(8) For applicants establishing a solely funded or equity joint bank within China for the first time, they shall submit the information about the financial system and relevant financial supervision laws and regulations of the country or region where the applicant of a solely funded or equity joint bank is located;

(9) The articles of association of the applicant;

(10) A diagram of the organizational structure of the applicant and the group to which it belongs, name list of the main shareholders, name list of the overseas branches and associate companies;

(11) The bylaws or rules of the applicant on anti-money laundering; and

(12) Other materials as required by the CBRC.

Upon approval of this Preparatory Application, Article 15 articulates that one must submit an "Application for Establishment" within 15 days. The application for establishment must contain the following items, sent in triplicate, to the regional CBRC offices:

(1) An application signed by the head of the preparatory establishment team of the institution to be established and addressed to chairman of the CBRC;

(2) An application form as required by the CBRC;

(3) The names, resumes and photocopies of identity certification and educational background certification of the candidate chairman of the board of directors and the president (chief executive officer or general manager) signed by the person authorized by the applicant;

(4) Declarations of criminal records, or lack thereof, signed by the candidates;

(5) A capital verification certification issued by a statutory capital verification institution;

(6) The security measures and materials of other facilities relating to the business; and

(7) Other materials as required by the CBRC.

The CBRC will have 30 days to make the final decision to approve or deny the application. Upon approval, the foreign-funded bank must begin business activities within six months, or risk having to endure the application process all over again.

Establishing a branch

At this point, it should come as no surprise that the final step in this process hinges on another lengthy application process. Fortunately, this application is nearly identical to the business license application process (see Issue No. 37), including having the same filing requirements and review periods. As such, many of the steps needed for establishing a branch will have already been completed.

In order to submit the Preparatory Application for Establishment, the applicant will have to meet the provisions and prudent requirements (Articles 8 and 9) of the CBRC's measures. In addition to these requirements the applicant must show a minimum operating fund of 100 million yuan ($14.7 million) for the opening branch.

Upon approval of the Preparatory Application, the Application for Establishment must be submitted, using the same seven items enumerated in Article 15 of the measures.