|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II ORGANIZATION CHAPTER III RENMINBI CHAPTER IV BUSINESS OPERATION CHAPTER V SUPERVISION AND CONTROL OVER THE BANKING INDUSTRY CHAPTER VI FINANCE AND ACCOUNTING CHAPTER VII LEGAL LIABILITIES CHAPTER VIII SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. This Law is hereby formulated for the purpose of establishing the status of the People's Bank of China (PBC), clarifying its functions, ensuring the correct enactment and implementation of the state monetary policies, and establishing and perfecting a macro-control system through the central bank, as well as maintaining the stability of banking industry. Article 2. The PBC is the central bank of the People's Republic of China. As the central bank, the PBC shall formulate and implement monetary policies, prevent and dissolve financial risks, and maintain the stability of banking industry in the country under the leadership of the State Council. Article 3. The aim of monetary policies is to maintain the stability of the value of currency and thereby promote economic growth. Article 4. The PBC shall perform the following functions: (1) Promulgating and implementing orders and regulations in relation to its functions; (2) Formulating and implementing monetary policies in accordance with the law; (3) Issuing Renminbi (RMB) and control its circulation; (4) Supervising the inter-bank borrowing or lending market and inter-bank bonds markets; (5) Administering foreign exchange, and supervising inter-bank foreign exchange market; (6) Supervising gold market; (7) Holding, controlling and managing the state foreign exchange reserve and gold reserve; (8) Managing the state treasury; (9) Maintaining the normal operation of the systems for payments and settlements of accounts; (10) Directing and disposing the anti-money-laundering work of the financial industry, being responsible for capital supervision and measurement over anti-money-laundering; (11) Being responsible for the statistics, investigation, analysis, and forecasting of the financial industry; (12) Undertaking the relevant international banking operations as the central bank of the state; and (13) Other functions assigned to it by the State Council. In order to implement monetary policies, the PBC may carry out financial operations in accordance with the relevant provisions of Chapter IV of this Law. Article 5. The PBC shall report to the State Council its decisions concerning the annual supply of currency, interest rates, foreign exchange rates, and other major issues specified by the State Council for approval before implementation. The PBC shall, after making decisions on matters concerning monetary policies other than those specified in the preceding paragraph, carry them out immediately, and then report them to and put them on record at the State Council. Article 6. The PBC shall submit to the Standing Committee of the National People's Congress a report on monetary policies and the operation of the financial industry. Article 7. The PBC shall, under the guidance of the State Council, independently implement monetary policies, perform its functions and carry out its operations according to law free from any intervention of local governments, departments of governments at all levels, public organizations or individuals. Article 8. All capital of the PBC shall be allocated by the state and owned by the state. Article 9. The State Council shall establish a financial supervision and administration coordination mechanism, and shall formulate the specific measures for it. CHAPTER II ORGANIZATION Article 10. The PBC shall have one governor and a certain number of deputy governors. The governor of PBC shall be nominated by the Premier of the State Council, and affirmed by the National People's Congress for the post. Whereas the National People's Congress is not in session, he or she shall be affirmed by the Standing Committee of the National People's Congress and appointed or removed by the president of the People's Republic of China for the post. The deputy governors of the PBC shall be appointed or removed by the Premier of the State Council. Article 11. The PBC shall institute a system in which the governor assumes the full responsibility. The governor shall direct the work of the PBC and the deputy governors shall assist the governor in his or her work. Article 12. The PBC shall establish a monetary policy committee whose functions, composition and working procedures shall be prescribed by the State Council and reported to and put on records at the Standing Committee of the National People's Congress. The monetary policy committee of the PBC shall play an important role in the state macro-control, and in the formulation and adjustment of monetary policies. Article 13. The PBC shall, upon the need of performing its functions, establish branches as its representative organs, and exercise centralized and unified leadership and control over these branches. The branches of the PBC shall, upon the authorization of the PBC, be responsible for maintaining the stability of financial industry and handling the relevant business operations in the areas under their respective jurisdictions. Article 14. The governor, deputy governors and other staff of the PBC shall be diligent in performing their functions, and may not abuse their power and conduct malpractice for gaining private interests, or hold posts concurrently in any other banking institution, enterprise or foundation. Article 15. The governor, deputy governors and other staff of the PBC shall keep state secrets according to law and have the duty to keep secrets of the banking institutions and the clients in relation to their performance of functions. CHAPTER III RENMINBI Article 16. The legal tender of the PBC is Renminbi (RMB). Renminbi shall be used for repaying all public or private debts according to its face value within the territory of the People's Republic of China, and no organization or individual may refuse to accept. Article 17. The basic unit of Renminbi is Yuan and the units of fractional currency of Renminbi are Jiao and Fen. Article 18. Renminbi shall be printed, minted and issued uniformly by the PBC. When issuing new Renminbi, the PBC shall make a public announcement of the issuing date, face values, designs, patterns and specifications of the new. Article 19. Any counterfeiting, altering or illegal printing or minting of the Renminbi is prohibited. Any