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

cial banks shall commence on January and on December 31the Gregorian calendar.

　　Chapter VI

　　Supervision and control

　　Article 59 Commercial bands shall， in accordance with relevant regulations， formulate their own operating rules， and establish and perfect their systems for risk management and internal control.

　　Article 60 commercial banks shall establish and perfect their own systems for examination and inspection of deposits， loans， settlements， doubtful accounts， etc.

　　Commercial banks shall conduct routine examination， inspection and supervision with respect to their branches.

　　Article 61 commercial banks shall， in accordance with relevant regulations， submit to the banking regulatory authority under the state council and the people's bank of china their balance sheets， profit accounts and other financial， accounting and statistical statements and information.

　　Article 62 the banking regulatory authority and information council shall have the right at any time to carry out inspection of and exercise supervision over， the deposits， loans， settlements， doubtful accounts， etc. of commercial banks， in accordance with the provisions of chapters III， IV and V this law. When carrying out inspection and supervisions， the inspectors and supervision shall produce their lawful identification papers. commercial banks shall provide financial and accounting information， business contracts and other information concerning operation and management in compliance with the requirements of the banking regulatory authority under the state council.

　　The people's bank of china shall have the power to inspect and supervise the commercial banks in accordance with the provisions of articles 32 and 34 of the law of the people's Republic of china on people's bank of china.

　　Article 63 commercial banks shall according to law， accept supervision by audit institutions through auditing.

　　Chapter VII

　　Assumption of control and Termination

　　Article 64 when a commercial bank has suffered or will possibly suffer， credit crisis， thereby seriously affecting the interests of the depositors， the banking regulatory authority under the state council may assume control over the bank.

　　The purposes of assumption of control are， through taking such measures as are necessary in respect of the commercial bank over which control is assumed， to protect the interests of the depositors and to enable relationship bank to resume normal business. The debtor-creditor relationship with regard to a commercial bank over which control is assumed shall not change as a result of the assumption of control.

　　Article 65 the assumption of control shall be decided upon， and its implementation shall be arranged， by the banking regulatory

authority under the council. In the decisions made by the banking regulatory authority under the state council to assume control shall be clearly stated the following particulars：

　　（1）the name of the commercial bank over which control is to be assumed；

　　（2）the reason for the assumption of control；

　　（3）the organization that shall assume control； and

　　（4）the period or time for the control.

　　The decision for the assumption of control shall be announced by the banking regulatory authority under the state council.

　　Article 66 control shall be assumed on the date of implementation of the decision to assume control.

　　Beginning on the date of assumption of control， the organization assuming control shall exercise the powers operation and management of the commercial bank.

　　Article 67 the banking regulatory authority under the state council may decide to extend the period of time for control upon expiration of the time specified. However， the maximum period of time for control shall be two years.

　　Article 68 the control shall be terminated under one of the following conditions：

　　（1）when the period of time specified in the decision for control has expired or the extended period of time for control decided upon by the banking regulatory authority under the state council has expired；

　　（2）the commercial bank has already become able to resume normal business before expiration of the period of control； or

　　（3）the commercial bank is merged or is lawfully declared bankrupt before expiration of the period of control.

　　Article 69 if a commercial bank has to be dissolved as a result of division， merger or the occurrence of a cause for dissolution as specified in the company's articles of association， it shall submit to the banking regulatory authority under the state council an application for dissolution， which is to be accompanied with a statement of the reasons for dissolution and a plan for settlement of debts such as repaying of the principal of the deposits together with the interest thereon. the commercial bank shall be dissolved upon approval by the banking regulatory authority under the state council.

　　If a commercial bank is to be dissolved， a liquidation team shall be established pursuant to law. The team shall in accordance with the plan for settlement of debts， carry out liquidation and without delay pay debts such as the principal of the deposits and the interest thereon. The banking regulatory authority under the state council shall supervise the process of liquidation.

　　Article 70 if a commercial bank is to be dissolved because its permit for operation is revoked， the banking regulatory authority under the state council shall without delay arrange to establish a liquidation team pursuant to law， which shall， in accordance with the plan for settlement of debts， carry out liquidation and without delay pay debts such as the principal of the deposits and the interest thereon.

　　Article 71 if a commercial bank is unable to pay its debts as they fall due， a people's court shall， after obtaining consent of the banking regulatory authority under the state council， lawfully declare it bankrupt， if a commercial bank is declared bankrupt， the people's court shall arrange for relevant authorities， such as the banking regulatory authority under the state council， and relevant persons to establish a liquidation team， which shall carry out liquidation.

　　When liquidation is carried out after a commercial bank is declared bankrupt， payment of the principal of savings deposits of individuals and the interest thereon shall be given priority after the liquidation expenses， the wages owed to the employees and labor insurance premiums have been paid.

　　Article 72 commercial banks shall terminate if dissolved closed down or declared bankrupt.

　　Chapter VIII

　　Legal responsibility

　　Article 73 commercial bank shall assume liability for payment of default interest and other civil liability if the property of depositors or other clients is damaged as a result of the commercial bank's：

　　（1）delay in or refusal of payment of the principal of a deposit and the interest thereon without good reason；

　　（2）violation of regulations concerning matters of settlement such as acceptance of negotiable instruments， etc. by refusing to encash the instruments， refusing to enter receipts and expenditures in its accounts， deliberately delaying or withholding payment under bills or negotiable instruments， or rejecting negotiable instruments in violation of regulations；

　　（3）illegal inquiries into， freezing， withholding or transfer of the savings deposits of individuals or the deposits of units； or

　　（4）other acts in violation of this law that cause damage to depositors or other clients.

　　If a commercial bank commits one of the acts specified in the preceding paragraph， it shall be instructed by the banking regulatory authority under the state council to rectify and its unlawful gains shall be confiscated， if the unlawful gains exceed 50，000 yuan， it shall， in addition， be fined not less than the amount of such gains but not more than five times that amount； and if there are no unlawful gains or such gains are less than 50，000 yuan， it shall be fined not less than 50，000 yuan but not more than 500，000 yuan.

　　Article 74 if a commercial bank commits one of the following acts， it shall be instructed by the banking regulatory authority under the state council to rectify； if there are unlawful gains， such gains shall be confiscated， if the unlawful gains exceed 500，000 yuan， it shall， in addition， be fined not less than the amount of such gains but not more than five times that amount； if there are no unlawful gains such gains are less than 500，000 yuan， it shall be fined not less than 500，000 yuan but not more than 2，000，000 yuan； if the circumstances are particularly serious， or if the bank fails to rectify at the expiration of the time limit， the banking regulatory authority under the state council may instruct it to suspend business for rectification or may revoke its business license， and if a crime is constituted， criminal responsibility shall be investigated according to law：

　　（1）establishing a branch without approval；

　　（2）dividing or merging without approval or， in violation of relevant regulations， failing to report for approval changes to be made；

　　（3）raising or lowering interest rates in violation of relevant regulations or taking in deposits or loans by other illegitimate means；

　　（4）leasing out or lending its business license；

　　（5）buying and selling， or acting as an agent for the purchase and sale of， foreign exchange without approval；

　　（6）buying or selling government bonds or issuing， buying or selling financial bonds with

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