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	CIRCULAR OF THE PEOPLE'S BANK OF CHINA ON FURTHER STRENGTHENING THE ADMINISTRATION OF FOREIGN EXCHANGE BUSINESS LICENSING FOR WHOLLY-STATE-OWNED COMMERCIAL BANKS

	(February 15, 2001)


SUBJECT : COMMERCIAL BANKS; WHOLLY-STATE-OWNED; FOREIGN EXCHANGE BUSINESS
ISSUING DEPARTMENT : PEOPLE'S BANK OF CHINA
ISSUE DATE : 02/15/2001
IMPLEMENT DATE : 02/15/2001
LENGTH : 435 words
TEXT :

Recently, we have found that some wholly state-funded commercial banks and the branches thereof which, failing to obtain the approval documents for foreign exchange business, authorize on their own accord their branches to add the foreign exchange business. In order to further standardize the administration of the foreign exchange business of the wholly state-funded commercial banks, and to perfect the examination and approval procedures for foreign exchange business, the relevant matters are hereby notified as follows:

I. To open or add the foreign exchange business, the wholly state-funded commercial banks and the branches thereof must file an application to the People's Bank of China in advance, and only after being approved may they open or add the business.

II. The head offices of the wholly state-funded commercial banks shall refer to the scope of foreign exchange business of commercial banks stipulated in the Provisions on the Administration of Foreign Exchange Business of Banks, and the Provisions on the Scope of the Foreign Exchange Business of the Banks at Various Levels, and shall, prior to March 31, 2001, apply to the head office of the People's Bank of China for making up the examination and approval formalities with respect to the foreign exchange business that they have opened without going through the examination and approval formalities due to historical reasons of the banks, and the wholly state-funded commercial banks that fail to apply for making up the examination and approval formalities within the prescribed time limit shall be regarded as expanding the foreign exchange business without authorization.

III. Where the branches at various levels of wholly state-funded commercial banks apply for opening or adding the foreign exchange business, they shall, according to the authority of examination and approval within their respective bank systems, first obtain valid approval documents from their respective trade.

IV. The wholly state-funded commercial banks and the branches thereof which, failing to obtain the approval of the People's Bank of China to open the foreign exchange business, may not, without authorization, authorize their respective branches to open the business.

V. The People's Bank of China shall make examination and approval of the applications for foreign exchange business filed by the wholly state-funded commercial banks according to the business operations, internal control rules, internal management and other concrete situations of those banks. The wholly state-funded commercial banks and the branches thereof that open or add the foreign exchange business without authorization shall be severely dealt with in accordance with the Measures for Punishment of the Illegal Financial Acts and other relevant laws and regulations, and the relevant liable personnel shall be investigated for liabilities.