(Adopted at the Third Session of the Eighth National People’s
Congress on March 18, 1995, promulgated by Order No. 46 of the
President of the People’s Republic of China on March 18, 1995, and
amended in accordance with the Decision on Amending the Law of the
People’s Republic of China on the People’s Bank of China adopted at
the 6th Meeting of the Standing Committee of the Tenth National
People’s Congress on December 27, 2003)
Contents
Chapter I General Provisions
Chapter II Organization Structure
Chapter III The Renminbi
Chapter IV Business Operations
Chapter V Financial Supervision and
Control
Chapter VI Financial Affairs and
Accounting
Chapter VII Legal Responsibility
Chapter VIII Supplement Provisions
Chapter I
General Provisions
Article 1 This Law is enacted in order to define the
status and make clear the functions and responsibilities of the
People’s Bank of China, ensure the correct formulation and
implementation of the monetary policies of the State, establish and
perfect a macro-control system through a central bank and maintain
financial stability.
Article 2 The People’s Bank of China is the central
bank of the People’s Republic of China.
The People’s Bank of China shall, under the leadership of the
State Council, formulate and implement monetary policies, guard
against and eliminate financial risks, and maintain financial
stability.
Article 3 The aim of monetary policies shall be to
maintain the stability of the value of the currency and thereby
promote economic growth.
Article 4 The People’s Bank of China shall perform the following
functions and responsibilities:
(1) to promulgate and carry out the orders and regulations
related to its functions and responsibilities;
(2) to formulate and implement monetary policies in accordance
with law;
(3) to issue Renminbi ( RMB ) and control its
circulation;
(4) to supervise and administer the inter-bank lending market
and the inter-bank bond market;
(5) to exercise control of foreign exchange and supervise
and administer the inter-bank foreign exchange market;
(6) to supervise and administer the gold market;
(7) to hold, administer and manage the State foreign exchange
reserve and gold reserve;
(8)to manage the State Treasury;
(9) to maintain the normal operation of the system for making
payments and settling accounts;
(10) to guide and make plans for the fight against money
laundering in the banking industry, and to be responsible for
monitoring the use of the funds earmarked for the fight against
money laundering;
(11) to be responsible for statistics, investigation, analysis
and forecasting concerning the banking industry;
(12) to engage in relevant international banking operations in
its capacity as the central bank of the State; and
(13) other functions and responsibilities prescribed by the
State Council.
To implement monetary policies, the People’s Bank of China may
carry out financial operations in accordance with the relevant
provisions of Chapter IV of this Law.
Article 5 The People’s Bank of China shall report its
decisions to the State Council for approval concerning the annual
money supply, interest rate, foreign exchange rates and other
important matters specified by the State Council before they are
implemented.
The People’s Bank of China shall immediately implement decisions
on monetary policies for matters other than those specified by the
State Council for the record.
Article 6 The People’s Bank of China shall submit to the
Standing Committee of the National People’s Congress work reports
concerning matters of monetary policies and the operations of the
banking industry.
Article 7 The People’s Bank of China shall, under the leadership
of the State Council, implement monetary policies, perform its
functions and carry out its business operations independently
according to law and be free from intervention by local
governments, government departments at various levels, public
organizations or individuals.
Article 8 All capital of the People’s Bank of China is invested
by the State and owned by the State.
Article 9 The State Council shall establish a coordinating
mechanism for financial supervision and administration. The
specific measures therefor shall be formulated by the State
Council.
ChapterII
Organizational Structure
Article 10 The People’s Bank of China shall have a Governor and
a certain number of Deputy Governors.
The candidate for the Governor of the People’s Bank of China
shall be nominated by the Premier of the State Council and decided
by the National People’s Congress; when the National People
Congress is not in session, the Governor shall be decided by the
Standing Committee of the National People’s Congress and appointed
or removed by the President of the People’s Republic of China. The
Deputy Governors of the People’s Bank of China shall be appointed
or removed by the Premier of the State Council.
Article11 The People’s Bank of China shall practice a system
wherein the Governor shall assume overall responsibility. The
Governor shall direct the work of the People’s Bank of China, the
Deputy Governors shall assist the Governor in his or her
work.
Article12 The People’s Bank of China 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 for the
record.
