Regulations on Administration of Foreign-funded Banks

Following is the unofficial translation of the full text of the Regulations of the People's Republic of China on
Administration of Foreign-funded Banks.

Chapter I General Provisions

● Article 1 These regulations are formulated for the purposes of meeting the needs of opening up to the
outside world and economic development, strengthening and improving the supervision of foreign-funded banks,
and promoting the safe and sound operation of the banking industry.

● Article 2 The term "foreign-funded bank" in these regulations means any of the following institutions
approved to be established within the territory of the People's Republic of China in accordance with relevant
laws and regulations of the People's Republic of China:
(1)a wholly foreign-funded bank funded by a foreign bank on its own or jointly with any other foreign financial
institution;
(2)a Chinese-foreign joint venture bank jointly funded by a foreign financial institution with a Chinese
company or enterprise;
(3)a branch of a foreign bank
(4)a representative office of a foreign bank.
The institutions listed in subparagraphs (1) to (3) of the preceding paragraph are hereinafter referred to
collectively as operational foreign-funded banks.

● Article 3 The term "foreign financial institution" in these regulations means a financial institution that is
registered outside the territory of the People's Republic of China and is approved or licensed by the
financial regulatory authority of its home country or region.
The term "foreign bank" in these regulations means a commercial bank that is registered outside the territory
of the People's Republic of China and is approved or licensed by the financial regulatory authority of its
home country or region.

● Article 4 A foreign-funded bank shall abide by the
laws and regulations of the People's Republic of China,
and shall not harm the national, social and public
interests of the People's Republic of China.
The legitimate activities and lawful rights and
interests of a foreign-funded bank shall be protected by
the laws of the People's Republic of China.

● Article 5 The banking regulatory agency of the State
Council and its local offices (hereinafter referred
collectively to as the banking regulatory agency) shall
be responsible for the supervision of foreign-funded
banks and their business activities. Where other
supervisory departments or institutions that supervise
foreign-funded banks and their business activities are
specified in laws or regulations, such provisions shall
prevail.
●Article 6 The encouraging and guiding measures
formulated by the banking regulatory agency of the State
Council on the basis of the regional economic
development strategy and other related policies of the
State shall be implemented after submission to and
approval by the State Council.

