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

China is subject to a variety of laws that apply to the operation of banks and financial institutions within the country. The primary laws governing banking and financial institutions in China are the PRC Commercial Bank Law, the PRC Banking Regulatory Law, and the PRC Financial Regulatory Law. The PRC Commercial Bank Law is applicable to all commercial banks in China and sets out the licensing process for establishing banks, the rights and duties of banks, as well as the management of banks’ financial resources. The PRC Banking Regulatory Law establishes the framework for banking supervision and regulation in China. It sets out the rules for banks’ capitalization, risk management, and external operations. The law also outlines the qualifications expected of banking officers and management and the responsibilities and powers of the Chinese Central Bank. The PRC Financial Regulatory Law regulates non-bank financial institutions, such as insurance companies, securities firms, and fund-management firms. The law sets out the registration requirements for such firms, their risk-management processes, and the capital adequacy of such firms. In addition to these national laws, there are regulations and other rules that must be complied with when operating a bank or financial institution in China. These include regulations on anti-money laundering and combatting the financing of terrorism as well as guidelines for credit card services and the China UnionPay system. These regulations must be observed in order for banks and financial institutions to operate legally in China.

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

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