The term "foreign-funded legal person institutions" as mentioned in these Measures refers to wholly-owned banks, joint venture banks, wholly-owned financial companies and joint venture financial companies. Article 3 The CBRC and its dispatched offices shall implement administrative licensing for foreign-funded financial institutions in accordance with these Measures and the Provisions of China Banking Regulatory Commission on Procedures for the Implementation of Administrative Licensing. Article 4 The following matters of a foreign-funded financial institution shall be subject to administrative licensing by the CBRC and its dispatched offices: establishment, alteration, termination, adjustment of business scope, increase of business varieties, qualifications of senior management personnel, etc. Article 5 In addition to the annual report, the materials required to be submitted in these Measures, if written in a foreign language, shall be accompanied by a Chinese translation. The annual report printed in languages other than Chinese or English is accompanied by a Chinese or English translation. Article 6 If the information required by these Measures is signed by an authorized signatory, the power of attorney of the authorized signatory shall be submitted.
A copy of the business license or other license documents for financial business, the power of attorney, the letter of guarantee for foreign banks to assume tax and debt responsibilities for their branches in China, and the opinions (letters) of the relevant competent authorities in the country or region where they are located shall be notarized by the institutions recognized by the country or region where they are located or authenticated by the people's embassy or consulate of China in that country, except for the copy of the business license issued by the administrative department for industry and commerce of China. Chapter II Establishment of Institutions Section 1 Establishment of Wholly-funded Banks and Joint Venture Banks Article 7 The minimum registered capital of Wholly-funded banks and joint venture banks is 300 million yuan, which is a freely convertible currency. Registered capital shall be paid-in capital.
According to the business scope of wholly foreign-owned banks and Sino-foreign joint venture banks and the need of prudential supervision, the CBRC may increase the minimum registered capital. Article 8 To establish a wholly-owned bank or a joint venture bank, the following conditions shall be met:
(1) The investor of a wholly-owned bank or the foreign joint venture of a joint venture bank is a financial institution;
(2) The sole shareholder or the largest shareholder of a wholly-owned bank must be a commercial bank with a capital adequacy ratio of not less than 8%; The sole foreign shareholder or the largest foreign shareholder of a joint venture bank must be a commercial bank with a capital adequacy ratio of not less than 8%;
(3) The sole shareholder or the largest shareholder of a wholly-owned bank must set up a representative office in China for more than 2 years; The sole foreign shareholder or the largest foreign shareholder of the joint venture bank has set up a representative office in China; If the sole foreign shareholder or the largest foreign shareholder of the joint venture bank is a Hong Kong bank or a Macao bank, there is no need to set up a representative office first; The representative office established in China refers to the representative office supervised by the China Banking Regulatory Commission;
(4) The total assets at the end of 1 fiscal year before the sole shareholder or the largest shareholder of a wholly-owned bank or the sole foreign shareholder or the largest foreign shareholder of a joint venture bank applies for establishment shall not be less than 10 billion USD; If the sole shareholder or largest shareholder of a wholly foreign-owned bank or the sole foreign shareholder or largest foreign shareholder of a joint venture bank is a Hong Kong bank or a Macao bank, the total assets at the end of the fiscal year before the application for establishment shall not be less than USD 6 billion;
(5) The country or region where the investors of a wholly foreign-owned bank or the foreign joint venturer of a joint venture bank are located has a sound financial supervision and management system, and the investors of a wholly foreign-owned bank or the foreign joint venturer of a joint venture bank are effectively supervised by the relevant competent authorities of the country or region where they are located;
(six) the relevant competent authorities of the country or region where the investor of a wholly foreign-owned bank or the foreign investor of a joint venture bank is located agree to its application. Article 9 To establish a wholly-owned bank or a joint venture bank, the applicant shall also meet the following prudential conditions:
(1) Having a reasonable corporate governance structure;
(2) Good performance in continuous operation;
(3) The financial report is prepared according to the principle of prudent accounting, and the accounting firm has unreserved opinions on the financial report for the three years before the application;
(4) It has no record of major violations of laws and regulations and bad credit records;
(5) Having a good industry reputation and social image;
(6) Meeting other relevant requirements of laws and regulations for investors in the financial industry;
(7) Other prudential conditions stipulated by the CBRC. Article 10 The establishment of wholly foreign-owned banks and joint venture banks can be divided into two stages: application for preparation and application for establishment. Article 11 Applications for the establishment of wholly-owned banks and joint venture banks shall be accepted, examined and decided by the CBRC.
To apply for the establishment of a wholly-owned bank or a joint venture bank, the applicant shall submit the application materials to the CBRC, and send a copy of the application materials to the dispatched office of the CBRC where the proposed institution is located.
The dispatched office of the CBRC where the proposed institution is located shall submit written opinions to the CBRC within 20 days from the date of receiving the application materials. The CBRC shall, within 6 months from the date of receiving the complete application materials, make a decision on whether to approve or disapprove the preparation (that is, "accepting" or "not accepting" as mentioned in Article 13 of the Regulations on the Administration of Foreign-funded Financial Institutions in People's Republic of China (PRC)).