The local financial department of the provincial people's government shall, in accordance with laws, regulations and relevant provisions, supervise and manage local financial organizations and local financial activities, and undertake the specific work of the provincial financial work deliberation and coordination mechanism. Article 6 The people's governments of cities (prefectures) and counties (cities, districts) shall strengthen their leadership over local financial work within their respective administrative areas, formulate policies to support financial development, guarantee funds for local financial work, and prevent and resolve financial risks.
The institutions responsible for local financial work determined by the people's governments of cities (prefectures) and counties (cities, districts) shall undertake the daily inspection and statistical work of local financial institutions in accordance with relevant regulations, and accept the specific work of administrative punishment entrusted by the local financial department of the provincial people's government according to law.
The development and reform, finance, public security, agriculture and rural areas, commerce, state-owned assets supervision and management, market supervision and management departments of local people's governments at or above the county level shall perform their respective duties and do a good job in related work in accordance with the provisions of relevant laws and regulations. Article 7 Local financial institutions shall operate legally and in compliance with regulations, be honest and trustworthy, bear their own risks, accept supervision and management, and shall not harm national interests, social public interests and the legitimate rights and interests of others. Article 8 Local people's governments at or above the county level and their relevant departments shall strengthen the publicity and education of financial laws and regulations and related knowledge through radio, television, newspapers, internet and other media, so as to raise people's awareness of financial risk prevention.
Local financial organizations and trade associations shall organize the formulation and implementation of industry norms and professional ethics standards, educate their members to abide by financial laws and regulations, and improve the self-discipline management and restraint mechanism of the industry. Chapter II Local Financial Institutions Article 9 Local financial institutions engaged in relevant financial business shall comply with the Company Law of People's Republic of China (PRC), the Regulations on the Supervision and Administration of Financing Guarantee Companies and other laws and administrative regulations, as well as the relevant provisions of the central financial management departments and institutions, and obtain corresponding business qualifications after being approved or filed by the competent authorities in accordance with legal procedures. Article 10 Local financial institutions shall conduct business according to law, establish an appropriate system for financial consumers and investors, and introduce appropriate financial products and services to appropriate consumers and investors. When providing financial products and services, local financial institutions should truthfully disclose information that may affect their decision-making in a conspicuous way and in easy-to-understand language, and fully remind them of risks. Article 11 Local financial institutions shall, in accordance with the requirements of prudent operation, establish and improve business rules and management systems such as risk management, internal control, asset quality, risk preparation, risk concentration, related party transactions and asset liquidity. Twelfth local financial institutions shall, in accordance with the provisions, submit business information, financial and accounting reports, risk matters and other major issues to the local people's government in charge of local financial work. Article 13 The registered capital of a financing guarantee company shall not be less than 1 billion yuan, and it is paid-in monetary capital. Fourteenth small loan companies should provide loans and related consulting services to farmers, individual industrial and commercial households, urban residents, small and micro enterprises, agricultural management organizations and so on in the approved areas in accordance with the principles of small amount, dispersion and credit. Article 15 A financing guarantee company shall, in accordance with the principle of prudent operation, standardize the business activities of financing guarantee project evaluation, post-guarantee management, compensation liability recovery, and establish and improve the internal control system such as risk management. Article 16 Pawnshops shall operate within the approved scope, establish and improve the financial accounting system and internal audit system, and shall not lease, pledge, mortgage or use pawned goods during the pawning period. Article 17 A financial leasing company may, in accordance with relevant regulations, carry out financial leasing business by means of direct leasing, subletting, entrusted leasing, joint leasing, etc., establish and improve the internal risk control system, and form a good risk asset classification management system, lessee credit evaluation system, afterwards recovery disposal system and risk early warning mechanism.