Law of the People's Bank of China

Adopted at the Third Session of the Eighth National People's Congress on March 1995, 3

Chapter I General Provisions

Article 1 This Law is formulated for the purpose of establishing the status and responsibilities of People's Bank of China, ensuring the correct formulation and implementation of the State's monetary policy, establishing and improving the macro-control system of the Central Bank, and strengthening the supervision and management of the financial industry.

Article 2 People's Bank of China is the central bank of the People's Republic of China.

Under the leadership of the State Council, People's Bank of China formulates and implements monetary policy and supervises and administers the financial industry.

Article 3 The objective of monetary policy is to maintain the stability of the value of the currency and thereby promote economic growth.

Article 4: People's Bank of China perform the following duties:

(1) formulating and implementing monetary policy in accordance with law;

(2) issuing renminbi and managing the circulation of renminbi;

(3) Approving, supervising and managing financial institutions in accordance with provisions;

(4) supervising and managing the financial market in accordance with provisions;

(5) issuing orders and rules related to financial supervision and management;

(6) holding, managing and operating the state's foreign exchange reserves and gold reserves;

(7) Manager of the treasury;

(8) Maintaining the normal operation of payment and clearing systems;

(9) Responsible for statistics, investigation, analysis and forecasting of the financial industry;

(10) Engaging in relevant international financial activities as the central bank of the country;

(11) Other duties prescribed by the State Council.

People's Bank of China may engage in financial business activities in accordance with the relevant provisions of Chapter IV of this Law for the purpose of implementing monetary policy.

Article 5 Decisions made by People's Bank of China on the annual money supply, interest rates, exchange rates and other important matters prescribed by the State Council shall be implemented after approval by the State Council.

After People's Bank of China makes a decision on other matters related to monetary policy other than those provided for in the preceding paragraph, it shall be implemented and reported to the State Council for the record.

Article 6 People's Bank of China shall submit to the Standing Committee of the National People's Congress a work report on the situation of monetary policy and financial supervision and management.

Article 7 Under the leadership of the State Council, People's Bank of China independently carry out monetary policy, perform their duties and conduct business in accordance with law, and shall not be interfered with by local governments, government departments at all levels, social organizations or individuals.

Article 8 All capital of the People's Bank of China shall be funded by the State and shall belong to the State.

Chapter II: Organizational Structure

Article 9 People's Bank of China shall have one president and several vice presidents.

The selection of the People's Bank of China Governor shall be decided by the National People's Congress upon nomination by the Premier of the State Council; When the National People's Congress is not in session, the Standing Committee of the National People's Congress shall decide to appoint and remove the President of the People's Republic of China. People's Bank of China Vice President shall be appointed and dismissed by the Premier of the State Council.

Article 10 The People's Bank of China implements the president responsibility system. The President leads the work of the People's Bank of China, and the Vice President assists the President.

Article 11 A monetary policy committee People's Bank of China established. The duties, composition and working procedures of the Monetary Policy Committee shall be formulated by the State Council and reported to the Standing Committee of the National People's Congress for the record.

Article 12: People's Bank of China establish branch offices as needed to perform their duties as dispatching bodies for People's Bank of China. People's Bank of China exercise centralized and unified leadership and management over branch offices.

The branches of the People's Bank of China are responsible for the financial supervision and administration of their respective jurisdictions and undertake relevant business in accordance with the authorization of the People's Bank of China.

Article 13 The president, vice president and other staff members of the People's Bank of China shall scrupulously perform their duties, shall not abuse their powers, engage in malpractice for personal gain, and shall not work part-time in any financial institution, enterprise or foundation.

Article 14: The presidents, vice presidents, and other staff of People's Bank of China shall keep state secrets in accordance with law, and have the responsibility to keep secrets for the financial institutions and relevant parties they supervise and manage.

Chapter III: People's Currency

Article 15 The legal tender of the People's Republic of China is the renminbi. The payment in renminbi of all public and private debts within the territory of the People's Republic of China shall not be refused by any unit or individual.

Article 16 The unit of renminbi is yuan, and the unit of renminbi auxiliary currency is angular and centen.