Chapter II Establishment and Registration
● Article 7 Establishment of a foreign-funded bank and
its branch shall be subject to examination and approval
by the banking regulatory agency.
● Article 8 The minimum registered capital for a wholly
foreign-funded bank or a Chinese-foreign joint venture
bank shall be 1 billion yuan (126.6 million U.S dollars)
or an equivalent amount in convertible currencies. The
registered capital shall be paid-in capital.
Where a wholly foreign-funded bank or a Chinese-foreign
joint venture bank establishes a branch within the
territory of the People's Republic of China, the branch
shall receive from its parent bank a non-callable
allocation of not less than 100 million yuan (12.7
million U.S dollars) or an equivalent amount in
convertible currencies as its operating capital. The
total amount of operating capital allocated from a
wholly foreign-funded bank or a Chinese-foreign joint
venture bank to all its branches shall be no more than
60 per cent of the parent bank's aggregate capital.
A foreign bank branch shall receive from its parent bank
a non-callable allocation of not less than 200 million
yuan (23.3 million U.S dollars) or an equivalent amount
in convertible currencies as its operating capital.
The banking regulatory agency of the State Council may,
by taking into account the business scope of an
operational foreign-funded bank and the need of
prudential supervision, increase the minimum requirement
on the above-mentioned registered capital or operating
capital, and determine the RMB-denominated proportion of
capital.
● Article 9 The shareholder of a proposed wholly
foreign-funded bank or a Chinese-foreign joint venture
bank, and the foreign bank applying for establishing a
branch or a representative office, shall satisfy the
following requirements:
(1) having persistent profit earning capacity, good
reputation, and no record of material violation of laws
or regulations;
(2) the shareholder of a proposed wholly foreign-funded
bank, the foreign shareholder of a proposed
Chinese-foreign joint venture bank, and the foreign bank
applying for establishing a branch or a representative
office, shall have experience in international financial
activities;
(3) having in place effective anti-money laundering
systems;
(4) the shareholder of a proposed wholly foreign-funded
bank, the foreign shareholder of a proposed
Chinese-foreign joint venture bank, and the foreign bank
applying for establishing a branch or a representative
office shall be subject to effective supervision by the
financial supervisory authority of its home country or
region, and the application shall have been approved by
the financial supervisory authority of its home country
or region; and
(5) other prudential requirements prescribed by the
banking regulatory agency of the State Council.
The home country or region of the shareholder of a
proposed wholly foreign-funded bank, the foreign
shareholder of a proposed Chinese-foreign joint venture
bank, or the foreign bank applying for establishing a
branch or a representative office shall maintain a sound
financial regulatory system, and the financial
supervisory authority of such country or region has well
established a supervisory co-operation mechanism with
the banking regulatory agency of the State Council.
● Article 10 The shareholder of a proposed wholly
foreign-funded bank shall be a financial institution and
satisfy the requirements provided in article 9 of these
regulations. In addition, the sole shareholder or the
controlling shareholder of a proposed wholly
foreign-funded bank shall satisfy the following
requirements:
(1) being a commercial bank;
(2) having maintained a representative office within the
territory of the People's Republic of China for over two
years;
(3) having the total assets of not less than 10 billion
U.S dollars at the end of the year prior to the
submission of the application; and
(4) having the capital adequacy ratio that meets the
requirements prescribed by the financial supervisory
authority of its home country or region and the banking
regulatory agency of the State Council.
● Article 11 The shareholder of a proposed
Chinese-foreign joint venture bank shall satisfy the
requirements provided in article 9 of these regulations.
In addition, the foreign shareholder and the sole
Chinese shareholder or the major Chinese shareholder
shall be a financial institution, and the sole foreign
shareholder or the major foreign shareholder shall also
satisfy the following requirements:
(1) being a commercial bank;
(2) having maintained a representative office within the
territory of the People's Republic of China;
(3) having total assets of not less than 10 billion U.S
dollars at the end of the year prior to the submission
of the application; and
(4) having a capital adequacy ratio that meets the
requirements prescribed by the financial supervisory
authority of its home country or region and the banking
regulatory agency of the State
● Article 12 A foreign bank that applies for
establishing a branch shall satisfy the following
requirements in addition to those provided in article 9
of these regulations:
(1) having total assets of not less than 20 billion U.S
dollars at the end of the year prior to the submission
of the application;
(2) having a capital adequacy ratio that meets the
requirements prescribed by the financial supervisory
authority of its home country or region and the banking
regulatory agency of the State Council; and
(3) having maintained a representative office within the
territory of the People's Republic of China for over two
