金融机构管理规定 Peoples Bank of China, Administration of Financial Institutions Provisions

　　Article 18　Preparations for the establishment of a financial institution may be made only after the application for preparations for the establishment has been approved. The time limit for preparations for establishment shall be six months. The original approval documents shall automatically become void where the standards for commencement of business are not met within the time limit for preparations for establishment. Under special circumstances， the time limit may be appropriately extended by up to one year， subject to the approval of the People's Bank of China. No financial business activities may be engaged in during the period of preparations for establishment.

　　Article 19　After preparations for the establishment of a financial institution have been completed， an application for approval of commencement of business shall be submitted to the People's Bank of China， together with three copies of the following materials：

　　1. an application for approval of the commencement of business；

　　2. an investment verification certificate issued by an accounting firm or relevant work unit recognized by the People's Bank of China， a photocopy of the original voucher for entry into the account of the capital or operating funds， background information on the investors， a balance sheet and an accountant's report；

　　3. the names and resumes of the legal representative and primary responsible persons to be appointed；

　　4. documents on the ownership of or the right to use the business site；

　　5. the Articles of association， which shall cover the name and business address of the institution， the type， purposes of business， amount of registered capital or operating funds， scope of business， form of organization， operation， management， termination and liquidation of the institution； and

　　6. other materials that the People's Bank of China requires to be submitted.

　　Article 20　Within 30 days of receiving documents concerning an application for approval of the commencement of business， the People's Bank of China shall notify the applicant in writing of whether or not its application ha

s been approved. Where the application is not approved， the reason therefor shall be stated in the written notification.

　　Article 21　A financial institution that has obtained approval for commencement of business shall carry out registration procedures with the administration for industry and commerce on the strength of the approval documents and obtain a Permit of a Financial Institution With the Status of a Legal Person or a Business Permit of a Financial Institution on the strength of the business license issued by the administration for industry and commerce and the approval documents issued by the People's Bank of China； financial institutions that are to engage in foreign exchange business shall additionally apply for and obtain a Permit for Engaging in Foreign Exchange Business in accordance with regulations. Business may be commenced only after the above-mentioned procedures have been completed.

　　Article 22　Financial institutions must commence business within 90 days of obtaining a permit. Where business is not commenced within such time limit， the original approval documents shall automatically become void and the People's Bank of China shall recover the permit， except in the case that business is commenced after expiration of the time limit as a result of force majeure， subject to approval of the People's Bank of China.

　　Article 23　The establishment of financial institutions upon approval shall be exclusively announced to the public by the People's Bank of China in a designated newspaper. The costs of announcements shall be borne by the financial institutions that are the subject of such announcements.

　　PART FOUR　ADMINISTRATION OF PERMITS

　　Article 24　The Permit of a Financial Institution With the Status of a Legal Person or the Business Permit of a Financial Institution shall be the legal supporting document for a financial institution's engagement in financial business. Such permit may be issued， confiscated or revoked by the People's Bank of China according to law， but may not be issued， confiscated or revoked by any other work unit or by any individual.

　　Article 25　Permits of a Financial Institution With the Status of a Legal Person and Business Permits of a Financial Institution shall be exclusively designed and printed by the Head Office of the People's Bank of China.

　　Article 26　Permits of a Financial Institution With the Status of a Legal Person and Business Permits of a Financial Institution shall consist of an original and a duplicate and shall specify the name， number， type and form of enterprise， amount of registered capital or operating funds， legal representative， primary responsible persons and scope of business of the financial institution， the date of issuance， the term of validity， etc.

　　Article 27　Financial institutions shall place the originals of their Permits of a Financial Institution With the Status of a Legal Person and Business Permits of a Financial Institution in a conspicuous place at their business sites and shall properly keep and take proper care of the duplicates thereof for future inspection. Forgery， alteration， leasing， lending， assignment or sale of permits is prohibited. Permits may not be photocopied without the approval of the People's Bank of China.

　　Article 28　The People's Bank of China shall charge financial institutions a certain fee for the issuance or replacement of permits in accordance with regulations.

　　Article 29　A Permit of a Financial Institution With the Status of a Legal Person or a Business Permit of a Financial Institution shall be renewed once every three years. Where a permit is lost or seriously damaged， it shall be declared void in a national newspaper within 15 days of discovery， and an application for a new permit shall be made to the People's Bank of China on the strength of an inspection report and the announcement published in a newspaper.

　　PART FIVE　ADMINI

STRATION OF CAPITAL OR OPERATING FUNDS

　　Article 30　The monetary capital of a financial institution must be entered into the account and paid up in accordance with the regulations of the People's Bank of China.

　　Article 31　The qualifications and number of shareholders as well as shareholding structure of financial institutions shall comply with the regulations of the People's Bank of China.

　　Article 32　The source of the capital or operating funds of a financial institution shall be the self-owned funds whose investors have the right to control them. Financial institutions may not use borrowed funds or creditor's rights as capital.

　　Article 33　No branch established by a financial institution may have the status of a legal person. A branch shall possess the prescribed amount of operating funds. The operating funds of a branch shall be allocated by its head office from its capital or common reserves. The total amount of cumulative allocation may not exceed 60 per cent of the capital of the head office.

　　Article 34　The capital or operating funds of financial institutions must be genuine and sufficient.

　　PART SIX　INSPECTION OF THE QUALIFICATIONS OF LEGAL REPRESENTATIVES AND PRIMARY RESPONSIBLE PERSONS FOR THEIR POSITIONS

　　Article 35　The People's Bank of China shall implement a system of inspection of the qualifications of the legal representatives and primary responsible persons of financial institutions for their positions.

　　Article 36　The appointment or removal of or changes in respect of the legal representatives and primary responsible persons of a financial institution shall be reported in advance to the People's Bank of China for inspection of the qualifications for their positions in accordance with the limits of authority to examine and approve financial institutions.

　　The board of directors or executive department of a financial institution may not carry out appointment or removal procedures for anyone whose qualifications for his position have not been inspected by the People's Bank of China or who has failed an inspection.

　　Article 37　The methods of inspection by the People's Bank of China of the qualifications of the legal representatives and primary responsible persons of a financial institution for their positions shall include the following：

　　1. inspection of their résumés and relevant materials；

　　2. interview； and

　　3. acquisition of an understanding of the relevant circumstances.

　　Article 38　The qualifications of the legal representatives and primary responsible persons of a financial institution for their positions shall be determined by the Head Office of the People's Bank of China.

　　PART SEVEN　CHANGES IN RESPECT OF A FINANCIAL INSTITUTION

　　Article 39　Any of the following changes in respect of a financial institution shall be reported in advance to the People's Bank of China for approval and amendment procedures shall be carried out：

　　1. an increase or reduction in the amount of registered capital or operating funds， adjustment of the shareholding structure and form of equity， and assignment of equity；

　　2. restructuring into a limited liability company or a company limited by shares；

　　3. adjustment of the scope of business；

　　4. replacement of the legal representative or primary responsible persons；

　　5. a change of the name；

　　6. division or merger of the organization；

　　7. amendment of the articles of association；

　　8. a change in the business address； or

　　9. any other change t

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