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(Adopted
at the Third Session of the Standing Committee of the Eighth National
People's Congress and promulgated by Decree No.46 of President of
the People's Republic of China on March 18,1995)
Chapter
I General Provisions
Article
1 This law is formulated for the purpose of establishing the status
and functions of People's Bank of China (PBC), ensuring the correct
formulation and implementation of the State monetary policies, instituting
and perfecting a macro-control system through the central bank and
strengthening supervision and administration over the banking industry.
Article
2 PBC is the central bank of the People's Republic of China.
As
the central bank, PBC shall formulate and implement monetary policies
and exercise supervision and control over the banking industry in
the country under the leadership of the State Council.
Article
3 The aim of monetary policies is to maintain the stability of the
value of the currency and thereby promote economic growth.
Article
4 PBC shall perform the following functions:
(1)
Formulate and implement monetary policies in accordance with the
law;
(2)
Issue Renminbi (RMB) and control its circulation;
(3)
Examine, approve, supervise and administer banking institutions
in accordance with regulations;
(4)
Supervise and control the financial market in accordance with regulations;
(5)
Promulgate ordinances and rules concerning financial administration
and business;
(6)
Hold, administer and manage the State foreign exchange reserve and
gold reserve;
(7)
Manage the State treasury;
(8)
Maintain the normal operation of the systems for making payments
and settling accounts;
(9)
Be responsible for statistics, investigation, analysis and forecasting
for the banking industry;
(10)
Engage in relevant international banking operations in its capacity
as the central bank of the State; and
(11)
Other functions assigned to it by the State Council.
In
order to implement monetary policies, PBC may carry out financial
operations in accordance with the relevant provisions of Chapter
IV of this law.
Article
5 PBC shall report its decisions concerning the annual supply of
banknotes, interest rates, foreign exchange rates, and other major
issues specified by the State Council to the State Council for approval
before implementation.
PBC
shall immediately carry out decisions on matters concerning monetary
policies, but not specified in the preceding paragraph, and report
them to the State Council for the record.
Article
6 PBC shall submit to the Standing Committee of the National People's
Congress an annual report on monetary policies and the supervision
and administration of the financial affairs.
Article
7 PBC shall, under the leadership of the State Council, independently
implement monetary policies, perform its functions and carry out
its operations according to law free from any intervention by local
governments or government departments at all levels, public organizations
or individuals.
Article
8 All capital of the PBC is allocated by the State and owned by
the State.
Chapter
II Organization
Article
9 PBC shall have a governor and a certain number of deputy governors.
The
governor of PBC shall be nominated by the Premier of the State Council,
and affirmed by the National People's Congress for the post but
whereas the National People's Congress is not in session, affirmed
by the Standing Committee of the National People's Congress and
appointed or removed by the president of the People's Republic of
China for the post. The deputy governors of the PBC shall be appointed
or removed by the Premier of the State Council.
Article
10 PBC shall institute a system in which the governor assumes the
full responsibility. The governor shall direct the work of PBC and
the deputy governors shall assist the governor in his/her work.
Article
11 PBC shall establish a monetary policy committee whose functions,
composition and working procedures shall be prescribed by the State
Council and reported to the Standing Committee of the National People's
Congress of the record.
Article
12 PBC shall, for performing its functions, establish branches as
its representative organs and exercise centralized and unified leadership
and control over those branches.
The
branches of the PBC, after being authorized by the Bank, shall be
responsible for the supervision and control of the banking operation
and for handling relevant business operations in the areas under
their respective jurisdiction.
Article
13 The governor, deputy governors and other staff of PBC shall be
diligent in carrying out their functions, refrain from abuse of
power, malpractices for gaining private interests, or holding posts
concurrently in any other banking institution, enterprise or foundation.
Article
14 The governor, deputy governors and other staff of PBC shall keep
State secrets according to law and be obligated to keep secrets
of the banking institutions and the clients under their supervision
and control.
Chapter
III Renminbi
Article
15 The legal tender of the PBC is Renminbi (RMB). Renminbi shall
be used for repaying all public or private debts according to its
face value within the territory of the People's Republic of China
and not be whatsoever rejected by any organization or individual.
Article
16 The basic unit of Renminbi is the Yuan and the units of fractional
currency of Remminbi are the jiao and the fen.
