What laws apply to the operation of banks and financial institutions in China?

Under Chinese law, the operation of banks and financial institutions is governed by a combination of laws and regulations issued by the China Banking Regulatory Commission (CBRC) and the People’s Bank of China (PBOC). In order to operate legally, a bank or financial institution must register and obtain a license from the CBRC. Banks must also comply with CBRC regulations that cover areas such as financial instruments and activities, risk management, capital adequacy, liquidity, and customer protection. In addition to CBRC regulations, banks and financial institutions must also comply with PBOC directives and regulations. These cover a range of areas such as bank operations, currency issuance, and loan regulations. Banks are also required to maintain a minimum capital adequacy ratio to ensure the safety of the financial system. Finally, the Anti-Money Laundering Law of 2007 requires banks and financial institutions to set up anti-money laundering controls and reporting systems. This law is designed to prevent the abuse of the financial system by criminals and terrorists. In summary, banks and financial institutions operating in China must comply with a range of laws and regulations issued by the CBRC, the PBOC, and the Anti-Money Laundering Law. These laws and regulations are designed to ensure the safety and soundness of the financial system and protect the rights and interests of customers.

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What laws apply to the operation of banks and financial institutions in China?

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