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	DECISION OF CHINA BANKING REGULATORY COMMISSION ON ADJUSTING THE METHODS AND PROCEDURES FOR THE MANAGEMENT OF MARKET ACCESS OF BANKS

	(Order of China Banking Regulatory Commission (No. 1 in 2003), May 29, 2003: The "Decision on Adjusting the Methods and Procedures for the Management of Market Access of Banks", which was adopted at the first chairman meeting of China Banking Regulatory Commission on May 26, 2003, is hereby promulgated, and shall come into force on July 1, 2003)


SUBJECT : BANKS; MARKET ACCESS
ISSUING DEPARTMENT : CHINA BANKING REGULATORY COMMISSION
ISSUE DATE : 05/29/2003
IMPLEMENT DATE : 07/01/2003
LENGTH : 715 words
TEXT :

In order to improve the efficiency of market accession and promote financial innovations, China Banking Regulatory Commission decides to adjust the methods and procedures for the management of market accession of banks as follows:

I. ADJUSTING THE SCOPE OF POWER TO APPROVE NEWLY ESTABLISHED BRANCH OFFICES

(1) All banking regulatory bureaus or all branch bureaus directly under China Banking Regulatory Commission (CBRC) shall accept and examine the applications by the branches of policy banks, solely state-owned commercial banks and joint-stock commercial banks for preparatory establishment within their respective jurisdictions, and submit the applications to CBRC for approval. The applications for opening business by the institutions whose preparatory establishment has been approved by CBRC shall be ratified by the banking regulatory bureaus or the branch bureaus directly under CBRC, and the business operation permits shall be issued, with copies being made to CBRC. The methods and procedures for approving newly established branches of foreign-funded banks remain unchanged.

(2) All banking regulatory bureaus or branch bureaus directly under CBRC shall accept and approve the applications by the banks and sub-branches in the respective jurisdictional cities for preparatory establishment and opening of business, and shall issue the business operation permits.

(3) All banking regulatory sub-bureaus shall accept and examine the applications by the sub-branches of banks within their respective jurisdictions for preparatory establishment, and submit the applications to their respective banking regulatory bureaus for approval; the applications for opening business by the institutions whose preparatory establishment has been approved by the banking regulatory bureaus shall be ratified by the respective banking regulatory sub-bureaus, and the business operation permits shall be issued, with copies being made to the respective banking regulatory bureaus.

II. ADJUSTING THE METHODS FOR APPROVING NEW BUSINESS

(1) The approval of the following business of Chinese-funded commercial banks shall be cancelled: domestic factoring, agency of liquidation of securities funds (through bank account transfer), agency of insurance, trusteeship of investments by authorized securities companies, trusteeship of trust assets, trusteeship of enterprise annuity. The record of the following business of Chinese-funded commercial banks shall be cancelled: buyer's or negotiated discounting of bills with interest, overdraft of legal person's account, agency of collection and payment of funds for trusted products.

(2) The record of the following business of foreign-funded banks shall be cancelled: domestic factoring, buyer's or negotiated discounting of bills with interest, overdraft of legal person's account.

(3) Each solely state-owned commercial bank or joint-stock commercial bank only needs to make a written report through its head office to CBRC within 10 working days after opening the above said business; each urban or rural commercial bank or foreign-funded bank only needs to make a written report to the banking regulatory bureau, the branch bureau directly under CBRC or the banking regulatory sub-bureau at its locality within 10 working days after opening the above said business.

(4) Each bank may authorize its qualified branch offices to open the newly approved business. A branch office of each bank may, upon the authorization of its superior bank, open the new business, and only needs to make a written report to the local banking regulatory bureau or branch bureau directly under CBRC or banking regulatory sub-bureau within 10 working days after opening the said business.

III. ADJUSTING THE METHODS OF RATIFYING THE QUALIFICATIONS FOR SENIOR MANAGERS TO HOLD THEIR POSTS

(1) For a senior manager in a Chinese-funded bank, solely foreign-owned bank or Chinese-foreign joint venture bank who is transferred within the bank on the same level, if his qualifications to hold the post have been examined, his original qualifications to hold the post shall still be valid, and need not be ratified for a second time.

(2) The auditing report at the departure of the above said senior manager from his post and the relevant materials on holding the post may be reported in writing to the local banking regulatory bureau, branch bureau directly under CBRC or banking regulatory sub-bureau within one month after his departure from his post.

(3) The record of qualifications for the vice president of a foreign-funded bank or sub-branch to hold his post shall be cancelled.

IV. THE EXISTING METHODS AND PROCEDURES

The existing methods and procedures for the management of market accession for urban and rural credit cooperatives, and postal savings institutions shall remain unchanged.