People's Bank of China, Oversight of the Consolidation of Statements of Foreign Investment Banks Guiding Opinion

Issued: September 15 2000
Applicability: The Opinion applies to foreign investment banks that have two or more business branches (including subsidiary banks and joint venture banks controlled by foreign banks) in China (Item One of Section One).

Main contents: The Opinion provides that a foreign investment bank subject to consolidated statement oversight shall designate a principal reporting bank (Item Two of Section One). In the case of a wholly foreign-owned or joint venture bank, the principal reporting bank shall be the head office. In the case of branches of a foreign bank, the parent bank shall select one of the branches as the principal reporting bank within three months after such branches become subject to the regulations provided therein (Item Three of Section One). The Opinion further sets out the main duties of a principal reporting bank and its compliance officers (Sections Two and Three). Principal reporting banks shall submit their first consolidated financial statements in October 2000 and shall submit quarterly consolidated financial statements thereafter (Item Two of Section Four). A table of the adjusted items for consolidated financial statements is attached to the Opinion.
Related legislation: Regulation of the Overall Business Operation of Foreign Investment Banks in China by Statement Consolidation Circular, 1999