Decision of the standing committee of the National peoples congress on Amending the law of the peopl

Article 35 before granting a loan， ability to repay the loan， method of repayment， etc.

　　When granting a loan commercial banks shall implement the system of separating the examination of a loan from the actual provision of the loan and the system of examination and approval at different levels.

　　Article 36 to obtain a loan from a commercial bank， a borrower shall provide a guaranty. The commercial bank shall strictly examine the surety's ability to repay the loan， the ownership and value of the mortgage or the collateral and the feasibility of realizing the right of mortgage or right of pledge.

　　If， after examination and appraisal by a

commercial bank， a borrower's credit is found to be good， and the borrower is deemed truly able to repay the loan， the borrower need not provide a guaranty.

　　Article 37 for granting a loan， the commercial bank shall conclude a written contract with the borrower. The contract shall stipulate the type， purpose， amount and interest rate of the loan， the time limit for repayment， the method of repayment， liability for breach of contract and other matters deemed necessary by the parties.

　　Article 38 commercial banks shall determine loan interest rate in accordance with the upper and lower limits for loan interest rates prescribed by the people's bank of china.

　　Article 39 when granting a loan， commercial banks shall abide by the following provisions on the control of assets-liabilities ratios：

　　（1）the capital adequacy ratio may not be lower than 8 percent；

　　（2）the ratio of the outstanding of loans to the outstanding of deposits may not exceed 75 percent；

　　（3）the ratio of the balance of floating assets to the balance of floating liabilities may not be lower than 25 percent；

　　（4）the ratio of the outstanding of loans granted to the same borrower to the balance of the capital of the commercial bank may not exceed 10 percent； and

　　（5）other provisions of the banking regulatory authority under the state council concerning the control of assets-liabilities ratios.

　　If， after the implementation of this law， the assets -liabilities ratios of a commercial bank established prior to the implementation of this law are found not in conformity with the provisions of the preceding paragraph， the bank shall make it conform to the provisions of the preceding paragraph within a certain time limit. The specific measures therefor shall be formulated by the state council.

　　Article 40 commercial banks may not grant fiduciary loans to their connections. The conditions for granting secured loans to their connections may not be more preferential than those for granting the same type of loans to other borrowers.

　　For the purposes of the preceding paragraph， the term “connections ”means：

　　（1）directors supervisors， administrators and loan officers of the commercial bank and close relatives of such persons；

　　（2）companies， enterprises and other economic organizations in which the persons mentioned in the preceding paragraph have invested or in which they hold senior administrative positions.

　　Article 41 No unit or individual may forcibly demand a commercial bank to grant a loan or to provide a guaranty， commercial banks shall have the right to refuse to grant a loan or to provide a guaranty forcibly demanded by any unit or individual.

　　Article 42 Borrowers shall repay the loan principal and the interest thereon on schedule.

　　If a borrower fails to repay a secured loan upon maturity， the commercial bank shall lawfully have the right to require the surety to repay the loan principal and the interest thereon or the right to preferential compensation in respect of the collateral. Immovable property or stock rights obtained by a commercial bank through the exercise of the right of mortgage or the right of pledge shall be disposed of by it within two years from the date it obtains the same.

　　If a borrower fails to repay a fiduciary loan upon maturity， the shall bear liability in accordance with the provisions of the contract.

　　Article 43 No commercial banks may， within the territory of the people's republic of china， engage in trust investment or securities business， or incest in immovable property which is not for private use， in non-banking financial institutions or in enterprises， except where other wise provided for in the regulations of the state.

　　Article 44 when handling matters of settlement such as acceptance or remittance of negotiable instruments or entrusted receipt of payment， etc.， comm

ercial banks shall encash the instruments and enter receipts and expenditures in their accounts within the specified time limits， and may not deliberately delay or withhold payment of bills and negotiable instruments or reject negotiable instruments in violation of regulations， Regulations relating to the time limits for encashing of instruments and entering of receipts and expenditures in the accounts shall be announced.

　　Article 45 to financial bonds or to raise loans from outside the people's republic of china， commercial banks shall first submit applications for approval in accordance with the provisions of laws and administrative rules and regulations.

　　Article 46 inter-bank lending shall be carried out in adherence to the regulations of the people's Bank of china. It is forbidden to use such loans for granting fixed assets loans or making investment.

　　Funds lent under such loans shall be limited to idle funds that remain after a sufficient reserve against deposit has been retained， sufficient provision for payment has been made and matured loans from the people's bank of china have been repaid. Funds borrowed under such loans shall be used to make up deficiencies in the settlement of negotiable instruments and in the funds available for covering remittance differences with correspondent banks and to meet the temporary need for working capital.

　　Article 47 commercial banks may not raise or lower interest rates in violation of regulations or use other improper means to take in deposits or grant loans.

　　Article 48 Enterprises and institutions may select for themselves the place of business of a commercial bank where to open a basic account for the day-day settlement of account transfers and for cash receipts and payments. They may not open more than one basic account.

　　No unit or individual may open an account in the name of an individual to deposit the funds of a unit therein.

　　Article 49 the business hours of commercial banks shall be such as to be convenient to clients and shall be announced. Commercial banks shall carry out business during announced business hours； they may not suspend business or shorten their business hours without authorization.

　　Article 50 in carrying out business operations and providing services， commercial banks shall charge commissions in accordance with relevant regulations. The items and rates for such commissions shall be specified by the banking regulatory authority under the state council and the people's bank of china based on their division of responsibilities， in conjunction with the department of pricing under the state council respectively.

　　Article 51 commercial banks shall preserve their financial and accounting statements， business contracts and other materials in accordance with relevant regulations of the state.

　　Article 52 Employees of commercial banks shall abide by laws and administrative rules and regulations for the control of business operations they may not：

　　（1）use their positions to demand， receive or accept bribes， or receive or accept rebates or commissions of any description in violation of state regulations；

　　（2）use their positions to embezzle， misappropriate or seize money belonging to the bank or any client；

　　（3）practise favoritism towards relatives or friends in granting loans or providing guaranty in violation of regulations；

　　（4）hold concurrent position in another economic organization； or

　　（5）commit other acts in violation of laws administrative rules and regulations or other regulations for the control of business operations.

　　Article 53 No employees of commercial banks may disclose state or business secrets that they come to know during their employment.

　　Chapter V

　　Financial affairs and accounting

　　Article 54 commercial banks shall establish and perfect their own financial and accounting sys

tems in accordance with laws， the uniform accounting system of the state and relevant regulations of the banking regulatory authority under the state council.

　　Article 55 commercial banks shall， in accordance with relevant state regulations， truthfully record and give a complete account of their business activities and financial position， draw up annual financial and accounting reports and， without delay， submit them to the banking regulatory authority under the state council， the people's bank of china and the department of finance under the state council， commercial banks may not establish any account books in addition to statutory account books.

　　Article 56 within three months after the end of every fiscal year， commercial banks shall announce their business results and audit reports for that year in accordance with the regulations of the banking regulatory authority under the state council.

　　Article 57 commercial banks shall， in accordance with relevant state regulations make allocations to a doubtful account reserve， in order to set off doubtful accounts.

　　Article 58 the fiscal year of commer

┨网页设计特效库┠ http://www。z┗co⊙l。com/网页特效/