Law of the People's Republic of China on the People's Bank of China
Law of the People's Republic of China on the People's Bank of China
Law of the People's Republic of China on the People's Bank of China
Order of Chairman of the People's Republic of China [1995] No. 46
Adopted on March 18, 1995, at the Third Session of the Eighth National People's Congress of the People's Republic of China.
CONTENTS
Chapter I General Provisions
Chapter II Organization
Chapter III Renminbi
Chapter IV Business Operations
Chapter V Supervision And Control Over The Banking Industry
Chapter VI Finance And Accounting
Chapter VII Legal Liabilities
Chapter VIII Appendix
Chapter I General Provisions
Article 1 This law is formulated for the purpose of establishing the status and functions of People's Bank of China (PBC), ensuring the correct formulation and implementation of the State monetary policies, instituting and perfecting a macro-control system through the central bank and strengthening supervision and administration over the banking industry.
Article 2 PBC is the central bank of the People's Republic of China.
As the central bank, PBC shall formulate and implement monetary policies and exercise supervision and control over the banking industry in the country under the leadership of the State Council.
Article 3 The aim of monetary policies is to maintain the stability of the value of the currency and thereby promote economic growth.
Article 4 PBC shall perform the following functions:
1. formulate and implement monetary policies in accordance with the law;
2. issue Renminbi (RMB) and control its circulation;
3. examine, approve, supervise and administer banking institutions in accordance with regulations;
4. supervise and control the financial market in accordance with regulations;
5. promulgate ordinances and rules concerning financial administration and business;
6. hold, administer and manage the State foreign exchange reserve and bullion reserve;
7. manage the State treasury;
8. maintain the normal operation of the systems for making payments and settling accounts;
9. be responsible for statistics, investigation, analysis and forecasting for the banking industry;
10. engage in relevant international banking operations in its capacity as the central bank of the State; and
11. other functions assigned to it by the State Council.
In order to implement monetary policies, PBC may carry out financial operations in accordance with the relevant provisions of Chapter 4 of this law.
Article 5 PBC shall report its decisions concerning the annual supply of banknotes, interest rates, foreign exchange rates, and other major issues specified by the State Council to the State Council for approval before implementation.
PBC shall immediately carry out decisions on matters concerning monetary policies, but not specified in the preceding paragraph, and report them to the State Council for the record.
Article 6 PBC shall submit to the Standing Committee of the National People's Congress an annual report on monetary policies and the supervision and administration of the financial affairs.
Article 7 PBC shall, under the leadership of the State Council, independently implement monetary policies, perform its functions and carry out its operations according to law free from any intervention by local governments or government departments at all levels, public organizations or individuals.
Article 8 All capital of the PBC is allocated by the State and owned by the State.
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