PRC People's Bank of China Law (Revised)

Promulgated: December 27 2003
Effective: February 1 2004

Main contents: Under the revised Law the Monetary Policy Committee of the People¡¦s Bank of China shall play an important role in the state¡¦s macroeconomic control as well as in the formulation and adjustment of monetary policies (Article 12). In addition, the People¡¦s Bank of China shall perform six types of regulatory duties:
-  regulate the interbank lending market, the interbank bond market, the interbank foreign exchange market and the gold market (Article 4);
-    formulate rules for payment and settlement jointly with the State Council banking regulatory authority (Article 27);
-    carry out inspection and supervision of financial institutions and other work units or individuals when implementing such activities as administration of provisions for deposit payments, foreign exchange control and anti-money laundering (Article 32);
-    when it is necessary for the implementation of monetary policies and the maintaining of financial stability, suggest that the State Council banking regulatory authority carry out inspection and supervision on financial institutions of the banking industry (Article 33);
-    with the approval of the State Council, carry out inspection and supervision on financial institutions of the banking industry that have payment difficulties and where such difficulties may lead to a financial crisis (Article 34); and
-    when it is necessary for performing its duties, request financial institutions of the banking industry to submit required balance sheets, profit statements and other financial accounting and statistics statements or information (Article 35).
The revised Law also states that the State Council is to establish a coordinating mechanism for regulation of the finance industry (Article 9).