People s Bank of China, Commercial Bank Auxiliary Services Tentative Provisions

Promulgated: June 21 2001
Effective: as of date of promulgation
Interpreting authority: People's Bank of China
Applicability: For the purposes of these Provisions, “auxiliary services” means such businesses of a commercial bank that are not included in the assets and liabilities of the bank's balance sheet but that give rise to non-interest income of the bank (Article 3).

Main contents: Under the Provisions, auxiliary services of commercial banks are subject to either examination and approval or verification by the People's Bank of China, depending on whether they form contingent assets or liabilities of the banks and whether they are related to securities or insurance businesses (Article 6). The Provisions specify various types of auxiliary services that are subject to examination and approval and those that are subject to verification (Articles 7 and 8). Services such as provision of security and insurance brokerage are subject to approval; and services such as distribution of treasury bills and utility bill settlements are subject to verification. Any auxiliary services not specified in the Provisions shall be subject to approval (Article 11). The Provisions also set out the procedures of applying for approval and verification (Articles 13 to 17).
Related legislation: PRC, People's Bank of China Law, Mar 18 1995, CLP 1995 No.5 p23 and PRC, Commercial Banking Law, May 10 1995, CLP 1995 No.5 p32
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