selling or buying of the counterfeit or altered Renminbi is prohibited. Transportation, possession or use of the counterfeit, altered or illegally printed or minted Renminbi is prohibited. Deliberate damaging of Renminbi is prohibited. Illegal use of the design of Renminbi in propaganda materials, publications or other commodities is prohibited. Article 20. No entity or individual may print or issue promissory notes as substitutes for Renminbi to circulate on the open market. Article 21. The damaged or soiled Renminbi shall be exchanged in accordance with the regulations of the PBC, and the PBC shall be responsible for collecting and destroying the aforesaid Renminbi. Article 22. The PBC shall establish a Renminbi issuing treasury, and its branches shall establish subsidiary issuing treasuries. The subsidiary issuing treasuries shall, in allocating Renminbi issuing funds, act on the order of allocation from their superior treasury. No entity or individual may use the issuing fund in violation of the relevant regulations. CHAPTER IV BUSINESS OPERATIONS Article 23. The PBC may use the following instruments to implement the monetary policies: (1) Demanding that the banking institutions deposit the reserve fund at a required ratio; (2) Fixing the base interest rates of the central bank; (3) Handling rediscounting for the banking institutions, which have opened accounts in the PBC; (4) Providing loans for commercial banks; (5) Dealing in treasury bonds, other government bonds, financial bonds and foreign exchange on the open market; and (6) Other monetary policy instruments determined by the State Council. The PBC may work out the specific conditions and procedures when applying the monetary policy instruments set forth in the preceding clauses to implement monetary policies. Article 24. The PBC shall manage the state treasury in accordance with laws and administrative regulations. Article 25. The PBC may issue and exchange treasury bonds and other government bonds to financial institutions on behalf of the financial departments of the State Council. Article 26. The PBC may open accounts for banking institutions as needed, but may not overdraw the accounts of the banking institutions. Article 27. The PBC shall organize or assist in organizing banking institutions in settling inter-institutional accounts, coordinate the activities and provide services thereof. The PBC shall set down specific procedures for such operation. The PBC shall formulate rules for settlement of payment together with the banking regulatory organs of the State Council. Article 28. The PBC may, for the implementation of monetary policies, determine the amounts, repayment schedules, rates of interest and modes of loans to commercial banks, but the time limit for such loans shall not exceed one year. Article 29. The people's bank is prohibited from overdrawing the financial budget of the government or from directly subscribing to or acting as sole sales agent for treasury bonds and other government bonds. Article 30. The PBC is prohibited from providing loans for the local governments or departments of governments at all levels, non-bank financial institutions and other entities or individuals, and may provide loans for non-bank financial institutions specially permitted by the State Council. The PBC shall not act as financial guarantor for any entity or individual. CHAPTER V SUPERVISION AND CONTROL OVER THE BANKING INDUSTRY Article 31. The PBC shall make supervision and inspection over the operation of financial market, and implement macro-control on financial market, so as to promote its harmonious development. Article 32. The PBC shall have the right to make inspection and supervision over the following acts of the financial institutions, other entities or individuals: (1) Acts of implementing the relevant provisions on the management of reserve against deposit; (2) Acts in relation to the special loans of the PBC; (3) Acts of implementing the provisions on Renminbi management; (4) Acts of implementing the relevant provisions on the management of the inter-bank borrowing or lending market and the inter-bank bonds markets; (5) Acts of implementing the relevant provisions on foreign exchange control; (6) Acts of implementing the relevant provisions on gold management; (7) Acts on behalf of the PBC of managing the state treasury; (8) Acts of implementing the relevant provisions on settlement management; and (9) Acts of implementing the relevant provisions on anti-money-laundering. The special loans mentioned in the preceding paragraph, refer to the loans used for special purpose, which are determined by the State Council and issued to financial institutions by the PBC. Article 33. The PBC may, for implementing the monetary policy and maintaining the stability of the finance, suggest that the banking regulatory organ of the State Council make inspection and supervision over banking institutions. And the banking regulatory organ of the State Council shall give a reply within 30 days upon receiving the suggestion. Article 34. Where a banking institution has difficulty in payment, which may give rise to financial risks, the PBC may, upon the approval of the State Council, have the right to make inspection and supervision over the banking institution to maintain financial stability. Article 35. The PBC may, for performing its functions, have the right to require the banking institutions to submit the necessary balance sheet, statements of profit and other finance and accounting reports and materials. The PBC shall, together with the banking regulatory organ of the State Council, and other financial supervision and administration organs of the State Council, establish the supervision and administration information sharing mechanism. Article 36. The PBC shall be responsible for compiling comprehensive statistics and accounting statements for the national banking system and publishing them in accordance with the relevant provisions of the state. Article 37. The PBC shall establish and perfect auditing and checking systems for and strengthen its control over the banking system. CHAPTER VI FINANCE AND ACCOUNTING Article 38. The PBC shall exercise independent control over its financial budget. The budget of the PBC shall be included in the central budget after it has been examined and verified by the financial departments of the State Council, and shall be supervised by the financial departments of the State Council for the