China Banking Regulatory Commission, Circular on Matters Relevant to Revising the Approval Procedure for the Establishment of Rural Banks

Main contents: Currently the China Banking Regulatory Commission (CBRC) is responsible for the administration of the number of rural banks to be established, while the main promoter bank, locations and the actual market entry procedures are carried out by banking regulatory bureaux. According to the revision under Article 1 of the Circular, the CBRC shall determine the main promoter, and the number and locations of banks to be established, and banking regulatory bureaux shall be responsible for the actual market entry procedures (Article 1). In regards to locations of rural banks, the original link-up between locations across the country shall be changed to link-up between provinces. In terms of priority for establishment of rural banks, western regions shall take precedence over eastern regions, and less developed counties shall take precedence over developed counties (Article 2).