(2) have the minimum amount of share capital provided for in this Act; Closing clearing, a well-known mechanism in international derivatives transactions, is not a legal term expressly recognized by PRC law, which creates uncertainty as to its applicability. This is despite the fact that the concept has been introduced in derivative framework agreements prevalent in the Chinese market, including the NAFMII Framework Agreement (2009 version) (NAFMII Framework Agreement), which applies to derivative financial transactions. Under China`s bankruptcy law,90 the administrator has the right to cancel or continue the performance of contracts entered into prior to the acceptance of the bankruptcy application.91 This choice calls into question the applicability of closing set-off within the Chinese legal framework and increases the market risk of derivatives transactions. In addition, the administrator has the right to ask the courts to revoke any settlement reached between the debtor and the individual creditors within six months of the courts` acceptance of the insolvency claim.92 This further affects the enforceability of the closing set-off. In particular, as memoranda issued by international industry associations classify China as a “non-clearing jurisdiction,” Chinese and foreign banks typically calculate their counterparty exposures and associated regulatory cost of capital when dealing with Chinese bank derivatives counterparties on a gross basis. Article 28 The acquisition by an entity or individual of five percent or more of the total amount of shares of a commercial bank requires the prior approval of the People`s Bank of China. Chapter III Protection of Depositors Level 1 Class 1 equity is the sum of paid-up capital or common shares, capital reserve, excess reserve, general risk reserve, retained earnings and a portion of the capital of minority shareholders. The additional Tier 1 capital of a commercial bank includes other Tier 1 capital instruments and their premiums, as well as a portion of the minority shareholders` capital. The Tier 2 capital of a commercial bank is the sum of Tier 2 capital instruments and their premiums, provisions for loan losses33 and a portion of the capital of minority shareholders. (2) the commercial bank is already able to resume its normal commercial activities before the end of the regularity period; or The above banks must obtain a separate authorization from the PBOC for the settlement and sale of currencies.

However, branches of foreign banks are excluded from credit card transactions and yuan transactions with Chinese citizens, with the exception of accepting fixed-term deposits from Chinese citizens in the amount of at least 500,000 yuan.20 Representative offices may only carry out non-commercial transactions in relation to foreign banks represented by such offices, such as liaison, market exploration and advisory activities.21 The CBIRC was created by the merger of the CBRC and the China Insurance Regulatory Commission as part of the central government`s efforts to improve the efficiency of financial regulation and eliminate regulatory arbitrage. CBIRC is responsible for drafting and promulgating rules and regulations for the banking and insurance sector in China. It also audits and supervises banks and insurance companies, collects and publishes statistics on the banking system, approves the establishment or expansion of banks and resolves potential liquidity, solvency or other problems that individual banks may encounter. Commercial banks in the PRC are mainly subject to the Commercial Banks Act and are authorized by the CBIRC or its local counterparts to carry out banking activities. In order to carry out licensed banking activities, the CBIRC has adopted the enforcement measures for administrative licensing issues related to China-financed commercial banks,17 which apply, inter alia, to the six largest commercial banks, commercial stock banks and municipal commercial banks mentioned above, as well as the implementing measures for administrative licensing issues related to small and medium-sized financial institutions. Rural. 18, which, inter alia, apply to rural commercial banks, rural cooperative banks, rural credit unions and county banks.