The monetary policy committee of the People’s Bank of China
shall play an important role in the State macro-control and the
formulation and adjustment of monetary policies.
Article13 The People’s Bank of China shall establish branches as
its representative organs in light of the need of performing its
functions and responsibilities and exercise unified leadership and
administration with respect to its branches.
The branches of the People’s Bank of China shall, as authorized
by the People’s Bank of China, maintain financial stability in
their respective districts and handle relevant business
operations.
Article 14 The Governor, Deputy Governors and other staff
members of the People’s Bank of China shall scrupulously abide by
their duties; they may not abuse their power or conduct malpractice
for private ends and they may not assume concurrent positions in
any other banking institutions, enterprises or
foundations.
Article 15 The Governor, Deputy Governors and other staff
members of the People’s Bank of China shall safeguard State Secrets
according to law and be obligated to safeguard the secrets of the
banking institutions and parties concerned with their
implementation of their functions and responsibilities.
Chapter III
The Renminbi
Article 16 The legal tender of the People’s Republic of China is
the Renminbi (RMB). When Renminbi is used to repay all public or
private debts within the territory of the People’s Republic of
China, no units or individuals may refuse to accept it.
Article 17The unit of the Renminbi is the yuan and the units of
the fractional currency of the Renminbi are the jiao and the
fen.
Article 18 The Renminbi shall be printed and issued solely ny
the People’s Bank of China.
When putting forth a new Renminbi issue, the People’s Bank of
China shall make known to the public the issuing date, face values,
designs, patterns and specifications.
Article 19 It is prohibited to counterfeit or alter Renminbi. It
is prohibited to sell or purchase counterfeit or altered Renminbi.
It is prohibited to transport, hold or use counterfeit or altered
Renminbi. It is prohibited to deliberately destroy or damage the
Renminbi. It is prohibited to illegally use the parttens of
Renminbi in propaganda materials, publications or other
commodities.
Article 20 No units or individuals may print or sell promissory
notes as substitutes for Renminbi to circulate on the
market.
Article 21The damaged or soiled Renminbi shall be exchanged in
accordance with the regulations of the People’s Bank of China,
which shall also be responsible to recall and destroy such
Renminbi.
Article 22 The People’s Bank of China shall establish a Renminbi
issue treasuries at its branches. The subsidiary issue treasuries
shall, in allocating Renminbi issue fund, act on the order of
allocation from their superior treasury. No units or individuals
may use the issue fund in violation of regulations.
Chapter IV
Business Operations
Article 23 To implement monetary policies, the People’s Bank of
China may apply the following monetary policy
instruments:
(1) to require a financial institution of the banking industry
to place a deposit reserve at a prescribed ratio;
(2) to fix the base interest rates for the central
bank;
(3) to handle rediscount for financial institutions of the
banking industry that have opened accounts in the People’s Bank of
China;
(4) to provide loans for commercial banks;
(5) to deal in State bonds, other government bonds, and
financial bonds and foreign exchange on the open market;
and
(6) other monetary policy instruments decided by the State
Council.
When applying the monetary policy instruments listed in the
preceding paragraph to implement monetary policies, the People’s
Bank of China may work out specific requirements and
procedures.
Article 24The People’s Bank of China shall manage he State
treasury in accordance with laws and administrative rules and
regulations.
Article 25 The People’s Bank of China may, on behalf of the
financial department under the State Council, issue to financial
institutions, and honour State bonds and other government
bonds.
Article 26 The People’s Bank of China may open accounts for
financial institutions of the banking industry as needed, but may
not allow them to overdraw.
Article 27 The People’s Bank of China shall organize or assist
in organizing a clearing system among financial institutions of the
banking industry, coordinate the efforts of such institutions in
matters of clearing and provide services in this regard. The
specific measures therefor shall be formulated by the People’s Bank
of China.
The People’s Bank of China shall, in conjunction with the
banking regulatory authority under the State Council, formulate
regulations on payment and clearing.
Article 28 The People’s Bank of China may, as required by
the implementation of monetary policies, determine the amounts,
term, interest rates and forms of loans extended to commercial
banks, however, the maximum term of loans shall not exceed one
year.
Article 29 The People’s Bank of China may not make an overdraft
for the government, and may not directly subscribe or underwrite
State bonds or other government bonds.
