How To Apply for a Banking License In China
- Facilitate in the creation of commercial banks and to improve the efficiency of internal controls, to effectively protect against threats and ensure the solid and stable functioning of the banking sector the guidelines are designed in accordance with the Law of the Chinese People’s Republic of China on Regulation of and Supervision over the Banking Industry of the People’s Republic of China, the Law of the Peoples Republic of China on Commercial Banks as well as other laws and rules.
- The nature of the business must be defined in the Articles of Association for the bank that is commercial and then submitted to the bank’s regulatory authority of the State Council for approval.
- After approval by The People’s Bank of China, commercial banks are able to be involved in the sale and settlement in foreign currency.
- The commercial business activities of banks must be guided by the rules of safety, liquidity , and efficiency. Commercial banks should take their own decisions about their business operations, assume on their own risk and take sole accountability for their profits as well as losses, and apply self-restriction.
- Commercial banks must, according to law, conduct their business operations free of interference from any entity or person.
- Commercial banks must independently accept civil liability for their entire personal property.
Documents Required Banking License
- A written application that includes the name, address the registered capital, location, area of business and more. of the commercial bank that is proposed are clearly stated.
- A feasibility study A feasibility study; and
- Other documents and other information must be supplied as directed by the bank’s regulator under the State Council.
- Draft of the Articles of association
- The certifications of the director or any other higher-ranking administrator who will be in office;
- A certificate of investment verification issued by an investment verification agency that is a statutory entity;
- A list of names of capital contributions, shares and names of shareholders.
- Credit-worthiness certificates and pertinent information about the shareholders who are holding five percent or more the capital registered each
- Plans and policies for business;
- Information on the location of security, business, and other measures, as well as other facilities related to business operations.
- Other documents and data as required by the bank’s regulatory authority under the State Council.
Office Locations and Contacts
China Banking Regulative CommissionJia N0.15 Financial Street, Xicheng District, Beijing, 100140
What Are All The Eligibility
Commercial banks must be able to meet the following conditions to be established:
- with Articles of Association that are in accordance to the provisions of this Law and having articles of association that comply with this Law and Company Law of the People’s Republic of China;
- that have the minimum of registered capital as stipulated in the Law;
- with directors and other top administrators with expertise and experience that is in line to the position they hold.
- that have a sound organization structure and management system having a solid organizational structure and management system
with the necessary place of security and business measures, as well as other facilities pertinent to business activities.
- The nature of the business must be defined in the constitution for the bank that is commercial and then submitted to the bank’s regulator under the State Council for approval.
- With the approval of The People’s Bank of China, commercial banks are able to participate in the sale and settlement of currency.
- Full Name of the Applicant
- Address of the Applicant
- The location of the Commercial bank
- License Number
- A tax clearance document.
- The evidence of a tax provisional payment
- Complete names, addresses and the names of workers of the Commercial Bank.
- Documentation of legal identity.
- Evidence of a legal address. Rent receipts from your house, as well as utility bills that show your home location are accepted.
- Statement from the bank.
Need to have the Document
- To the extent of the Law”commercial banks” is the word used to describe “commercial banks” is a reference to enterprise legal entities which are established in accordance to this Law as well as the Company Law of the People’s Republic of China and which accept deposits from the public at large and grant loans, manage settlements, etc.
- Establishment of banks for commercial purposes must be subject to scrutiny and approval of the bank’s regulator under the State Council.
- The unit or the individual cannot engage in commercial banking like taking deposits from the general public and no business can make use of the word “bank” as its title without the approval from the banking regulatory authority of the State Council.
Information that could be helpful
A commercial bank whose established by one of them has received authorized will be granted a permit to operate by the bank’s regulatory authority of the State Council and, on the basis of this authorization, it is required to sign up with the department that administers commerce and industry and get an official business license from them.
Other uses for the Document/Certificate
Commercial banks are able to engage in one or more of the following business activities:
- receiving money from general citizens
- The company will provide short-term, medium-term and long-term loans;
- managing foreign and domestic settlements,
- dealing with the process of approving and discounting instruments that are negotiable;
- issuing financial bonds;
- acting as agent for the issue honoring and underwriting government bonds
- purchasing and selling bonds of the government and financial markets;
- engaging in interbank lending;
- purchasing and selling foreign exchange as an agent in the purchase and selling of foreign exchange
- operating in the field of bank cards
- that offer services of a credit letter and guaranty services;
- serving as agent for receiving and paying of money , and being an insurance representative;
- offering safe deposit box services as well as
- other business operations that have been authorized by the bank regulator under the State Council.
Commercial banks must obtain the approval from the bank regulatory authority of the State Council for making any changes in the following:
- Name change;
- Change of the capital registered
- relocation for the main office, or branch;
- modification of the business scope;
- changes in shareholders who own five percent or more the capital or shares;
- revision of the constitution of association revision of the articles of association
- Other changes are subject to the rules of the bank regulator in the State Council.