Article 17 The renminbi shall be uniformly printed and distributed by People's Bank of China.

People's Bank of China issuing a new version of the renminbi, the issuance time, denomination, pattern, style and specifications shall be announced.

Article 18 Forgery or alteration of renminbi is prohibited. It is forbidden to sell or buy counterfeit or altered renminbi.

It is forbidden to transport, possess or use counterfeit or altered renminbi. Intentional destruction of RMB is prohibited. It is forbidden to illegally use RMB graphics on publicity materials, publications or other goods.

Article 19 No unit or individual may print or sell token coupons to replace the renminbi in circulation in the market.

Article 20 Broken or defaced renminbi shall be exchanged in accordance with the provisions of the People's Bank of China, and the People's Bank of China shall be responsible for recovering and destroying them.

Article 21 People's Bank of China establish a renminbi issuance bank and set up a branch bank in its branches.

The transfer of RMB issuance funds by branch treasuries shall be handled in accordance with the transfer order of the higher-level treasury. No unit or individual may use the issuance fund in violation of regulations.

Chapter IV Business

Article 22 People's Bank of China may use the following monetary policy tools for the purpose of implementing monetary policy:

(1) requiring financial institutions to deposit deposit reserves in accordance with prescribed proportions;

(b) determining the benchmark interest rate of the Central Bank;

(3) Handling rediscounting for financial institutions that open accounts in People's Bank of China;

(4) providing loans to commercial banks;

(5) buying and selling treasury bonds and other government bonds and foreign exchange on the open market;

(6) Other monetary policy tools determined by the State Council.

People's Bank of China for the purpose of implementing monetary policy, specific conditions and procedures may be prescribed when using the monetary policy tools listed in the preceding paragraph.

Article 23 People's Bank of China manage the treasury in accordance with the provisions of laws and administrative regulations.

Article 24 People's Bank of China may, on behalf of the financial department under the State Council, organize the issuance and redemption of treasury bonds and other government bonds to financial institutions.

Article 25: People's Bank of China may open accounts for financial institutions as needed, but must not overdraft the accounts of financial institutions.

Article 26: People's Bank of China shall organize or assist in organizing the liquidation system between financial institutions, coordinate the liquidation matters between financial institutions, and provide liquidation services. The specific measures shall be prescribed by the People's Bank of China.

Article 27 People's Bank of China may, according to the needs of implementing monetary policy, decide on the amount, term, interest rate and method of lending to commercial banks, but the term of the loan shall not exceed one year.

Article 28 People's Bank of China shall not overdraft government finances, and shall not directly subscribe for or underwrite treasury bonds or other government bonds.

Article 29 People's Bank of China shall not provide loans to local governments or government departments at all levels, and shall not provide loans to non-bank financial institutions or other units or individuals, except where the State Council decides that loans may be provided to specific non-bank financial institutions People's Bank of China.

People's Bank of China shall not provide guarantees to any unit or individual.

Chapter V: Financial Supervision and Administration

Article 30: People's Bank of China supervise and administer financial institutions and their operations in accordance with law, and maintain the lawful and steady operation of the financial industry.

Article 31: People's Bank of China to review and approve the establishment, modification, and termination of financial institutions and their business scope in accordance with provisions.

Article 32 People's Bank of China have the right to audit, inspect and supervise the deposits, loans, settlements, bad debts and other conditions of financial institutions at any time.

People's Bank of China has the right to inspect and supervise financial institutions' behavior of raising or lowering deposit interest rates or loan interest rates in violation of regulations.

Article 33 People's Bank of China have the right to require financial institutions to submit balance sheets, profit and loss statements and other financial and accounting statements and materials in accordance with regulations.

Article 34: People's Bank of China are responsible for uniformly compiling national financial statistics and statements, and publishing them in accordance with relevant national provisions.

Article 35 People's Bank of China shall guide and supervise the financial operations of State policy banks.

Article 36: People's Bank of China shall establish and complete auditing and inspection systems for their own systems, and strengthen internal supervision and management.

Chapter VI Financial Accounting

Article 37 An independent financial budget management system shall be implemented People's Bank of China.