purpose of implementing the budget. Article 39. The PBC shall turn in all of its net profit to the state treasury from its income of every fiscal year minus annual expenditures after withdrawing its general reserve funds at a proportion determined by the financial department of the State Council. Losses of the PBC shall be setoff by allocations of the central finance. Article 40. The PBC shall manage its revenues and expenditures and accounting affairs in accordance with laws, administrative regulations, and the uniform financial and accounting systems of the state, and shall be subject to the respective auditing and supervision of the audit organs and the financial departments of the State Council in accordance with the law. Article 41. The PBC shall, within 3 months after the end of each fiscal year, complete the compiling of balance sheets, statement of profit and loss and the relevant finance and accounting report forms, prepare its annual report and publish them in accordance with the relevant state regulations. The fiscal year of the PBC shall begin from January 1 to December 31 of the Gregorian calendar. CHAPTER VII LEGAL LIABILITIES Article 42. Anyone who illegally prints or mints Renminbi, sells counterfeit or illegally printed or minted Renminbi, or knowingly transports counterfeit money or illegally printed or minted money, which constitutes a crime, shall be prosecuted for criminal liabilities according to law. If the circumstances are not serious enough to constitute a crime, he shall be punished by the public security organs with a detention of no more than 15 days and a fine of no more than RMB 10,000 Yuan. Article 43. Anyone who buys counterfeit or altered Renminbi or knowingly holds or uses counterfeit or altered or illegally printed or minted Renminbi, which constitutes a crime, shall be prosecuted for criminal liabilities. If the circumstances are not serious enough to constitute a crime, he shall be punished by the public security organs with a detention of no more than 15 days and a fine of no more than RMB 10,000 Yuan. Article 44. In the case that anyone illegally uses the design of Renminbi in propaganda materials, publications or other commodities, the PBC shall order him to make corrections and destroy the illegally used design of Renminbi, confiscate any illegal gains and impose a fine of no more than RMB 50,000 Yuan. Article 45. If anyone prints or sells promissory notes as substitutes for Renminbi for circulation on the open market, the PBC shall order him to cease the illegal practice and impose on him a fine of no more than RMB 200,000 Yuan. Article 46. If any act listed in Article 32 of this Law is in violation of the relevant provisions, penalties shall be imposed according to the provisions on punishment in the relevant laws and administrative regulations if any. If there isn't any provision on punishment, the PBC shall, in accordance with the different circumstances, give warnings, confiscate illegal gains if any, and impose a fine of one time up to five times of the illegal gains in case the illegal gains are more than RMB 500,000 Yuan; and impose a fine of RMB 500,000 Yuan up to RMB 2 million Yuan if there are no illegal gains or the illegal gains are less than RMB 500,000 Yuan. The directors and senior management personnel directly responsible and other persons directly liable shall be given a warning, or imposed upon a fine of RMB 50,000 Yuan up to RMB 500,000 Yuan. In case a crime is constituted, the criminal liability shall be prosecuted for according to law. Article 47. In case a party refuses to accept the decisions on administrative penalties, he may institute an administrative action in accordance with the "Administrative Procedures Law of the People's Republic of China". Article 48. If the PBC commits any of the following acts, the person directly in charge and other persons directly liable shall be subject to administrative punishment. If a crime is constituted, he shall be prosecuted for criminal liabilities: (1) Providing loans in violation of the provisions of paragraph one of Article 30 of this Law; (2) Acting as a guarantor to entities or individuals; or (3) Using the currency issuing fund without authorization. In case of any one of the acts prescribed in the preceding clause, which causes losses, the person directly in charge and other persons directly liable shall bear part or all of the liabilities for compensation. Article 49. Where the local governments, the departments of the governments at all levels, public organizations or individuals coerce the PBC and its functionaries into providing loans or guarantee in violation of Article 30 of this Law, the person directly in charge and other persons directly liable shall be subject to administrative punishments in accordance with the law. If a crime is constituted, the criminal liabilities of the relevant persons shall be prosecuted for according to law, and they shall bear part or all of the liabilities for compensation for any losses. Article 50. If any functionary of PBC divulges any state or commercial secret he acquires, which is serious enough to constitute a crime, he shall be prosecuted for criminal liabilities according to law. If the circumstances are not serious enough to constitute a crime, he shall be subject to administrative punishments according to law. Article 51. If any functionary of the PBC commits embezzlement, bribery, malpractices for personal gains, abuse of powers, or neglect of duties, which constitutes a crime, he shall be prosecuted for criminal liabilities according to law. If the circumstances are not serious enough to constitute a crime, he shall be subject to administrative punishments according to law. CHAPTER VIII SUPPLEMENTARY PROVISIONS Article 52. The banking institutions mentioned in this Law, refer to the commercial banks, urban credit cooperatives, rural credit cooperatives, and other financial institutions and policy banks absorbing public deposits. The provisions of this Law on banking institutions shall be applicable to the financial capital management companies, trust and investment companies, finance companies, and financial leasing companies, which are established within the territory of China, and other financial institutions established upon the approval of the banking regulatory organ of the State Council. Article 53. The present Law shall be implemented as of its promulgation. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|