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

ions and responsibilities and exercise unified leadership and administration with respect to its branches.

　　The branches of the people's bank of china shall play an important role in the state macro-control and the formulation and adjustment of monetary policies.

　　Article 14 the governor， deputy governors and other staff members of th

e people's bank of china shall safeguard state secrets according to law and be obligated to safeguard the secrets of the banking institutions and parties involved in the fulfillment of their functions and responsibilities.

　　Article 15 the Governor Deputy Governors and other staff members of the people's bank of china shall safeguard state secrets according to law and be obligated to safeguard the secrets of the banking institutions and parties concerned with their implementation of their functions and responsibilities.

　　Chapter III

　　The Renminbi

　　Article 16 the legal tender of the people's republic of china is the Renminbi（RMB）。 When Renminbi is used to repay all public or private debts within the territory of the people's republic of china， no units or individuals may refuse to accept it.

　　Article 17 the unit of the renminbi is the yuan and the units of the fractional currency of the renminbi are the jiao and the fen.

　　Article 18 the renminbi shall be printed and issued solely by the people's bank of china.

　　When putting forth a new Renminbi issue the people's bank of china shall make known to the public the issuing date， face values， designs， patterns and specifications.

　　Article 19 If is prohibited to counterfeit or alter Renminbi. If is prohibited to sell or purchase counterfeit or altered renminbi. If is prohibited to transport hold or use counterfeit or altered renminbi. If is prohibited to deliberately destroy or damage the renminbi. If is prohibited to illegally use the parttens of renminbi in propaganda materials， publications or other commedities.

　　Article 20 no units or individuals may print or sell promissory notes as substitutes for tenminbi to circulate on the market.

　　Article 21 the damaged or soiled Renminbi shall be exchanged in accordance with the regulations of the people's Bank of china， which shall also be responsible to recall and destroy such Renminbi.

　　Article 22 the people's Bank of china shall establish a renminbi issue treasuries at its branches. The subsidiary issue treasuries shall， in allocating renminbi issue fund， act on the order of allocation from their superior treasury. No units or individuals may use the issue fund in violation of regulations.

　　Chapter IV

　　Business operations

　　Article 23 to implement monetary policies the people's Bank of china may apply the following monetary policy instruments：

　　（1）to require a financial institution of the banking industry to place a deposit reserve at a prescribed ratio；

　　（2）to fix the base interest rates for the central bank；

　　（3）to handle rediscount for financial institutions of the banking industry that have opened accounts in the people's Bank of china；

　　（4）to provide loans for commercial banks；

　　（5）to deal in state bonds other government bonds， and financial bonds and foreign exchange， on the open market； and

　　（6）other monetary policy instruments decided by the state council.

　　Where applying the monetary policy instruments listed in the preceding paragraph to implement monetary policies， the people's bank of china may work out specific requirements and procedures.

　　Article 24 the people's bank of china shall manage he state treasury in accordance with laws and administrative rules and regulations.

　　Article 25 the people's band of china may， on behalf of the financial department under the state council， issue to financial institutions， and honour state bonds and other government bonds.

　　Article 26 the people's Bank of china may open accounts for financial institutions of the banking industry as needed， but may not allow them to overdraw.

　　Article 27 the people's Bank of china shall organize or assist in organizing a clearing system among financial institutions of the banking industry coordinate the efforts of such institutions in

matters of clearing and provide services in this regard. The specific measures therefor shall be formulated by the people's Bank of china.

　　The people's Bank of china shall， in conjunction with the banking regulatory authority under the state council， formulate regulations on payment and clearing.

　　Article 28 The people's Bank of china may， as required by the implementation of monetary pollicies， determine the amounts term， interest rates and forms of loans of loans extended to commercial banks， however， the maximum terms of loans shall not exceed one year.

　　Article 29 the people's Bank of china may not make an overdraft for the government， and may not directly subscribe or underwrite state bonds or other government bonds

　　Article 30 the people's Bank of china may not provide loans to the local governments or government departments at various levels， to non-banking institutions， other units or individuals， with the exception of the specific non-banking institutions as decided by the state council.

　　The people's Bank of china may not provide guaranty for any unit or individual.

　　Chapter V

　　Financial supervision and control

　　Article 31 the people's Bank of china shall， in accordance with law， monitor the operation of the financial markets， conduct macro-control of such markets promote their coordinated development.

　　Article 32 the people's bank of china shall have the power to inspect and supervise the following activities of the financial institutions and other units and individuals：

　　（1）implementation of the regulations for control of deposit reserve；

　　（2） activities related to the special loans of the people's Bank of china；

　　（3）implementation of the regulations for control of renminbi；

　　（4）implementation of the regulations for control of the inter-bank lending market and the inter-bank bond market；

　　（5）implementation of the regulations for control of foreign exchange；

　　（6）implementation of the regulations for control of gold；

　　（7）management of the state treasury on behalf of the people's Bank of china；

　　（8）implementation of the regulations for control of clearing； and

　　（9）implementation of the regulations against money laundering.

　　The special loan mentioned in the preceding paragraph are loans granted， upon decision by the state council， by the people's Bank of china for special purposes.

　　Article 33 the people's Bank of china may， according to the need to implement monetary policies and maintain financial stability， propose that the banking regulatory authority under the state council inspect and supervise the financial institutions of the banking industry. The said authority shall， within thirty days from the date it receives the proposal， make a reply.

　　Article 34 when financial institutions of the banking industry have difficulties in making payment that may trigger off financial risks， the people's Bank of china shall， with a view to maintaining financial stability， have the power to inspect and supervise the financial institutions with the approval of the state council.

　　Article 35 the people's Bank of china shall， according to the need to fulfill its functions and responsibilities， have the power to demand the financial institutions of the banking industry to submit the necessary balance sheets， statements of profit and other financial and accounting reports， statistical reports and information.

　　The people's bank of china the banking regulatory authority under the state council and the other financial regulatory institutions under the state council shall establish a mechanism to share supervisory information.

　　Article 36 the people's Bank of china shall be responsible for compiling unified statistics and accounting statements from the national banking system and shall publish them in accordance with rel

evant regulations of the state.

　　Article 37 the people's Bank of china shall establish and perfect system for its own examination and inspection and strengthen its own supervision and administration.

　　Chapter VI

　　Financial Affairs and Accounting

　　Article 38 the people's Bank of china shall exercise independent control over its financial budged.

　　The budget of the people's Bank of china shall be incorporated in the central budget after it has been examined and verified by the financial department under the state council and the implementation thereof shall be subject to supervision of the financial department under the state council.

　　Article 39 the people's Bank of china shall， after withdrawing funds for its general reserve at a proportion determined by the financial department under the state council， turn over to the state treasury the entire net profit remaining from its income in an accounting year minus its expenditures in the same period.

　　Losses sustained by the people's Bank of china shall be made up by appropriations from the state treasury.

　　Article 40 the financial receipts and payments and accounting affairs of the people's Bank of china shall be governed by laws， administrative regulations and unified state financial and accounting systems and be subject to the auditing and supervision conducted， in accordance with law， separately

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