After being examined and examined by the financial department of the State Council, the People's Bank of China budget shall be included in the central budget and subject to the budget implementation supervision of the financial department under the State Council.

Article 38 The net profit after People's Bank of China deducting the income of each fiscal year minus the expenditure of that year and drawing the total reserve in accordance with the proportion approved by the financial department under the State Council shall be paid to the central treasury.

People's Bank of China losses are covered by central financial allocations.

Article 39 The financial revenue and expenditure and accounting affairs of People's Bank of China shall implement laws, administrative regulations and the unified financial accounting system of the State, and accept the auditing and supervision of the auditing organs under the State Council and the financial departments respectively in accordance with law.

Article 40 The People's Bank of China shall, within three months after the end of each fiscal year, prepare balance sheets, profit and loss statements and relevant financial and accounting statements, and prepare annual reports, which shall be published in accordance with the relevant provisions of the State.

The fiscal year of People's Bank of China runs from January 1 to December 1 of the Gregorian calendar.

Chapter VII: Legal Liability

Article 41 Whoever counterfeits renminbi, sells counterfeit renminbi, or transports renminbi knowing that it is counterfeit, shall be investigated for criminal responsibility in accordance with law.

Whoever alters renminbi, sells altered renminbi, or transports it knowing that it is altered renminbi, which constitutes a crime, shall be investigated for criminal responsibility in accordance with law; Where the circumstances are minor, the public security organs shall detain them for up to 15 days and fine them up to 5,000 yuan.

Article 42 Whoever purchases forged or altered renminbi, or knowingly possesses or uses forged or altered renminbi, which constitutes a crime, shall be investigated for criminal responsibility in accordance with law; Where the circumstances are minor, the public security organs shall detain them for up to 15 days and fine them up to 5,000 yuan.

Article 43 Where renminbi designs are illegally used on publicity materials, publications or other commodities, the People's Bank of China shall order corrections, destroy the illegally used renminbi designs, confiscate the unlawful gains, and impose a fine of not more than 50,000 yuan.

Article 44 Where tokens and coupons are printed or sold to replace renminbi circulating in the market, the People's Bank of China shall be ordered to stop the illegal act and imposed a fine of not more than 200,000 yuan.

Article 45: Where laws and administrative regulations on financial supervision and administration are violated, People's Bank of China shall order the illegal conduct to cease and give administrative punishments in accordance with law; Where a crime is constituted, criminal responsibility shall be pursued in accordance with law.

Article 46: Where parties are dissatisfied with administrative punishments, they may initiate administrative litigation in accordance with the "Administrative Procedure Law of the People's Republic of China."

Article 47: Where People's Bank of China have any of the following conduct, the directly responsible managers and other directly responsible personnel are to be given administrative sanctions in accordance with law; Where a crime is constituted, criminal responsibility shall be pursued in accordance with law:

(1) Providing loans in violation of the provisions of the first paragraph of Article 29 of this Law;

(2) Providing guarantees to units and individuals;

(3) Unauthorized use of issuance funds.

Where one of the acts listed in the preceding paragraph causes losses, the directly responsible managers and other directly responsible personnel shall bear part or all of the liability for compensation.

Article 48: Where local governments, government departments at all levels, social groups, and individuals force People's Bank of China and their staff to provide loans or guarantees in violation of article 29 of this Law, the directly responsible managers and other directly responsible personnel are to be given administrative sanctions in accordance with law; Where a crime is constituted, criminal responsibility shall be pursued in accordance with law; If losses are caused, they shall bear part or all of the liability for compensation.

Article 49: Where People's Bank of China staff members leak state secrets, which constitutes a crime, criminal responsibility is pursued in accordance with law; Where the circumstances are minor, administrative sanctions are to be given in accordance with law.

Article 50 Where a staff member of a People's Bank of China engages in corruption or bribery, engages in irregularities for personal gain, abuses his power, or neglects his duties, which constitutes a crime, he shall be investigated for criminal responsibility in accordance with law; Where the circumstances are minor, administrative sanctions are to be given in accordance with law.

Chapter VIII Supplementary Provisions

Article 51: This Law shall take effect on the date of promulgation.