operations Article 22 To implement monetary policies, The People’s Bank of China may apply the following monetary policy instruments: (1)to require a banking institution to place a deposit reserve at a prescribed ratio; (2)to fix the base interest rates for the central bank; (3)to handle rediscount for baking Institutions that have opened accounts in The People’s Bank of China; (4)to provide loans for commercial banks; (5)to deal in State bonds and other government bonds and foreign exchange on the open market; and (6)other monetary policy instrument decided by the State Council. When applying the monetary policy instruments listed in the preceding paragraph to implement monetary policies, The People’s Bank Article 23 The People’s Bank of China shall manage the State treasury in accordance with laws and administrative rules and regulations. Article 24 The People’s Bank of China may, on behalf of the financial department under the State Council, issue to banking institutions, and Article 25 The People’s Bank of China may open accounts for banking institution as needed, but may not allow them to overdraw. Article 26 The People’s Bank of China shall organize or assist in organizing a clearing system among banking institutions, coordinate the efforts Article 27 The People’s Bank of China may, as required by the implementation of monetary policies, determine the amounts, term, interest rates Article 28 The People’s Bank of China may not make an overdraft for the government, and may not directly subscribe or underwrite State bonds Article 29 The People’s Bank of China may not provide loans to the local governments or government departments at various levels, to non-banking The People’s Bank of China may not provide guaranty for any unit or individual.
Chapter¢nancial Supervision and Control Article 30 The People’s Bank of China shall, in accordance with law, exercise supervision and control over banking institutions and their business Article 31 The People’s Bank of China shall, in accordance with regulations, examine and approve the establishment, modification and termination Article 32 The People’s Bank of China shall have the power to examine, inspect and supervise at any time the deposits, loans, settlements, bad The People’s Bank of China shall have the power to inspect and supervise banking institutions as to whether they raise or lower the Article 33 The People’s Bank of China shall have the power to demand banking institutions to submit according to regulations balance sheets Article 34 The People’s Bank of China shall be responsible for compiling unified statistics and accounting statements from the national banking Article 35 The People’s Bank of China shall guide and supervise the business operations of the policy-oriented banks of the State. Article 36 The People’s Bank of China shall establish and perfect systems for its own examination and inspection and strengthen its own supervision Chapter¢nancial Affairs and 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 in the central budget after it has been examined and verified by the Article 38 The People’s Bank of China shall, after withdrawing funds for its general reserve at a proportion determined by the financial department Losses sustained by The People’s Bank of China shall be made up by appropriations from the State treasury. Article 39 The financial receipts and payments and accounting affairs of The People’s Bank of China shall be governed by laws, administrative Article 40 The People’s Bank of China shall, within three months after the end of every accounting year, compile balance sheets of its assets, The fiscal year of The People’s Bank of China begins on the first day of January and ends on the thirty-first day of December of the Chapter¢gal Liabilities Article 41 Anyone who counterfeits Renminbi or sells counterfeit Renminbi, or knowingly transports counterfeit Renminbi shall be investigated Anyone who alters Renminbi or sells altered Renminbi or knowingly transports altered Renminbi, if the case constitutes a crime, shall Article 42 Anyone who buys counterfeit or altered Renminbi or knowingly holds or uses counterfeit or altered Renminbi, if the case constitutes Article 43 If anyone illegally uses the patterns of Renminbi in propaganda materials, publications or other commodities, the People’s Bank Article 44 If anyone prints or sells promissory notes as substitutes for Renminbi to circulate on the market, the People’s Bank of China shall Article 45 If anyone violates the provisions of laws or administrative rules and regulations concerning financial supervision and control, Article 46 If any party refuses to accept the administrative punishment, he may institute an administrative lawsuit in accordance with the Article 47 If the People’s Bank of China commits any of the following acts, the persons directly in charge and other persons directly responsible (1)to provide a loan in violation of the provisions in the first paragraph of Article 29; (2)to provide guaranty for a unit or individual; or (3)to use the issue fund without authorization. If any of the acts specified in the preceding paragraph results in losses, the persons directly in charge and other persons directly Article 48 If a local government or a government department at any level, a public organization or an individual forcibly demands the People’s Article 49 If any staff member of the People’s Bank of China divulges State secrets and if the case constitutes a crime, he shall be investigated Article 50 If any staff member of the People’s Bank of China commits embezzlement, accepts bribes, conducts malpractices for personal ends, chapter¢𠓵pplementary Provisions Article 51 This Law shall be effective on the date of promulgation.
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Source:the People’s Bank of China |
Editor:Jeff |