The Banking Supervision Law was promulgated in 2003, and amended in 2006 respectively. The latest revision entered into force on October 31, 2006.

There are 52 articles in total.

The key points are as follows:

1.The banking regulatory authority under the State Council shall be responsible for the regulation and supervision of the banking institutions in China and their business operations.

2.the term “banking institutions” means financial institutions established in China that take deposits from the general public, including, among others, commercial banks, urban credit cooperatives and rural credit cooperatives, and policy banks.

3.The provisions of this law pertaining to the regulation and supervision of banking institutions are applicable to the regulation and supervision of asset management companies, trust and investment companies, finance companies, financial leasing companies and other financial institutions established in China as authorized by the banking regulatory authority under the State Council.

4.The banking regulatory authority under the State Council shall, in accordance with the applicable provisions of this law, regulate and supervise the financial institutions that, subject to its approval, are established outside China, as well as the overseas business operations conducted by the financial institutions referred to in the preceding two paragraphs.

5.The banking regulatory authority under the State Council shall authorize the establishment, changes, termination and business scope of banking institutions.

6.The banking regulatory authority under the State Council shall review and assess the source of capital, financial strength, ability to replenish capital and integrity of the shareholders while reviewing the applications for the establishment of a banking institution or changes in the shareholders that hold a certain percentage or more of the total capital or total shares as stipulated in applicable laws and regulations.