Law of the Peoples' Republic of China on Banking Regulation and Supervision (2003)

Publication Date: 27 Dec 2003
Published by: Government of the People's Republic of China
Document Type: Other (PDF)

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The Law of the People’s Republic of China on Banking Regulation and Supervision adopted in 2003.

This law on banking regulation and supervision was adopted at the sixth session of the Standing Committee of the Tenth National People’s Congress on December 23, 2003, in China.

The law is divided into the following six chapters:

• General provisions;
• The Banking Regulatory Authority;
• Regulatory and supervisory responsibilities;
• Supervisory methods and procedures;
• Legal liability;
• Supplementary provisions.

Chapter 1 states the purpose of the law:

• To improve banking regulation and supervision;
• To standardize banking supervisory process and procedures;
• To prevent and mitigate financial risks in the banking industry;
• To protect the interests of depositors and other customers;
• To promote a safe and sound banking industry in China.

The chapter also highlights the responsibilities of the banking regulatory authority and the protection that it enjoys.

Chapter 2 describes the functions of the banking regulatory authority, the qualifications and duties of its staff, and the cooperation that all government departments must extend to it.

Chapter 3 explains the regulatory and supervisory duties of the banking regulatory authority, highlighting its responsibility to authorize the establishment, changes, termination, and business scope of banking institutions.

Chapter 4 describes supervisory methods and procedures that the banking regulatory authority can use to perform its responsibilities, including the list of documents and reports that banks have to submit for this purpose.

Chapter 5 outlines the administrative sanctions that the supervisory staff of the banking regulatory authority will be subject to if they violate certain rules.