years where the foreign bank applies for establishing
its first branch.
● Article 13 A foreign bank that has already established
an operational foreign-funded bank within the territory
of the People's Republic of China shall not establish a
new representative office if it has already maintained a
representative office, with the exception of
establishment of a representative office in the areas
covered by the regional development strategy or other
related policies of the State.
If a representative office is changed with approval into
an operational foreign-funded bank, the foreign bank
shall go through the procedures for cancellation of
registration of the original representative office in
accordance with law.
● Article 14 Where applying for establishing an
operational foreign-funded bank, the applicant shall
first apply for the preparation of the bank and submit
the following application documents to the banking
regulatory agency in the place where the proposed bank
is to be established:
(1) an application letter, including the name, location,
registered capital or operating capital, the business
scope of the proposed bank;
(2) a feasibility study report;
(3) the draft articles of association of the proposed
wholly foreign-funded bank or Chinese-foreign joint
venture bank;
(4) the business contract signed by all shareholders of
the proposed wholly foreign-funded bank or
Chinese-foreign joint venture bank;
(5) articles of association of the shareholder of the
proposed wholly foreign-funded bank or Chinese-foreign
joint venture bank or of the foreign bank applying to
establish a branch;
(6) the organizational chart, name-list of major
shareholders, overseas establishments and associated
enterprises of the shareholder of the proposed wholly
foreign-funded bank or Chinese-foreign joint venture
bank or of the foreign bank applying to establish a
branch and its parent group;
(7) annual reports for the most recent three years of
the shareholder of the proposed wholly foreign-funded
bank or Chinese-foreign joint venture bank, or of the
foreign bank applying to establish a branch;
(8) anti-money laundering systems adopted by the
shareholder of the proposed wholly foreign-funded bank
or Chinese-foreign joint venture bank, or by the foreign
bank applying to establish a branch;
(9) photo copies of the business licence or the
financial services permit, and the written opinions on
the application issued by the financial regulatory
authority of the home country or region of the
shareholder of the proposed wholly foreign-funded bank,
or of the foreign shareholder of the proposed
Chinese-foreign joint venture bank, or of the foreign
bank applying to establish a branch; and
(10) other documents specified by the banking regulatory
agency of the State Council.
The banking regulatory agency in the place where the
proposed bank is to be established shall submit the
application documents together with its examination
opinion to the banking regulatory agency of the State
Council in due time.
● Article 15 The banking regulatory agency of the State
Council shall, within six months from the date of
receiving the complete application documents required
for the preparation for an operational foreign-funded
bank, make a decision to approve or not to approve the
preparation application and notify the applicant of such
decision in writing; if deciding not to approve the
preparation application, give the reasons thereof.
Where, in special circumstances, the banking regulatory
agency of the State Council cannot complete the
examination and make a decision to approve or not to
approve the preparation application within the time
limit prescribed in the preceding paragraph, it may
appropriately extend the examination time limit and
shall notify the applicant of the extension in writing;
however, the extended time limit shall not exceed three
months.
The applicant shall, by presenting the approval document
for the preparation, obtain an application form for
business commencement from the banking regulatory agency
in the place where the proposed bank is to be
established.
● Article 16 The applicant shall complete the
preparation of the proposed bank within six months from
the date of obtaining the approval for preparation.
Where the applicant fails to complete the preparation
within the prescribed time limit, it shall provide the
reasons thereof; and with the approval by the banking
regulatory agency in the place where the proposed bank
is to be established, the applicant may extend the
preparation period for three months. Where the applicant
fails to complete the preparation within the extended
period, the decision of approval for the preparation
issued by the banking regulatory agency of the State
Council shall automatically become void.
● Article 17 Upon completing the preparation and passing
the preparation inspection, the applicant shall submit
the completed application form for business commencement
and the following documents to the banking regulatory
agency in the place where the proposed bank is to be
established:
(1) the name-list and curricula vitae of the principal
persons-in-charge of the proposed bank;
(2) the power of attorney to the proposed principal
persons-in-charge of the bank;
(3) the capital verification certificate issued by a
statutory capital verification agency;
(4) documentation on security precautions and other
business-related facilities;
(5) a guaranty letter issued by the foreign bank
establishing a branch, stating that it shall be
responsible for all the taxes and other indebtednesses
the proposed branch will incur; and
