General Office of the China Banking Regulatory Commission, General Office of the Ministry of Finance and General Office of the People's Bank of China, Circular on Matters Relevant to Strengthening the Administration of the Deposit Deviation Ratio of Commercial Banks

(3) attracting deposits through third party intermediaries;

(4) attracting deposits by delayed payment;

(5) attracting deposits by converting loan proceeds into deposits;

(6) attracting deposits by using loan proceeds to issue banker's acceptance bills;

(7) converting wealth management products into deposits; or

(8) converting interbank deposits into ordinary deposits (Article 2).

For a bank whose month-end deposit deviation ratio exceeds 3%, its access matters shall be suspended for at least three months in succession commencing from the following month. For a bank whose month-end deposit deviation ratio exceeds 3% more than twice during one year, its annual regulatory grade shall be lowered appropriately (Article 4).

Issued: September 11 2014

Main contents: Commercial banks may not use the following means to unlawfully attract or fraudulently increase deposits:

(1) attracting deposits with high interest;

(2) attracting deposits by illegally offering kickbacks;

(3) attracting deposits through third party intermediaries;

(4) attracting deposits by delayed payment;

(5) attracting deposits by converting loan proceeds into deposits;

(6) attracting deposits by using loan proceeds to issue banker's acceptance bills;

(7) converting wealth management products into deposits; or

(8) converting interbank deposits into ordinary deposits (Article 2).

For a bank whose month-end deposit deviation ratio exceeds 3%, its access matters shall be suspended for at least three months in succession commencing from the following month. For a bank whose month-end deposit deviation ratio exceeds 3% more than twice during one year, its annual regulatory grade shall be lowered appropriately (Article 4).