Article
17 Renminbi shall be printed, minted and issued solely by PBC.
PBC
shall make public announcement of the issuing date, face values,
designs, patterns and specifications of a new Renminbi issue.
Article
18 Any counterfeiting, altering or illegal printing or minting of
Renminbi is prohibited. Selling or buying counterfeit or altered
Renminbi is prohibited. Transportation, possession or use of counterfeit,
altered or illegally printed or minted Renminbi is prohibited. Deliberate
damaging of Renminbi is prohibited. Illegal use of the image of
Renminbi in propaganda materials, publications or other commodities
is prohibited.
Article
19 No organization or individual may print or issue promissory notes
as substitutes for Renminbi to circulate on the open market.
Article
20 The damaged or soiled Renminbi shall be exchanged in accordance
with the regulations of PBC and PBC shall be responsible for collecting
and destroying the aforesaid Renminbi.
Article
21 PBC shall establish a Renminbi issue treasury and its branches
shall establish subsidiary issue treasuries. The subsidiary issue
treasuries shall, in allocating Renminbi issue funds, act on the
order of allocation from their superior treasury. No organization
or individual may use the issue fund in violation of the relevant
regulations.
Chapter
IV Business Operations
Article
22 PBC may use the following instruments to implement the monetary
policies:
(1)
reserve fund at a required ratio deposited in PBC by banking institutions
under demand;
(2)
base interest rates fixed by the central bank;
(3)
rediscount for banking institutions which have opened accounts in
PBC;
(4)
provision of loans for commercial banks;
(5)
deals in State bonds and other government bonds and foreign exchange
on the open market; and
(6)
other monetary policy instruments defined by the State Council.
PBC
may work out the specific conditions and procedures when applying
the monetary policy instruments set forth in the preceding clauses
to implement monetary policies.
Article
23 PBC shall manage the State treasury in accordance with the laws
and administrative rules and regulations.
Article
24 PBC may issue government bonds to banking institutions and organize
to exchange government bonds on behalf of the financial department
of the State Council.
Article
25 PBC may open accounts for banking institutions as needed, but
may not overdraw the accounts of the banking institutions.
Article
26 PBC shall organize or assist in organizing banking institutions
in settling inter-institutional accounts, coordinating such activities
and providing such services. PBC shall work at specific procedures
for such operation.
Article
27 PBC may, for the implementation of monetary policies, determine
the amounts, repayment schedules, rates of interest and forms of
loans to commercial banks, but the time limit for such loans shall
not exceed one year.
Article
28 PBC must not give any overdrawal in exceeding financial budget
of the government or directly subscribe to or act as sole sales
agent for State bonds and other government bonds.
Article
29 PBC must not provide loans to the local governments, governmental
departments of various levels, non-bank financial institutions and
other organizations or individuals except to non-bank financial
instituations specially permitted by the State Council.
PBC
must not act as financial guarantor for any organization or individual.
Chapter
V Supervision and Control over the Banking Industry
Article
30 PBC shall, in accordance with the law, exercise supervision and
control over banking institutions and their business operations
to maintain the legitimate, stable and sound operation of the banking
industry.
Article
31 PBC shall, in accordance with relevant regulations, examine and
approve the establishment, change, termination and scope of business
of a banking institution.
Article
32 PBC shall have the power to audit, check and supervise at any
time the deposits, loans, account settling, bad debts and other
business affairs of banking institutions.
PBC
shall have the power to check and supervise the raising or lowering
of interest rates on deposits or loans by banking institutions in
violation of regulations.
Article
33 PBC shall have the power to demand banking institutions to submit
balance sheets of their assets, statements of profit and loss and
other financial and accounting reports and materials in pursuance
of regulations.
Article
34 PBC shall be responsible for compiling comprehensive statistics
and accounting statements for the national banking system and for
publishing them in accordance with relevant State provisions.
Article
35 PBC shall guide and supervise the business operations of the
State banks responsible for implementing State policies.
Article
36 PBC shall establish and perfect auditing and checking system
for and strengthen its control over the banking system.
Chapter
VI Finance and Accounting
Article
37 PBC shall exercise independent control over its financial budget.
The budget of PBC shall be incorporated in the central budget after
it has been examined and verified by the financial department of
the State Council.