(6) other documents required by the banking regulatory
agency of the State Council.
The banking regulatory agency in the place where the
proposed bank is to be established shall submit the
application documents together with its examination
opinion to the banking regulatory agency of the State
Council in due time.
● Article 18 The banking regulatory agency of the State
Council shall, within two months from the date of
receiving the complete application documents for
business commencement, make a decision to approve or not
to approve the application for business commencement and
notify the applicant of such a decision in writing; if
deciding to approve the application for business
commencement, issue a financial services permit; if
deciding not to approve the application for business
commencement, give the reasons thereof.
● Article 19 An approved operational foreign-funded bank
shall, by presenting its financial services permit,
register with the administrative department for industry
and commerce and obtain a business licence.
● Article 20 To establish a foreign bank representative
office, the applicant shall submit the following
application documents to the banking regulatory agency
in the place where the proposed representative office is
to be established:
(1) an application letter including, the name and
location of the proposed representative office;
(2) the feasibility study report;
(3) the applicant's articles of association;
(4) an organizational chart, name-list of major
shareholders, overseas branches and associated
enterprises of the applicant and its group;
(5) the applicant's annual reports for the most recent
three years;
(6) the applicant's anti-money laundering systems;
(7) photocopies of the personal identification, academic
degree certificate and curriculum vitae of the appointed
chief representative, as well as his statement of a
clean record;
(8) the power of attorney to the appointed chief
representative;
(9) photo copies of the business licence or financial
services permit issued by the financial regulatory
authority of the applicant's home country or region, and
its written opinions on the application; and
(10) other documents specified by the banking regulatory
agency of the State Council.
The banking regulatory agency in the place where the
proposed representative office is to be established
shall submit the application documents, together with
its examination opinion to the banking regulatory agency
of the State Council in due time.
● Article 21 The banking regulatory agency of the State
Council shall, within six months from the date of
receiving the complete application documents for
establishing a representative office by a foreign bank,
make a decision to approve or not to approve the
application for its establishment and notify the
applicant of such decision in writing; if deciding not
to approve the application for its establishment, give
the reasons thereof.
● Article 22 An approved foreign bank representative
office shall, by presenting the approval document,
register with the administrative department for industry
and commerce and obtain a business registration
certificate.
● Article 23 The documents listed in articles 14, 17 and
20 of these regulations, with the exception of the
annual reports, if prepared in a foreign language, shall
be submitted together with a Chinese translation
thereof.
● Article 24 A foreign bank, with the approval of the
banking regulatory agency of the State Council, may
change any of its branches established within the
territory of the People's Republic of China into a
wholly foreign-funded bank solely funded by its parent
bank, under the principles of legitimacy, prudence and
business continuity. The applicant shall file an
application for establishing a wholly foreign-funded
bank in accordance with the conditions, procedures and
application document requirements prescribed by the
banking regulatory agency of the State Council.
● Article 25 If a foreign bank branch changes into a
wholly foreign-funded bank solely funded by its parent
bank, such a foreign bank may, with the approval of the
banking regulatory agency of the State Council, maintain
one branch undertaking foreign exchange wholesale
business within the prescribed time limit. The applicant
shall file an application for such a branch in
accordance with the conditions, procedures and
application document requirements prescribed by the
banking regulatory agency of the State Council.
The term "foreign exchange wholesale business" in the
preceding paragraph means foreign exchange business
services provided to customers other than individual
customers.
● Article 26 The directors, senior executives and the
chief representative of a foreign-funded bank shall meet
the qualification requirements prescribed by the banking
regulatory agency of the State Council, and their
appointment shall be subject to approval by the banking
regulatory agency of the State Council.
● Article 27 A foreign-funded bank shall, under any of
the following circumstances, be subject to the approval
by the banking regulatory agency of the State Council,
and shall submit application documents in accordance
with relevant requirements, and shall register with the
administrative department for industry and commerce in
accordance with law:
(1) changing registered capital or operating capital;
(2) changing the bank's name, or business or office
premises;
(3) making adjustment to the scope of business;
(4) changing shareholders or their equity or stock
holdings;
(5) making amendments to the articles of association; or

