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

Operating a bank or financial institution in China is subject to a number of laws. The Chinese Company Law of 1993 regulates the establishment and operations of Chinese companies, including banks and financial institutions. The Banking Law of 1995 and Insurance Law of 1996 both provide further regulations for the banking and financial sector. The Securities Law of 1998 also applies to banks and financial institutions, as do the laws regulating auditing, accounting, and tax collection. In addition, the People’s Bank of China (PBOC) regulates the currency and capital markets, sets the reserve requirements for banks, and provides direction on interest rates. The PBOC also oversees the operations of banks and financial institutions, with the aim of ensuring their soundness and stability. Further oversight over the banking and financial sector is provided by the China Banking Regulatory Commission (CBRC) and the China Insurance Regulatory Commission (CIRC), both of which have authority to issue regulations and conduct inspections and investigations. The Total Asset Management Regulations of 1999 ensure that financial institutions maintain solvency and promote prudent financial management. The Regulations on Subprime Lending of 2010 also regulate the operations of banks and other financial institutions, and require certain standards for the management of their subprime lending activities. All of these laws combine to provide a framework for the operation of banks and financial institutions in China.

Related FAQs

What are the restrictions on foreign investment in China?
How does Chinese law define and regulate the transfer of patents and other intellectual property rights?
What are the labour laws applicable to the employment of foreign workers in China?
What is the legal process for registering a company in the Shanghai Free Trade Zone?
What laws apply to the import and export of goods in China?
Can I hire foreign consultants to provide services in China?
What is the legal framework for setting up a foreign-invested enterprise in China?
What are the taxes that apply to business ventures in China?
Are there any restrictions on the repatriation of dividends from Chinese companies?
What laws govern the sale and distribution of products in China?

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

Related FAQs

Related Blog Posts