Article
38 PBC shall turn over to the State treasury the entire net profit
from its every accounting fiscal yearly income minus annual expenditures
after withdrawing funds for its general reserve at a proportion
determined by the financial department of the State Council.
Losses
sustained by PBC shall be offset by State allocations.
Article
39 PBC shall abide by the laws, administrative rules and regulations
and the unified State accounting system in managing its revenue
and expenditures and in accounting and be subject to the respective
auditing and supervision of the audit institution and the financial
department of the State Council in pursuance of the law.
Article
40 PBC shall, within three months after the end of every fiscal
year, complete balance sheets of its assets, statement of profit
and loss and relevant accounting reports, prepare its annual report
and publish them in accordance with relevant regulations of the
State.
The
fiscal year of the PBC begins on the first of January and ends on
the thirty-first of December of the Gregorian calendar.
Chapter
VII Legal Liabilities
Article
41 Anyone who illegally prints or mints Renminbi, sells counterfeit
Renminbi, or knowingly transports counterfeit money or illegally
printed or minted money shall be investigated for criminal responsibilities
in accordance with the law.
Anyone
who alters Renminbi or sells altered Renminbi or knowingly transports
altered Renminbi shall, if the case constitutes a crime, be investigated
for criminal responsibilities and shall, if the circumstances are
not serious enough, be punished by the public security organ with
a detention of no more than 15 days and a fine of no more than RMB
5,000 Yuan.
Article
42 Anyone who buys counterfeit or altered Renminbi or knowingly
holds or uses counterfeit or altered or illegally printed or minted
Renminbi shall, if the case constitutes a crime, be investigated
for criminal responsibilities and shall, if the circumstances are
not serious enough, be punished by the public security organ with
a detention of no more than 15 days and a fine of no more than RMB
5,000 Yuan.
Article
43 In the event that anyone illegally uses the image of Renminbi
in propaganda materials, publications or other commodities, PBC
shall order to make corrections and destroy the illegally used image
of Reminbi, confiscate any income illegally obtained and impose
a fine of no more than RMB 50,000 Yuan.
Article
44 In the event that anyone prints or sells promissory notes as
substitutes for Renminbi for circulation on the open market, PBC
shall order to cease the illegal practice and impose a fine of no
more than RMB 200,000 Yuan.
Article
45 In the event that anyone violates the laws or administrative
rules or regulations regarding administration of banking, PBC shall
order to cease the illegal practice and give administrative sanctions
in accordance with the law; if the case constitutes a crime, criminal
responsibilities shall be affixed.
Article
46 Upon refusal to administrative punishments, administrative procedures
shall be taken in accordance with the "Administrative Procedure
Law of the People's Republic of China".
Article
47 Whereas PBC commits any of the following acts, the person directly
in charge and other persons held directly responsible shall be subject
to administrative punishments; if the case constitutes a crime,
criminal responsibilities shall be affixed in accordance with the
law:
(1)
Provide loan in violation of the stipulations in clause 1 of Article
29;
(2)
Provide financial guarantee for a unit or an individual; or
(3)
Use the currency to issue fund without authorization.
Whereas
the aforesaid acts result in losses, the person directly in charge
and other persons held directly responsible shall bear part of or
all the liabilities for compensation.
Article
48 Whereas a local government or any other administrative organ,
public organization or individual forces PBC and its functionaries
into providing loans or guarantee in violation of Article 29 of
this law, the person directly in charge and other persons held directly
responsible shall be subject to administrative punishments in accordance
with the law; if the case constitutes a crime, they shall be investigated
for criminal responsibilities according to law and shall bear part
of or all the liabilities for compensation for any resultant losses.
Article
49 Any functionary of PBC who divulges any State secret shall, if
the case constitutes a crime, be investigated for criminal responsibilities
according to law; if the circumstances are not serious enough, he/she
shall be subject to administrative punishments according to law.
Article
50 Any functionary of the PBC who commits embezzlement, bribery,
malpractices for personal gain, abuse of powers, or neglect of duties
shall, if the case constitutes a crime, be investigated for criminal
responsibilities according to law; if the circumstances are not
serious enough, be subject to administrative punishments according
to law.
Chapter
VIII Supplementary Provisions
Article
51 This Law shall go into effect as of the date of its promulgation.
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