(6) any other circumstances prescribed by the banking
regulatory agency of the State Council.
Where a foreign-funded bank replaces its directors,
senior executives or the chief representative, it shall
report the appointments to the banking regulatory agency
of the State Council for the approval of qualifications.

● Article 28 Where a foreign-funded bank or a
Chinese-foreign joint venture bank changes its
shareholder, the new shareholder shall satisfy the
requirements for the shareholder provided in article 9,
10 or 11 of these regulations.
In special circumstances, the new shareholder may be
exempted from the provisions of subparagraph (2) of
article 10 or subparagraph (2) of article 11 of these
regulations with the consent of the banking regulatory
agency of the State Council.

Chapter III Scope of Business
● Article 29 A wholly foreign-funded bank or a
Chinese-foreign joint venture bank may, in accordance
with the scope of business approved by the banking
regulatory agency of the State Council, engage in part
or all of the following foreign exchange and RMB
businesses:
(1) receiving deposits from the general public;
(2) granting short-term, medium-term and long-term
loans;
(3) handling acceptance and discounting of negotiable
instruments;
(4) buying and selling government bonds and financial
bonds, buying and selling foreign currency securities
other than stocks;
(5) providing letter of credit services and guaranty;
(6) handling domestic and foreign settlement;
(7) buying and selling foreign exchange and acting as an
agent for the purchase and sale of foreign exchange;
(8) acting as an agent for insurance companies;
(9) engaging in inter-bank lending;
(10) engaging in bank card business;
(11) providing safe deposit box services;
(12) providing credit information services and
consultancy services; and
(13) other businesses approved by the banking regulatory
agency of the State Council.
A wholly foreign-funded bank or a Chinese-foreign joint
venture bank may, with the approval of the People's Bank
of China, engage in foreign exchange settlement and sale
businesses. (more)
● Article 30 A branch of a wholly foreign-funded bank or
a Chinese-foreign joint venture bank shall conduct
business within the business scope authorized by its
parent bank and the branch's civil liabilities shall be
borne by its parent bank.
● Article 31 A foreign bank branch may, in accordance
with the scope of business approved by the banking
regulatory agency of the State Council, engage in part
or all of the following foreign exchange businesses, and
RMB businesses provided to customers other than Chinese
citizens within the territory of China:
(1) receiving deposits from the general public;
(2) granting short-term, medium-term and long-term
loans;
(3) handling acceptance and discounting of negotiable
instruments;
(4) buying and selling government bonds and financial
bonds, buying and selling foreign currency securities
other than stocks;
(5) providing letter of credit services and guaranty;
(6) handling domestic and foreign settlements;
(7) buying and selling foreign exchange and acting as an
agent for the purchase and sale of foreign exchange;
(8) acting as an agent for insurance companies;

(9) engaging in inter-bank lending;
(10) providing safe deposit box services;
(11) providing credit information services and
consultancy services; and
(12) other businesses approved by the banking regulatory
agency of the State Council.
A foreign bank branch may receive a time deposit of not
less than 1 million yuan (126,580 U.S. dollars) for each
time from the Chinese citizens within the territory of
China.
A foreign bank branch may, with the approval by the
People's Bank of China, engage in foreign exchange
settlement and sale businesses.
● Article 32 Civil liabilities of a foreign bank branch
and its sub-branches shall be borne by its parent bank.
● Article 33 A foreign bank representative office may
engage in the non-operational activities relating to the
businesses of the foreign bank it represents, including,
among other activities, liaison, market research and
consulting activities.
Civil liabilities incurred by a foreign bank
representative office in its activities shall be borne
by the foreign bank it represents.
● Article 34 An operational foreign-funded bank applying
to engage in the types of RMB businesses within the
scope of business as prescribed in article 29 or 31 of
these regulations, shall satisfy the following
requirements and be subject to the approval by the
banking regulatory agency of the State Council:
(1) having opened business within the territory of the
People's Republic of China for at least three years
prior to the application;
(2) having been profitable for two consecutive years
prior to the application; and
(3) other prudential requirements prescribed by the
banking regulatory agency of the State Council.
Where a foreign bank branch changes into a wholly
foreign-funded bank solely funded by its parent bank,
the time limit as prescribed in subparagraph (1) or (2)
of the preceding paragraph shall be calculated starting
from the date when the foreign bank branch is
established.
Chapter IV Supervision
● Article 35 An operational foreign-funded bank shall,
in accordance with relevant provisions, develop the
operating rules, improve management systems for risk
management and internal control, and ensure the
compliance with such rules, policies and procedures.
● Article 36 An operational foreign-funded bank shall
comply with the unified accounting rules of the State
and the provisions of the banking regulatory agency of
the State Council on information disclosure.
● Article 37 An operational foreign-funded bank shall
comply with the relevant provisions of the State when
issuing external debts.
● Article 38 An operational foreign-funded bank shall
determine its deposit and loan interest rates and the
rates of various service fees in accordance with the
relevant provisions.
● Article 39 An operational foreign-funded bank to
engage in deposit-taking business shall deposit required
reserves in accordance with the provisions of the
People's Bank of China.
● Article 40 A wholly foreign-funded bank or
Chinese-foreign joint venture bank shall comply with the
asset/liability ratio requirement prescribed in the Law
of the People's Republic of China on Commercial Banks. A
wholly foreign-funded bank changed from a foreign bank
branch and solely owned by its parent bank, or a wholly
foreign-funded bank or Chinese-foreign joint venture
bank established before these regulations take effect
shall, where its asset/liability ratio fails to meet the
requirement, satisfy such requirement within the time
frame prescribed by the banking regulatory agency of the
State Council.
The banking regulatory agency of the State Council shall
have the power to require a wholly foreign-funded bank
or Chinese-foreign joint venture bank identified with
high risks or weak risk management to increase its
capital adequacy ratio.
● Article 41 An operational foreign-funded bank shall
draw loan loss reserves in accordance with relevant
provisions.
● Article 42 A wholly foreign-funded bank or
Chinese-foreign joint venture bank shall comply with the
provisions of the banking regulatory agency of the State
Council on corporate governance.
● Article 43 A wholly foreign-funded bank or
Chinese-foreign joint venture bank shall comply with the
provisions of the banking regulatory agency of the State
Council on connected transactions.
● Article 44 Thirty per cent of the operating capital of
a foreign bank branch shall be maintained in the form of
interest-bearing assets required by the banking
regulatory agency of the State Council.
● Article 45 A foreign bank branch's RMB operating
capital plus RMB reserves shall be no less than 8 per
cent of the branch's RMB risk assets.
The banking regulatory agency of the State Council shall
have the power to require a foreign bank branch
identified with high risk and weak risk management to
increase the ratio set forth in the preceding paragraph.