Article 30 The People’s Bank of China may not provide loans to
the local governments or government departments at various levels,
to non-banking institutions, other units or individuals, with the
exception of the specific non-banking institutions as decided by
the State Council.
The People’s Bank of China may not provide guaranty for any unit
or individual.
Chapter V
Financial Supervision and Control
Article 31 The People’s Bank of China shall, in accordance with
law, monitor the operation of the financial markets, conduct
macro-control of such markets and promote their coordinated
development.
Article 32 The People’s Bank of China shall have the power to
inspect and supervise the following activities of the financial
institutions and other units and individuals:
(1) implementation of the regulations for control of deposit
reserve;
(2)activities related to the special loans of the People’s Bank
of China;
(3)implementation of the regulations for control of
Renminbi;
(4)implementation of the regulations for control of the
inter-bank lending market and the inter-bank bond
market;
(5)implementation of the regulations for control of foreign
exchange;
(6)implementation of the regulations for control of
gold;
(7)management of the State Treasury on behalf of the People’s
Bank of China;
(8)implementation of the regulations for control of clearing;
and
(9)implementation of the regulations against money
laundering.
The special loan mentioned in the preceding paragraph are
loans granted, upon decision by the State Council, by the
People’s Bank of China for special purposes.
Article 33 The People’s Bank of China may, according to the need
to implement monetary policies and maintain financial stability,
propose that the banking regulatory authority under the State
Council inspect and supervise the financial institutions of the
banking industry. The said authority shall, within thirty days from
the date it receives the proposal, make a reply.
Article 34 When financial institutions of the banking industry
have difficulties in making payment that may trigger off financial
risks, the People’s Bank of China shall, with a view to maintaining
financial stability, have the power to inspect and supervise the
financial institutions of the banking industry with the approval of
the State Council.
Article 35 The People’s Bank of China shall, according to the
need to fulfill its functions and responsibilities, have the power
to demand the financial institutions of the banking industry to
submit the necessary balance sheets, statements of profit and other
financial and accounting reports, statistical reports and
information.
The People’s Bank of China, the banking regulatory authority
under the State Council and the other financial regulatory
institutions under the State Council shall establish a mechanism to
share supervisory information.
Article 36 The People’s Bank of China shall be responsible for
compiling unified statistics and accounting statements from the
national banking system and shall publish them in accordance with
relevant regulations of the State.
Article 37 The People’s Bank of China shall establish and
perfect system for its own examination and inspection and
strengthen its own supervision and administration.
Chapter VI
Financial Affairs and Accounting
Article 38 The People’s Bank of China shall exercise independent
control over its financial budget.
The budget of the People’s Bank of China shall be incorporated
in the central budget after it has been examined and verified by
the financial department under the State Council and the
implementation thereof shall be subject to supervision of the
financial department under the State Council.
Article 39 The People’s Bank of China shall, after withdrawing
funds for its general reserve at a proportion determined by the
financial department under the State Council, turn over to the
State treasury the entire net profit remaining from its income in
an accounting year minus its expenditures in the same
period.
Losses sustained by the People’s Bank of China shall be made up
by appropriations from the State treasury.
Article 40 The financial receipts and payments and accounting
affairs of the People’s Bank of China shall be governed by laws,
administrative regulations and unified State financial and
accounting systems and be subject to the auditing and supervision
conducted, in accordance with law, separately by the audit
institution and the financial department under the State
Council.
Article 41The People’s Bank of China shall, within three months
after the end of every accounting year, compile balance sheets of
its assets, statements of profit and loss and relevant financial
and accounting reports, prepare its annual report and publish them
in accordance with relevant regulations of the State.
The fiscal year of the People’s Bank of China begins on the
first day of January and ends on the thirty-first day of December
of the Gregorian calendar.
Chapter VII
Legal Responsibility
Article 42 Anyone who counterfeits or alters Renminbi, sells
counterfeit or altered Renminbi or knowingly transports counterfeit
or altered Renminbi, which is serious enough to constitute a crime,
shall be investigated for criminal responsibility in accordance
with law; if the case is not serious enough to constitute a crime,
he shall be put in detention for not more than 15 days and fined
not more than 10,000 yuan by a public security organ.
