The Commercial Banking Law was promulgated in 1995 and amended in 2003 and 2015 respectively. The latest revision entered into force on October 1, 2015.

There are 95 articles in total.

The key points are as follows:

1.The commercial banks are those enterprise legal persons which are established to absorb public deposits, make loans, arrange settlement of accounts and engage in other businesses.

2.The establishment of a commercial bank shall be subject to the examination and approval of the banking regulatory organ of the State Council.

3.Commercial banks shall obtain the approval of the banking supervision and administration authority of the State Council for any of the following alteration matters:

(1) change of name;

(2) change of registered capital;

(3) change of address of the head office or branches;

(4) adjustment of the scope of business operations;

(5) change of shareholders who hold more than 5% of the total capital or the total shares;

(6) amendments to the articles of association; and

(7) other alteration matters stipulated by the banking supervision and administration authority of the State Council.

4.Commercial banks shall determine and publish their deposit interest rates in accordance with the upper and lower limits stipulated for deposit interest rates by the People’s Bank of China.

5.Commercial banks shall not engage in trust and investment business and securities operations or invest in immovable property other than for own use or invest in non-banking financial institutions and enterprises within the People’s Republic of China, unless otherwise provided by the State.

6.Where a commercial bank has experienced or is likely to experience a credit crisis which will have serious effects on the interests of depositors, the banking supervision and administration authority of the State Council may effect a take-over of the bank.