● Article 46 A foreign bank branch shall ensure the
liquidity of its assets. The ratio of its current assets
to its current liabilities shall be no less than 25 per
cent.
● Article 47 A foreign bank branch's total domestic
assets denominated both in RMB and foreign currencies
shall be no less than its total domestic liabilities
denominated both in RMB and foreign currencies.
● Article 48 A foreign bank that establishes two or more
branches in the territory of the People's Republic of
China shall designate one of these branches for the
overall management of all the other branches.
The banking regulatory agency of the State Council shall
conduct consolidated supervision over the branches
established by a foreign bank within the territory of
the People's Republic of China.
● Article 49 An operational foreign-funded bank shall,
in accordance with the relevant provisions of the
banking regulatory agency of the State Council, report
to the local banking regulatory agency on the
cross-border funds movement and assets transfer of a
large amount.
● Article 50 The banking regulatory agency of the State
Council shall, in light of the risk profile of an
operational foreign-funded bank, have the power to take
such special supervisory measures as issuing an order to
suspend part of its business or replace its senior
executive.
● Article 51 An operational foreign-funded bank shall
hire an accounting firm established within the territory
of People's Republic of China to audit the bank's
financial reports, and shall report such a hiring
decision to the local banking regulatory agency. Where
the hiring contract is terminated, the reasons therefore
shall be presented.
● Article 52 An operational foreign-funded bank shall,
in accordance with relevant provisions, submit its
financial and accounting reports, statements and other
relevant data to the banking regulatory agency.
The representative office of a foreign bank shall, in
accordance with relevant provisions, submit relevant
data to the banking regulatory agency.
● Article 53 A foreign-funded bank shall be co-operative
in the supervision and inspection carried out by the
banking regulatory agency, and shall not refuse or
hamper such supervision and inspection.
● Article 54 A wholly foreign-funded bank or
Chinese-foreign joint venture bank shall each put into
place an independent internal control system, risk
management system, financial and accounting system, and
computer information management system.
● Article 55 The chairman of the board of directors and
senior executives of a wholly foreign-funded bank
established by a foreign bank within the territory of
the People's Republic of China, and the senior
executives of the same foreign bank's branch engaging in
foreign exchange wholesale business shall not hold
concurrent positions in each other's organizations.
● Article 56 Transactions between a wholly
foreign-funded bank established by a foreign bank within
the territory of the People's Republic of China and the
same foreign bank's branch engaging in foreign exchange
wholesale business shall be based on market terms and
shall not be more favourable than the terms of the
transactions between either entity and its non-related
parties. Such a foreign bank shall provide full guaranty
to the cash transactions between the forementioned
wholly foreign-funded bank and the foreign bank's
branch.
● Article 57 A foreign bank's representative office and
its staff shall not engage in any form of operational
business activities.
Chapter V Termination and Liquidation
● Article 58 Where an operational foreign-funded bank
decides to terminate its business activities, it shall
apply in writing to the banking regulatory agency of the
State Council 30 days prior to the date of termination
and, upon examination and approval, effect its
dissolution or closure and proceed to liquidation.
● Article 59 Where an operational foreign-funded bank
falls into insolvency, the banking regulatory agency of
the State Council shall have the power to issue an order
to suspend its business and clear its liability within a
specified period of time. Where, within the specified
period of time, such a bank recovers its solvency and
intends to resume its business, it shall apply in
writing to the banking regulatory agency of the State
Council for the resumption of its business; where it
fails to recover its solvency when the specified time
limit is due, it shall effect its liquidation.
● Article 60 Where an operational foreign-funded bank is
terminated because of dissolution, closure, abolished
according to law or declaration of bankruptcy, the
liquidation shall be proceeded in accordance with the
relevant laws and regulations of the People's Republic
of China.
● Article 61 Upon completion of its liquidation, an
operational foreign-funded bank shall go through
procedures for cancellation of registration with the
original registration organ within the statutory time
limit.
● Article 68 Where an operational foreign-funded bank
violates these regulations, the banking regulatory
agency of the State Council shall, in addition to the
penalties provided for in articles 63 to 67 of these
regulations, take the following actionsby taking into
account the specific circumstances:
(1) ordering the replacement of the director, senior
executive or any other person directly responsible for
the violation;
(2) giving a warning, where the violation does not
constitute acrime, to the director, senior executive or
any other person directly responsible for the violation,
and imposing a fine of notless than 50,000 yuan and not
more than 500,000 yuan; or
(3) disqualifying the director or senior executive
directly responsible for the violation from holding any
management positionwithin the territory of the People's
Republic of China for a specified time limit or for
life; or prohibiting the director, senior executive or
any other person directly responsible for the violation
from engaging in banking business within the territory
of the People's Republic of China for a specified time
limit or for life.

