Article 32 The National Interbank Funding Center shall take the responsibilities of routine monitoring and market statistics of the interbank borrowing market, submitting statistical data concerning the interbank borrowing market to the PBC at regular intervals, providing the statistical information about filing systems to the PBC branches at the provincial level, and timely reporting any abnormal situation in the interbank borrowing market to the PBC, and informing it to the relevant PBC branch at the provincial level.

Article 33 Where a financial institution fails to reveal information to the interbank borrowing market as prescribed by the PBC, or discloses any information including any false recording, misleading statement or major omission, the PBC is entitled to take such restraint measures as ordering it to supplement the disclosure of information within a time limit, reducing its interbank borrowing quota upon verification, shortening its longest interbank borrowing term, restricting its scope of interbank borrowing, suspending or stopping its networking with the National Interbank Funding Center, etc.

Chapter VI Supervision and Administration

Article 34 The PBC will conduct both non-spot supervision and spot inspection on the interbank borrowing according to law, and give guidance and supervision on the self-discipline organizations in the interbank borrowing market.

Article 35 The PBC branches at the provincial level shall take the responsibility of working out measures for implementing the interbank borrowing filing administration within its own jurisdiction, and supervising interbank borrowing trading through the borrowing filing system by the financial institutions within its jurisdiction.

Article 36 In light of the requirements to perform the supervisory duties on the interbank borrowing market, the PBC or its branches at the provincial level may take the following measures for the spot interbank borrowing inspection:

(1) Inspection inside the financial institutions;

(2) Inquiries of the staff of financing institutions about making explanations on the relevant inspection matters;

(3) Consulting and photocopying the documents and materials of financial institutions relating to the inspection matters, and sealing up those documents and materials that may be transferred, destroyed, hidden or modified; and

(4) Inspections on the management systems of business data of financial institutions by using computers.

Article 37 In case a PBC sub-branch of a prefecture or city level finds there is any abnormal interbank borrowing trading and regards it necessary to conduct a spot interbank borrowing inspection, it shall report it to the competent PBC branch at the provincial level and perform such an inspection upon approval.

Article 38 When implementing spot interbank borrowing inspections, the PBC and its branches and sub-branches at or above the prefecture or city level shall observe the relevant provisions of the PBC on supervision and inspection procedures.

Article 39 In light of the requirements to perform the supervisory duties on the interbank borrowing market, the PBC and its branches and sub-branches at or above the prefecture or city level may have conversations with directors and senior managers of financial institutions, and require them to make explanations on major matters relating to implementing the provisions on the administration of the interbank borrowing market.

Article 40 The PBC and its branches and sub-branches at or above the prefecture or city level shall perform spot interbank borrowing inspections on financial institutions and report the inspection circumstances to the relevant regulatory authority if necessary.

Chapter VII Legal Liabilities

Article 41 In the case of any of the following acts committed by a financial institution, the PBC and it branches and sub-branches at or above the prefecture or city level shall impose it relevant punishments:

(1) It conducts the interbank borrowing business without relevant qualifications;

(2) It performs the interbank borrowing with any institution without qualification for interbank borrowing business;

(3) It engages in the interbank borrowing business outside the national unified interbank borrowing network;

(4) It uses the borrowed capital for any purpose in violation of relevant laws or regulations;

(5) It performs the interbank borrowing business by excess of the longest borrowing term as prescribed by the PBC;

(6) It has the balance of interbank borrowing more than the quota as verified by the PBC;

(7) It fails to disclose information to the interbank borrowing market in accordance with the provisions as prescribed by the PBC; or

(8) Any other act in violation of the provisions on the interbank borrowing market.

Article 42 With respect to any commercial bank under any of the circumstances as prescribed in Article 41 of these Measures, the PBC and it branches and sub-branches at or above the prefecture or city level shall punish it in accordance with relevant provisions in Article 76 of the Law of the People's Republic of China on Commercial Banks.

Article 43 With respect to any policy bank, credit cooperative, corporate financial company, trust company or financial leasing company under any of the circumstances as prescribed in Article 41 of these Measures, the PBC and its branches and sub-branches at or above the prefecture or city level shall impose a punishment upon it in accordance with relevant provisions in Article 17 of the Measures for the Punishment of Illegal Financial Acts.

Article 44 With respect to any securities company, insurance company, insurance assets management company, financial assets management company or auto financial company under any of the circumstances as prescribed in Article 41 of these Measures, the PBC and its branches and sub-branches at or above the prefecture or city level shall punish it in accordance with relevant provisions in Article 46 of the Law of the People's Republic of China on the People's Bank of China.

Article 45 With respect to any director, senior manager or other person of a financial institution directly responsible for an act referred to in Article 41 of these Measures, he/she shall be punished as prescribed in Article 46 of the Law of the People's Republic of China on the People's Bank of China.

Article 46 In the case of any of the following acts committed by the National Interbank Funding Center, the PBC shall punish it in accordance with relevant provisions in Article 46 of the Law of the People's Republic of China on the People's Bank of China:

(1) It fails to publicize market information in a timely manner pursuant to legal provisions, or issues false information or non-public information;

(2) Any severe safety accident arises in its trading system or information system, which brings significant impact to the market;

(3) It causes serious losses to market participants or produces significant impacts to the market due to its failure to perform duties;

(4) It offers convenience to any financial institution for unlawful interbank borrowing trading;

(5) It fails to submit statistical data in light of legal provisions or fails to report the abnormal condition of the interbank borrowing market in a timely manner; or

(6) Any other act in violation of the provisions on the interbank borrowing market.

Any senior manager or other person directly responsible for any act referred to in the preceding Paragraph shall be punished in accordance with relevant provisions in Article 46 of the Law of the People's Republic of China on the People's Bank of China.

Article 47 Where any certified public accountant, attorney, credit rating institution and any other professional institution or person that provides professional services to the interbank borrowing market by revealing the information issues any document including any false recording, misleading statement or major omission, he/it shall not provide any professional service to the interbank borrowing market; and shall bear corresponding legal liabilities if he/it is in violation of any relevant legal provisions.

Article 48 The PBC and its branches and sub-branches at or above the prefecture or city level shall make an announcement to the relevant regulatory authorities after punishing a financial institution in violation of these Measures. If any financial institution is found in violation of these Measures, the PBC sub-branch of a county level shall report the violation to the branch at the next higher level, which shall impose relevant punishment on the said financial institution under these Measures.

Article 49 When imposing administrative sanctions on financial institutions in violation of these Measures, the PBC and its branches and sub-branches at or above the prefecture or city level shall follow the Provisions on the Procedures for Administrative Sanctions of the People's Bank of China.

Article 50 The PBC and its branches shall be subject to the supervision for their surveillance on interbank borrowing market according to law, and bear the relevant legal liabilities.

Chapter VIII Supplementary Rules

Article 51 PBC branches at the provincial level referred to in these Measures mean all the branches, business management departments, central sub-branches in provincial capitals and central sub-branches in deputy-provincial cities of the PBC.

Article 52 The engagement in foreign exchange interbank borrowing by financial institutions shall be formulated by the PBC respectively.

Article 53 These Measures are subject to the interpretation of the PBC, and shall be implemented upon arrangement of Shanghai Headquarters of the PBC.

Article 54 These Measures shall enter into force as of August 6, 2007. The Trial Measures for the Administration of Interbank Borrowing as promulgated by the PBC on March 8, 1990 shall be annulled on the same date. In case any other provision on interbank borrowing conflicts with these Measures, the latter shall prevail.

(Source: www.fdi.gov.cn)