Article 15 The banking regulatory agency of the State Council shall, within six months from the date of receiving the complete application documents required for the preparation for an operational foreign-funded bank, make a decision to approve or not to approve the preparation application and notify the applicant of such decision in writing; if deciding not to approve the preparation application, give the reasons thereof.

Where, in special circumstances, the banking regulatory agency of the State Council cannot complete the examination and make a decision to approve or not to approve the preparation application within the time limit prescribed in the preceding paragraph, it may appropriately extend the examination time limit and shall notify the applicant of the extension in writing; however, the extended time limit shall not exceed three months.

The applicant shall, by presenting the approval document for the preparation, obtain an application form for business commencement from the banking regulatory agency in the place where the proposed bank is to be established.

Article 16 The applicant shall complete the preparation of the proposed bank within six months from the date of obtaining the approval for preparation. Where the applicant fails to complete the preparation within the prescribed time limit, it shall provide the reasons thereof; and with the approval by the banking regulatory agency in the place where the proposed bank is to be established, the applicant may extend the preparation period for three months. Where the applicant fails to complete the preparation within the extended period, the decision of approval for the preparation issued by the banking regulatory agency of the State Council shall automatically become void.

Article 17 Upon completing the preparation and passing the preparation inspection, the applicant shall submit the completed application form for business commencement and the following documents to the banking regulatory agency in the place where the proposed bank is to be established:

(1) the name-list and curricula vitae of the principal persons-in-charge of the proposed bank;

(2) the power of attorney to the proposed principal persons-in-charge of the bank;

(3) the capital verification certificate issued by a statutory capital verification agency;

(4) documentation on security precautions and other business-related facilities;

(5) a guaranty letter issued by the foreign bank establishing a branch, stating that it shall be responsible for all the taxes and other indebtednesses the proposed branch will incur; and

(6) other documents required by the banking regulatory agency of the State Council.

The banking regulatory agency in the place where the proposed bank is to be established shall submit the application documents together with its examination opinion to the banking regulatory agency of the State Council in due time.

Article 18 The banking regulatory agency of the State Council shall, within two months from the date of receiving the complete application documents for business commencement, make a decision to approve or not to approve the application for business commencement and notify the applicant of such a decision in writing; if deciding to approve the application for business commencement, issue a financial services permit; if deciding not to approve the application for business commencement, give the reasons thereof.

Article 19 An approved operational foreign-funded bank shall, by presenting its financial services permit, register with the administrative department for industry and commerce and obtain a business licence.

Article 20 To establish a foreign bank representative office, the applicant shall submit the following application documents to the banking regulatory agency in the place where the proposed representative office is to be established:

(1) an application letter including, the name and location of the proposed representative office;

(2) the feasibility study report;

(3) the applicant's articles of association;

(4) an organizational chart, name-list of major shareholders, overseas branches and associated enterprises of the applicant and its group;

(5) the applicant's annual reports for the most recent three years;

(6) the applicant's anti-money laundering systems;

(7) photocopies of the personal identification, academic degree certificate and curriculum vitae of the appointed chief representative, as well as his statement of a clean record;

(8) the power of attorney to the appointed chief representative;

(9) photocopies of the business licence or financial services permit issued by the financial regulatory authority of the applicant's home country or region, and its written opinions on the application; and

(10) other documents specified by the banking regulatory agency of the State Council.

The banking regulatory agency in the place where the proposed representative office is to be established shall submit the application documents, together with its examination opinion to the banking regulatory agency of the State Council in due time.

Article 21 The banking regulatory agency of the State Council shall, within six months from the date of receiving the complete application documents for establishing a representative office by a foreign bank, make a decision to approve or not to approve the application for its establishment and notify the applicant of such decision in writing; if deciding not to approve the application for its establishment, give the reasons thereof.

Article 22 An approved foreign bank representative office shall, by presenting the approval document, register with the administrative department for industry and commerce and obtain a business registration certificate.

Article 23 The documents listed in articles 14, 17 and 20 of these regulations, with the exception of the annual reports, if prepared in a foreign language, shall be submitted together with a Chinese translation thereof.

Article 24 A foreign bank, with the approval of the banking regulatory agency of the State Council, may change any of its branches established within the territory of the People's Republic of China into a wholly foreign-funded bank solely funded by its parent bank, under the principles of legitimacy, prudence and business continuity. The applicant shall file an application for establishing a wholly foreign-funded bank in accordance with the conditions, procedures and application document requirements prescribed by the banking regulatory agency of the State Council.

Article 25 If a foreign bank branch changes into a wholly foreign-funded bank solely funded by its parent bank, such a foreign bank may, with the approval of the banking regulatory agency of the State Council, maintain one branch undertaking foreign exchange wholesale business within the prescribed time limit. The applicant shall file an application for such a branch in accordance with the conditions, procedures and application document requirements prescribed by the banking regulatory agency of the State Council.

The term "foreign exchange wholesale business" in the preceding paragraph means foreign exchange business services provided to customers other than individual customers.

Article 26 The directors, senior executives and the chief representative of a foreign-funded bank shall meet the qualification requirements prescribed by the banking regulatory agency of the State Council, and their appointment shall be subject to approval by the banking regulatory agency of the State Council.

Article 27 A foreign-funded bank shall, under any of the following circumstances, be subject to the approval by the banking regulatory agency of the State Council, and shall submit application documents in accordance with relevant requirements, and shall register with the administrative department for industry and commerce in accordance with law:

(1) changing registered capital or operating capital;

(2) changing the bank's name, or business or office premises;

(3) making adjustment to the scope of business;

(4) changing shareholders or their equity or stock holdings;

(5) making amendments to the articles of association; or

(6)any other circumstances prescribed by the banking regulatory agency of the State Council.

Where a foreign-funded bank replaces its directors, senior executives or the chief representative, it shall report the appointments to the banking regulatory agency of the State Council for the approval of qualifications.

Article 28 Where a foreign-funded bank or a Chinese-foreign joint venture bank changes its shareholder, the new shareholder shall satisfy the requirements for the shareholder provided in article 9, 10 or 11 of these regulations.

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