Measures of Financial License Control

Decree of China Banking Regulatory Commission

[2003] No. 2

Article 1 These measures are formulated in accordance with relevant
provisions and laws such as the Commercial Bank Law of the People's
Republic of China and the Regulations of the People's Republic of
China Governing Financial Institutions with Foreign Capital for the
purpose of strengthening the admittance management of the financial
institutions and pushing forward financial institution's legal
operations.

Article 2 Financial License refers to the legal papers issued by
China Banking Regulatory Commission (hereafter referred to as CBRC)
to allow financial institutions to deal with financial operations.
The issuing, changing, detaining, withdrawing shall be conducted by
CBRC according to relevant laws and provisions, any other units and
individuals shall not exert any activities mentioned herein.
Article 3 Financial license only applies to those institutions whose
financial operations have been approved and those under the
supervision of CBRC.
Financial institutions herein refers policy banks, commercial banks,
finance capital management corporations, Credit Cooperatives, Post
services, trust funds investment companies, finance companies of
corporation group, monetary leasing companies, financial
institutions of foreign investment and so on.
Article 4 When considering the financial license, CBRC adheres to
such management principals as delegating the right at different
level, moderately separate the right for institution examination
with right for issuing the license.
(I) CBRC shall be responsible for the issuing and management of the
financial license of those financial entity institutions under the
direct supervision of CBRC (policy banks, state solely – owned
commercial banks, joint – stock commercial banks, financial capital
management corporation, trust fund investment companies, finance
companies of corporation group, monetary leasing companies and so
on); CBRC shall be responsible for the issuing and management of the
financial license of foreign capital financial institutions as
foreign banks and their branches, joint – venture banks and their
branches, branches of foreign banks, foreign finance companies, and
joint – venture finance companies and so on.
(II) CBRC bureaus at the provincial ( autonomous region,
municipality directly under the Central Government) level and
bureaus directly under CBRC shall be responsible for the issuing and
management of the financial license of the following financial
institutions: 1, policy-related banks, state solely-owned commercial
bank (including branches out side the territory) within the
territory; 2, branches of financial capital management companies
(offices); 3, city commercial bank entity institutions and their
branches; 4, institutions below the level of foreign capital bank''s
branches (branches exclusive); 5, other financial institutions and
their branches other than such financial institutions under direct
supervision of CBRC as trust fund investment companies, finance
companies of corporation group, monetary leasing companies; 6, city
credit cooperatives, rural credit cooperatives (provincial level and
county level), entity institutions for rural commercial banks ;7,
outlets of the financial institutions in one area..
(III) CBRC bureaus at county level shall be responsible for the
issuing and management of other financial institutions rather than
those mentioned herein.
Article 5 Financial institutions shall, within 60 days from the date
of receiving a certificate of approval form CBRC, come to CBRC and
its representative offices to obtain or change a financial license
with the following documents:
(I) a certificate of approval form CBRC or its representative
offices;
(II) financial institution''s recommendation letter;
(III) legal and effective identity certificate of the person who
obtains the license;
(IV) other documents required by CBRC and or its representative
offices.
Article 6 CBRC or its representative offices shall, within 5 working
days from the date of receiving the effective documents, issue the
license.
Article 7 The financial license shall state clearly the following
issues:
(I) code of the institution (see the attachment)
(II) name of the institution (rural credit cooperatives shall
indicate their entity institutions or branch institutions by bracket
)
(III) law and regulations in accordance with;
(IV) date for approving the establishment of the institution;
(V) location for operation;
(VI) date for issuing the license;
(VII) seal of the CBRC or its representative offices.
Article 8 In any of the following circumstances, financial
institutions shall submit the CBRC or its representative offices
application for changing financial license:
(I) change of the name of the institution;
(II) change of the operation location (limited to change of the
liquidation code);
(III) dilapidation of the license;
(IV) loss of the license;
(V) circumstances where CBRC or its representative offices require
the change of the license.
The applicant shall hand over the license in case of change of
institution''s name or change of the operation location to CBRC or
its representative offices and apply for a new license with the
documents as indicated in Article 5 of these measures.
In case of dilapidation, the applicant shall hand over the license
when applying for a new license.
In case of loss, financial institutions shall declare the
invalidation of the lost license in newspaper designated by CBRC or
its representative offices, and apply for new license.
Article 9 In principal, the license code for financial institutions
shall be the same unless in such circumstances as change of the name
of the institution, change of the operation location (limited to
liquidation code), or withdrawal of the license.
In the case of loss or dilapidation, the original code shall
continue to be effective when applying for changing the license.
In the case of withdrawal, the code for the institution shall be
invalidated as of the same date.
Article 10 In case of issuing and changing of the license, financial
institutions shall declare the validation of the new license in
newspaper designated by CBRC or its representative offices, and
apply for new license.
In case of withdrawal and cancellation, financial institutions shall
declare the invalidation of the lost license in newspaper designated
by CBRC or its representative offices, and apply for new license.
Article 11 The declaration shall contain the following information:
name of the institution, operation location, code of the financial
institution, postal code, and telephone number.
Article 12 The financial license shall be put in an obvious place of
the financial institutions. Financial institutions shall introduce
its operations and persons in charge in an obvious place by
appropriate means.
Article 13 Any units and individual shall not forge and change the
financial license. Financial institutions shall not rent, lend or
transfer financial licenses.
Article 14 CBRC and its representative offices shall strengthen the
information management of the financial license, establish
institution management document systems, and publicize information
related to financial license according to relevant laws and
regulations.

Article 15 CBRC shall charge the applicants examination and
registration fees when applicants receive the license and change the
license.

Article 16 In case of any of the following circumstances, CBRC shall
serve a warning, and require correcting within time limit. In case
of failure to correct within the time limit, CBRC may fine an amount
less than 30,000 RMB; but CBRC may also deprive the persons in
charge where serious offenses are committed:
(I) fail to comply with the regulations of getting a license
(II) mangle the financial license;
(III) lose the financial license and fail to report to CBRC
(IV) fail to show the license in the operation location;
(V) forgery, change, leasing, lending, transferring of the license.
Article 17 Any renting, lending, transferring of financial license
shall be penalized under the relevant provisions of the Commercial
Bank Law of the People's Republic of China.

Article 18 Any forgery, changes to the financial license of the
commercial banks will be punished according to the Commercial Bank
Law of the People's Republic of China.

Article 19 The financial license shall be printed and managed by
CBRC. CBRC shall print the financial license according to the
financial license coding system. The license will be in effect when
with the seal of CBRC or its representative offices.
Financial license shall be specially kept as important warrant. The
issuing, printing, keeping of the license as different functions
shall be separated from each other, and the three functions can
counterbalance with each other. And registration systems for
issuing, printing, withdrawing and canceling of the license shall be
established at the same time.
The used license during the issuing process shall be marked as
"useless" and filed as important blank warrant to be destroyed
regularly,

Article 20 The measures shall enter into force as of July 1, 2003.
In case of discrepancy, the Measures of Financial License Control
shall prevail.

Attachment:
Financial Institution License Coding System (omitted)