What regulations govern banking activities in China?

The banking system in China is heavily regulated by a range of laws and regulations. Specifically, the Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures (中華人民共和國中外合資經營企業法) governs the activities of banks in China. This law sets out the legal framework for setting up and operating bank and financial services companies in China. It covers topics such as the formation and management of the joint venture, shareholding structure, business operation and dissolution, and foreign exchange regulations. In addition to the China Business Ventures Law, the Regulation on the Administration of Foreign-funded Banks (中華人民共和國外資銀行管理條例) provides specific regulations for the establishment, operation and supervision of foreign-funded banks. This regulation outlines the requirements and procedures for setting up a foreign-funded bank, such as capital requirements, qualifications of personnel, organization structure, and compliance with foreign exchange regulations. The People’s Bank of China (PBC) is the central bank and regulatory body of the banking system in China. The PBC sets out regulations to ensure the soundness of the financial system, and monitors compliance with the relevant laws and regulations. It regularly publishes directives and notices to update the banking regulations. It also supervises the activities of commercial banks, including the establishment of branches and subsidiaries. In addition, the PBC also serves as the clearing house for interbank transactions.

What regulations govern banking activities in China?

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