● Article 69 Where a representative office of a foreign
bank, in violation of these regulations, engages in
operational business activities, the banking regulatory
agency of the State Council shall order it to make
corrections, give a warning, confiscate itsillegal
income, and impose a fine of one to five times the
amount of its illegal income where the illegal income is
more than 500,000 yuan; or impose a fine of not less
than 500,000 yuan and not more than 2 million yuan where
there is no illegal income or the illegal income is less
than 500,000 yuan; where the circumstances are extremely
serious, such representative office shall be closed by
the banking regulatory agency of the State Council;
where a crime is constituted, criminal liability shall
beinvestigated for in accordance with law.

● Article 70 Where a representative office of a foreign bank commits any of the following acts, the banking
regulatory agency of the State Council shall order it to make corrections and give awarning, and impose a fine of
not less than 100,000 yuan and not more than 300,000 yuan; where the circumstances are serious, its chief
representative shall be disqualified from holding the position within the territory of the People's Republic
of China for a prescribed time limit, or the bank the office represents shall be required to replace the chief
representative; where the circumstances are extremely serious, such representative office shall be closed by
the banking regulatory agency of the State Council:
(1) changing the office premises without approval;
(2) failing to submit the required documents to the banking regulatory agency of the State Council; or
(3) violating these Regulations or other requirements prescribed by the banking regulatory agency of the State
Council.

● Article 71 Where a foreign-funded bank violates other laws and regulations of the People's Republic of China,
the case shall be dealt with by the relevant competent organs according to law.

Chapter VII Supplementary Provisions

● Article 72 These regulations apply mutatis mutandis to the banking institutions established in the Chinese
mainland by financial institutions from the Hong Kong Special Administrative Region, the Macao Special
Administrative Region, or Taiwan region.However, if otherwise specially provided by the State Council, those
provisions shall prevail.

● Article 73 These regulations shall be effective as of December 11, 2006. The Regulations of the People's
Republic of China on Administration of Foreign-funded Financial Institutions promulgated by the State Council
on December 12, 2001 shall be repealed simultaneously.