December 1, 1996
Shanghai Branch of the People's Bank of China:
p>The State Council has agreed to conduct a pilot program for foreign-funded financial institutions to operate RMB business in Pudong, Shanghai, and allows foreign-funded financial institutions located in Pudong that meet the prescribed conditions to engage in RMB business upon approval. If a foreign-funded financial institution located in Puxi applies to operate RMB business in Pudong, it must move its branch to Pudong. It can retain a branch in Puxi belonging to the Pudong branch.
Please follow this principle and the provisions of the "Interim Administrative Measures for the Pilot Program of RMB Business Operation by Foreign-funded Financial Institutions in Pudong, Shanghai" (attached), and proceed with the operation of foreign-funded financial institutions in Pudong. Preparations for the pilot operation of RMB business.
Attachment:
Interim Administrative Measures for the Pilot Operation of RMB Business by Foreign-funded Financial Institutions in Pudong, Shanghai
Article 1: In order to manage the pilot operation of RMB business by foreign-funded financial institutions, this document is formulated in accordance with the "Commercial Bank Law of the People's Republic of China" and the "Regulations of the People's Republic of China on the Administration of Foreign-funded Financial Institutions" Method.
Article 2 Foreign-funded financial institutions that apply to operate RMB business must meet the following conditions:
(1) It has been in business in the People's Republic of China for more than 3 years, has no illegal or bad records, and has been profitable for two consecutive years before applying;
(2) Before applying In one year, the average monthly balance of domestic foreign exchange loans of foreign bank branches is more than 150 million U.S. dollars. The average monthly balance of domestic foreign exchange loans of joint venture banks, joint venture financial companies, wholly-owned banks and wholly-owned financial companies is more than 100 million U.S. dollars. The balance of domestic foreign exchange loans accounts for more than 100 million U.S. dollars. More than 50% of total assets.
Article 3 A foreign-funded financial institution that applies to operate RMB business shall submit a letter signed by the chairman or general manager (president) of the foreign-funded financial institution to the Shanghai Branch of the People's Bank of China. The application form for operating RMB business shall, after being reviewed and approved by the Shanghai Branch of the People's Bank of China, be submitted to the Head Office of the People's Bank of China for approval.
Article 4 approvedForeign-funded financial institutions that engage in RMB business should obtain a "License for RMB Business" with the approval document issued by the Head Office of the People's Bank of China.
Article 5 Foreign financial institutions approved to operate RMB business shall increase foreign exchange funds equivalent to no less than 30 million yuan and convert them into RMB as RMB business working capital (capital).
Article 6 With the approval of the Head Office of the People's Bank of China, foreign-funded financial institutions may operate all or part of the following RMB businesses in Shanghai:
(1) Deposit;
(2) Loan;
(3) Settlement;
(4) Guarantee;
(5) Investment in government bonds and financial bonds ;
(6) Other approved RMB businesses.
The deposits referred to in this article refer to the deposits of foreign-invested enterprises and foreigners and the transfer deposits of RMB loans from non-foreign-invested enterprises by the foreign-invested financial institutions.
The loans and guarantees mentioned in this article refer to the RMB loans and guarantees of foreign-invested enterprises and non-foreign-invested enterprises that obtain foreign exchange loans from foreign-invested financial institutions.
Foreign-funded financial companies and joint venture financial companies can only accept RMB deposits with an amount of more than 1 million yuan and a term of more than half a year, and are not allowed to operate RMB settlement business.
