Wikiprocedure > China


China - Apply for a Banking License

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Procedure[edit]

To facilitate the establishment of commercial banks and improvement of internal control, effectively guard against risks and ensure the stable and sound operation of the banking sector, the Guidelines are formulated in accordance with Law of the People's Republic of China on Regulation of and Supervision over the Banking Industry, Law of the Peoples Republic of China on Commercial Banks and other laws and regulations.

The scope of business shall be specified in the articles of association of the commercial bank, and submitted to the banking regulatory authority under the State Council for approval.

Upon approval of the People's Bank of China, commercial banks may engage in the business of the settlement and sale of foreign exchange.

The business operations of commercial banks shall be governed by the principles of safety, liquidity and efficiency. Commercial banks shall make their own decisions regarding their business operations, take responsibility for their own risks, assume sole responsibility for their profits and losses and exercise self-restriction.

Commercial banks shall, pursuant to law, conduct business operations without interference from any unit or individual.

Commercial banks shall independently assume civil liability with their entire legal person property.



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Required Documents[edit]

  • A written application, in which the name, location, registered capital, scope of business, etc. of the proposed commercial bank are clearly stated;
  • A feasibility study; and
  • Other documents and information to be provided as specified by the banking regulatory authority under the State Council.
  • A draft of the articles of association;
  • The qualification certificates of the director or other senior administrator who is to hold office;
  • An investment verification certificate issued by a statutory investment verification organization;
  • A list of the names, capital contributions and shares of shareholders;
  • Credit-worthiness certificates and relevant information concerning the shareholders that hold five percent or more of the registered capital each;
  • Business policies and plans;
  • Information concerning the place of business, security and precautionary measures and other facilities relevant to business operations; and
  • Other documents and information as specified by the banking regulatory authority under the State Council.


Office Locations & Contacts[edit]

China Banking Regulatory Commission
Jia N0.15 Financial Street, Xicheng District, Beijing, 100140
Tel: 010-66279113
Web: www.cbrc.gov.cn
CBRC Offices



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Eligibility[edit]

A commercial bank shall meet the following requirements for establishment:

  • having articles of association that conform to this Law and the Company Law of the People's Republic of China;
  • having the minimum amount of registered capital as specified in this Law;
  • having directors and other senior administrators with the expertise and experience in work commensurate with the positions they are holding;
  • having a sound organizational structure and management system; and
  • having the required place of business, security and precautionary measures and other facilities relevant to it business operations.



Fees[edit]

Explain the fees structure which is required for obtaining the certificate/document.



Validity[edit]

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever



Documents to Use[edit]

Please attach documents that can be used by people. e.g. links



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Sample Documents[edit]

Please attach sample completed documents that would help other people.



Processing Time[edit]

Please explain processing time taken in obtaining the document/certificate.



Related Videos[edit]

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	



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Instructions[edit]

The scope of business shall be specified in the articles of association of the commercial bank, and submitted to the banking regulatory authority under the State Council for approval.

Upon approval of the People's Bank of China, commercial banks may engage in the business of the settlement and sale of foreign exchange.



Required Information[edit]

  • Full Name of Applicant
  • Address of Applicant
  • Location of Commercial bank
  • License Number
  • A tax clearance certificate.
  • Evidence of provisional tax payment
  • Full names, addresses and designations of the employees of the commercial Bank.
  • Proof of legal identification.
  • Proof of legal address. House rent receipts, and utility bills stating your house address are acceptable.
  • Bank statement.


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Need for the Document[edit]

For the purposes of the Law, the term "commercial banks" means enterprise legal persons that are established in conformity with this Law and the Company Law of the People's Republic of China and that take in deposits from the general public, grant loans, handle settlements, etc.

The establishment of commercial banks shall be subject to examination and approval by the banking regulatory authority under the State Council.

No unit or individual may engage in commercial banking business such as taking in deposits from the general public, and no unit may use the word "bank" in its name, without approval of the banking regulatory authority under the State Council.



Information which might help[edit]

A commercial bank the establishment of which has been approved shall be issued a permit for operation by the banking regulatory authority under the State Council and, on the strength of such permit, register with the administrative department of industry and commerce and obtain a business license from it.


Other uses of the Document/Certificate[edit]

Commercial banks may engage in some or all of the following business operations:

  • taking in deposits from the general public;
  • granting short-term, medium-term and long-term loans;
  • handling domestic and foreign settlements;
  • handling the acceptance and discounting of negotiable instruments;
  • issuing financial bonds;
  • acting as an agent for the issue, honoring and underwriting of government bonds;
  • buying and selling government bonds and financial bonds;
  • engaging in interbank lending;
  • buying and selling foreign exchange and acting as an agent for the purchase and sale of foreign exchange;
  • engaging in the business of bank cards;
  • providing letter of credit services and guaranty;
  • acting as an agent for the receipt and payment of money and acting as an insurance agent;
  • providing safe deposit box services; and
  • other business operations as approved by the banking regulatory authority under the State Council.



External Links[edit]

Law of the People's Republic of China on Commercial Banks

Commercial Bank Law of the People's Republic of China

China Banking Regulatory Commission

People's Bank of China


Others[edit]

A commercial bank shall obtain the approval of the banking regulatory authority under the State Council for making any of the following changes:

  • change of name;
  • change in the registered capital;
  • change of location of the head office or a branch;
  • adjustment of the scope of business;
  • change of shareholders that hold five percent or more of the total amount of capital or shares each;
  • revision of the articles of association; or
  • changes in other matters as are governed by the regulations of the banking regulatory authority under the State Council.