Decision of China Banking Regulatory Commission on Adjustment of
Banking Market Access Management Style and Procedure

Decree of China Banking Regulatory Commission  [2003] No.1

In order to raise the efficiency of market access and promote
financial innovation, China Banking Regulatory Commission decided to
adjust the management style and procedure of banking market access.
To be specific, it goes as follows:

I. Adjust the power of approving newly established branches
(I) Banking regulatory bureaus or branch bureaus directly under CBRC
should receive and check the application materials of the
policy-related banks, the state-owned commercial banks and the joint
stock commercial banks within their jurisdiction area for preparing
to construct branches and submit the materials to CBRC for approval.
Banking bureaus or branch bureaus directly under CBRC should check
the application materials for opening of the agencies CBRC have
approved, present the agencies licenses and make a copy for CBRC.
The style and procedure of approving newly established foreign
branches have no changes.
(II) Banking bureaus or branch bureaus directly under CBRC should
receive and approve the application materials of various banks in
the same cities for preparing to construct and opening branches and
present them licenses.
(III) Branch bureaus directly under CBRC are in charge of receiving
and checking the application materials of various banks in their
jurisdiction area for preparing to construct branches and submit
them to banking regulatory bureaus for approval; Branch banking
regulatory bureaus should check the application materials for
opening of the agencies banking regulatory bureaus have approved,
present the agencies licenses and make a copy for banking regulatory
bureaus.
II. Adjust the style of approving new business
(I) Eliminating the approval of the following business in Chinese
banks: domestic factoring, liquidation of funds from agency
securities (Bank-Security Transfer), agent insurance, investment
trusteeship by securities companies, trusteeship of credit capital,
pension trusteeship by enterprises. Eliminating the records of the
following business of Chinese banks: interest-paid note discount
from buyer or agreement, overdraft of accounts of legal persons and
agent of payment of trust products.
(II) Eliminating the records of the following business in foreign
banks: domestic factoring, interest-paid note discount from buyer or
agreement and overdraft of accounts of legal persons.
(III) Within 10 working days after state-owned commercial banks and
holding commercial banks began the above-mentioned business, their
general banks should report to CBRC in written form. Furthermore,
city commercial banks, rural commercial banks and foreign banks only
need report to banking regulatory bureaus or branch bureaus directly
under CBRC or branch banking regulatory bureaus in the same place
within 10 working days after starting the above-mentioned business.
(IV) Different banks are entitled to authorize their affiliated
agencies meeting the requirement to do the new business which has
been approved. The branches of various banks can start new business
after authorized by upper level banks and they should submit written
reports to local banking regulatory bureaus or branches directly
under CBRC or branch banking regulatory bureaus within 10 working
days after starting the business.
III. adjust the style of checking and approving the qualification of
holding posts of senior administrative personnel
(I) In Chinese banks, solely-owned banks established by foreign
investors and Sino-foreign joint venture banks, for the senior
administrative personnel who make parallel transfer, if they have
obtained the approval of taking posts, the former approval is
effective and does not need checking and approving again.
(II) The above-mentioned senior administrative personnel may submit
their auditing reports for leaving posts and materials related to
holding offices to local banking regulatory bureaus or branches
directly under CBRC or branch banking regulatory bureaus within 1
month after leaving posts.
(III) Eliminating the records of post-holding qualifications of
directors of foreign-invested banks’ branches.
IV. Present style and procedure of market access of urban credit
cooperatives, rural credit cooperatives and postal saving agencies
maintain unchangeable.