Legal basis: Article 19 of People's Republic of China (PRC) Commercial Bank Law. Commercial banks may set up branches in People's Republic of China (PRC) and abroad according to their business needs. The establishment of branches must be examined and approved by the the State Council Banking Regulatory Authority. Branches in People's Republic of China (PRC) shall not be established according to administrative divisions.
When a commercial bank establishes a branch within the territory of People's Republic of China (PRC), it shall allocate working capital suitable for its business scale in accordance with the provisions. The sum of working capital allocated to each branch shall not exceed 60% of the total capital of the head office.