PRC Commercial Banking Law (Revised)

Promulgated: December 27 2003
Effective: February 1 2004

Main contents: With the new revision, the State Council banking regulatory authority has taken over from the People's Bank of China the regulation of commercial banks (Article 10). Prior to the revision, commercial banks were not allowed to engage in trust investment or stock business, or invest in immovable property that was not for their own use, non-bank financial institutions or enterprises. According to the revised Law these will be possible if the state provides otherwise. The change of shareholders of a commercial bank is now subject to approval if the percentage of the total capital or total number of shares held is 5% or more (Article 24).
Related legislation: PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p21 and PRC People's Bank of China Law (Revised), Dec 27 2003, CLP 2004 No.1 p5