China Banking Regulatory Commission, Implementing Rules for the PRC Regulations for the Administration of Foreign-invested Banks

Promulgated: November 24 2006
Effective: December 11 2006

Main Contents: The Rules clarify the meaning of terms and phrases used in the PRC Regulations for the Administration of Foreign-invested Banks, such as "prudential conditions", "major shareholder", "feasibility study report" and "as at the end of the year prior to submission of the establishment application".

Procedures are also detailed for: (1) the establishment of a branch by a wholly foreign-owned bank or Sino-foreign equity joint venture bank; (2) the establishment of a foreign-invested banking institution of a business nature; (3) the conversion of a foreign bank's branch in China into a wholly foreign-owned bank in which its head office is the sole investor; and (4) engaging in renminbi business or expanding the scope of the customers to which it provides renminbi services by a foreign-invested banking institution of a business nature. The Rules also specify the qualification requirements of the directors, senior management personnel and chief representatives of foreign-invested banks as well as the procedures for terminating and liquidating the business of such banks.