Article 43 Anyone who buys counterfeit or altered Renminbi or
knowingly holds or uses counterfeit or altered Renminbi, which is
serious enough to constitute a crime, shall be investigated for
criminal responsibility in accordance with law; if the case is not
serious enough to constitute a crime, he shall be put in detention
for not more than 15 days and fined not more than 10,000 yuan by a
public security organ.
Article 44 If anyone illegally uses the patterns of Renminbi in
propaganda materials, publications or other commodities, the
People’s Bank of China shall order him to set it right and shall
destroy the illegally used patterns of Renminbi, confiscate the
illegal gains and impose a fine of not more than 50,000
yuan.
Article 45 If anyone prints or sells promissory notes as
substitutes for Renminbi to circulate on the market, the People’s
Bank of China shall order him to cease his illegal act and impose a
fine of not more than 200,000 yuan.
Article 46 Where in relevant laws and administrative regulations
there are provisions governing punishment for violations in respect
of the activities as are listed in Article 32 of this Law,
punishment shall be meted out in accordance with those provisions;
where in such laws and administrative regulations there are no
provisions governing such punishment, the People’s Bank of China
shall, on the merits of each case, give a disciplinary warning,
confiscate the unlawful gains, or if the unlawful gains exceed
500,000 yuan, shall, in addition, impose a fine of not less than
the amount of such gains but not more than five times that amount;
if there are no unlawful gains or if such gains are less than
500,000 yuan, it shall impose a fine of not less than 500,000 yuan
but not more than 2,000, 000 yuan. The director or senior manager
who is directly in charge or any other person who is directly
responsible shall be given a disciplinary warning and be fined not
less than 50,000 yuan but not more than 500,000 yuan. If a crime is
constituted, criminal responsibility shall be investigated in
accordance with law.
Article 47 If any party refuses to accept the administrative
punishment, he may institute an administrative lawsuit in
accordance with the Administrative Procedure Law of the People’s
Republic of China.
Article 48 If the People’s Bank of China commits any of the
following acts, the persons directly in charge and other persons
directly responsible for the offense shall be subject to
administrative sanctions according to law; if the case constitutes
a crime, the offenders shall be investigated for criminal
responsibility according to law:
(1) to provide a loan in violation of the provisions in the
first paragraph of Article 30;
(2) to provide guaranty for a unit or individual; or
(3) to use the issue fund without authorization.
If any of the acts specified in the preceding paragraph results
in losses, the persons directly in charge and other persons
directly responsible for the offense shall be partially or wholly
liable for the losses.
Article 49 If a local government or a government department at
any level, a public organization or an individual forcibly demands
the People’s Bank of China or its staff member to provide a loan or
a guaranty in violation of the provisions in Article 30, the
persons directly in charge and other persons who are directly
responsible for the offense shall be subject to administrative
sanctions in accordance with the law; if the case constitutes a
crime, the offenders shall be investigated for criminal
responsibility according to law; if losses are caused, the
offenders shall be partially or wholly liable for the
losses.
Article 50 If any staff member of the People’s Bank of China
divulges State secrets or the business secrets he knows, which is
serious enough to constitute a crime, he shall be investigated for
criminal responsibility according to law; if the case is not
serious enough to constitute a crime, he shall be subject to
administrative sanction according to law.
Article 51 If any staff member of the People’s Bank of
China commits embezzlement, accepts bribes, conducts malpractices
for personal ends, abuses his power or neglects his duty, which is
serious enough to constitute a crime, he shall be investigated for
criminal responsibility according to law; if the case is not
serious enough to constitute a crime, he shall be subject to
administrative sanction according to law.
Chapter VIII
Supplementary Provisions
Article 52 For purposes of this law, the financial
institutions of the banking industry are financial institutions
established within the territory of the People’s Republic of China
that take in deposits from the general public, including, among
others, commercial banks, urban credit cooperatives and rural
credit cooperatives, and policy banks.
The provisions of this Law pertaining to financial institutions
of the banking industry are applicable to the assets management
companies, trust and investment companies, financial companies and
financial leasing companies established within the territory of the
People’s Republic of China and other financial institutions
established with the approval of the banking regulatory authority
under the State Council.
Article 53 This Law shall be effective on the date of
promulgation.
(Legislative Affairs Commission of the Standing Committee of the
National People’s Congress)
