Decree of the State Council of the People's Republic of China
No. 478

"Regulations of the People's Republic of China on the Administration of Foreign-funded Banks" has been approved on the 155th standing meeting of the State Council on November 8, 2006. It is now promulgated and shall enter into effect as of December 11, 2006.

Wen Jiabao, Prime Minister
November 11, 2006

Regulation of the People's Republic of China on the Administration of Foreign-funded Banks

Article 1 These Regulations are formulated for the purposes of meeting the needs of opening up to the outside world and economic development, strengthening and improving the supervision of foreign-funded banks, and promoting the safe and sound operation of the banking industry.

Article 2 The term "foreign-funded bank" as mentioned in these regulations refers to any of the following institutions approved to be established within the territory of the People's Republic of China in accordance with relevant laws and regulations of the People's Republic of China:

(1) a wholly foreign-funded bank funded by a foreign bank on its own or jointly with any other foreign financial institution;
(2) a Chinese-foreign joint venture bank jointly funded by a foreign financial institution with a Chinese company or enterprise;
(3) a branch of a foreign bank
(4) a representative office of a foreign bank.

The institutions listed in subparagraphs (1) to (3) of the preceding paragraph are hereinafter referred to collectively as operational foreign-funded banks.