1. Its major functions are:

(1) To stipulate regulations and provisions for banking supervision; draft laws, and administrative regulations and make proposals for their drafts and amendments;

(2) To approve the establishment, amendment, termination and business scope of banking institutions and their subsidiaries;

(3) To supervise banking institutions on and off the spot, and punish those of unlawful behaviors according to law;

(4) To examine the qualifications of senior managers of banking institutions;

(5) To compile statistics and reports of banking institutions in the whole country, copy to the People?s Bank of China and publish them in accordance with government regulations;

(6) To offer opinions and proposals together with the Ministry of Finance and the People?s Bank of China, with regard to how to deal with emergency risks of deposit banking institutions;

(7) To be responsible for the routine management of supervisory boards of major state-owned banking institutions.

2. The commission consists of fifteen departments:

(1) General Affairs Office

To organize and coordinate daily work of the commission?s headquarters; to be responsible for drafting documents, organizing important conferences, taking care of confidential documentation, preparing documents, filing documents, handling letters and visits, maintaining secrets, compiling information, releasing news to the press and maintaining security.

(2) Policy & Regulation Department

To draft regulations and provisions for supervision of banking institutions; draft laws and administrative regulations, make proposals for drafts or amendments; be responsible for administrative reconsiderations and responding to charges; supervise and coordinate the executions of laws and regulations; conduct legal consultation, organize legal education and publicity for the banking industry; investigate and study important issues in the reform, development and supervision of the banking industry, make proposals for policies on the development of the banking industry; in accordance with unified arrangement, organize the performance of banking reform programs and make proposals for deepening reforms; draft documents for important conferences; compile and issue information, releases and statements.

(3) 1st Department for Banking Supervision

Responsible for supervision of state-owned commercial banks, it examines the establishment, amendment, termination and business scope of relative institutions in accordance with the laws; drafts supervision regulations; conducts supervision of relative institutions on and off the spot; supervises the operational management, internal control and risks such as the ratio of assets and liabilities, quality of assets, business activities, and financial payments; investigates and punishes those of unlawful behaviors; and examines the qualification of senior managers.

(4) 2nd Department for Banking Supervision

Responsible for supervision of share-holding commercial banks and city commercial banks, it examines the establishment, amendment, termination and business scope of relative institutions in accordance with the laws; drafts regulations on supervision; conducts supervision of relative institutions on and off the spot; supervises the operational management, internal control and risks such as the ratio of assets and liabilities, quality of assets, business activities, financial payments; investigates and punishes those of unlawful behaviors; and examines the qualification of senior managers.

(5) 3rd Department for Banking Supervision

Responsible for the supervision of policy-oriented banks and foreign banks, it examines the establishment, amendment, termination and business scope of relative institutions in accordance with the laws; drafts regulations on supervision; conducts supervision of relative institutions on and off the spot; supervises the operational management, internal control and risks such as the ratio of assets and liabilities, quality of assets, business activities and financial payments; investigates and punishes those of unlawful behaviors; and examines the qualification of senior managers.

(6) Supervision Department for Non-banking Financial Institutions

Responsible for the supervision of non-banking financial institutions (excluding institutions of securities, futures and insurance), it examines the establishment, amendment, termination and business scope of relative institutions in accordance with the laws; drafts regulations on supervision; conducts supervision of relative institutions on and off the spot; supervises the operational management, internal control and risks such as the ratio of assets and liabilities, quality of assets, business activities and financial payments; investigates and punishes those of unlawful behaviors; and examines the qualification of senior managers.

(7) Supervision Department for Co-operative Financial Institutions

Responsible for co-operative financial institutions for rural and urban saving business, it standardizes the management of co-operative financial institutions, studies and promotes the reform of co-operative financial institutions; drafts regulations of supervision for co-operative financial institutions in their management of ratio of assets and liabilities, quality of assets, risks control, interest rate, supervises the risks, urges and supervises them in their internal supervision and restrictions; drafts management measures on the establishment, business scope and qualification of legal person of co-operative financial institutions and organizes the executions of the measures; and investigates and punishes those of unlawful behaviors.

(8) Statistics Department

To compile statistics from banking institutions of the whole country and make financial reports, copy to the People?s Bank of China and publish them in accordance with government regulations; compile statements on finance and loans of banking institutions and copy to the Ministry of Finance; draft regulations on compiling statistics; analyze statistics from banking institutions; organize the build-up of data base and the information system of China Banking Regulatory Commission.

(9) Accounting Department

To manage the accounting work of China Banking Regulatory Commission, prepare annual financial budget and final financial statement of the Commission.

(10) International Department

To conduct official and business contacts between China Banking Regulatory Commission and international financial institutions, supervisory institutions of financial sectors in relative countries and regions; and manage foreign affairs of the Commission.

(11) Supervision Department

To supervise and examine the execution of state laws, regulations and policies by banking institutions; in accordance with laws and disciplines, investigate and punish those of behaviors against state laws, regulations and disciplines, handle accusations, charges and appeals; and be responsible for supervision work in institutions of China Banking Regulatory Commission.

(12) Personnel Department

To draft regulations and measures for management of human resources in China Banking Regulatory Commission and its agencies; be responsible for personnel management in the Commission and its agencies and departments concerned; in accordance with regulations, be responsible for the routine management of senior managers of relative financial institutions; be responsible for the training of employees in the Commission and its agencies.

(13) Publicity Department

To be responsible for publicity work within China Banking Regulatory Commission and its agencies.

(14) Masses Work Department

To be responsible for instructing and coordinating the mass work in China Banking Regulatory Commission and its agencies.

(15) Working Department for Supervisory Boards

To be responsible for specific managerial work of supervisory boards of banking institutions; draft regulations for the work of supervisory boards; re-examine and transfer reports from supervisory boards, and be responsible for the coordination of supervisory boards with other departments concerned.

3. Other affairs

(1) With regard to the division of labor and responsibilities in financial supervisions, China Banking Regulatory Commission and the People?s Bank of China shall observe the principles of complementing macro-control with financial supervision, mutual promotion, timely information sharing, and establishing a cooperative working system and a mechanism of mutual assistance through the division of labor.

(2) China Banking Regulatory Commission sets up supervisory bureaus at the provincial level, sub-bureaus at the prefectural (municipal) level and representative offices at the county (city) level depending on the necessity of implementing supervision. The Commission directly runs its agencies in local areas.

(China.org.cn June 5, 2003)