(3) In the case of fit and proper test for directors and senior managers, within 30 days from the date of receiving the application documents.

Article 23 The banking regulatory authority shall conduct off-site surveillance of the business operations and risk profile of banking institutions. For this purpose, it shall establish a supervisory information system to analyze and assess the risk profile of banking institutions.

Article 24 The banking regulatory authority shall conduct on-site examination of the business operations and risk profile of banking institutions.

The banking regulatory authority under the State Council shall formulate on-site examination procedures to standardize on-site examination activities.

Article 25 The banking regulatory authority under the State Council shall regulate and supervise banking institutions on a consolidated basis.

Article 26 The banking regulatory authority under the State Council shall respond to the proposals of the People's Bank of China for the examination of banking institutions within 30 days from the date of receiving the proposals.

Article 27 The banking regulatory authority under the State Council shall establish a rating system and an early warning system for the purpose of supervision of banking institutions, thus, based on the rating and risk profile of banking institutions, determining the frequency and scope of on-site examination as well as other supervisory measures that may be deemed necessary.

Article 28 The banking regulatory authority under the State Council shall establish a system to identify and report emergency situations in the banking sector.

The banking regulatory authority shall, as soon as identified any emergency situations that may result in systemic banking risks, hence causing severe social instability, report to the chief responsible person of the banking regulatory authority under the State Council. The chief responsible person of the banking regulatory authority under the State Council shall, when deemed necessary, report to the State Council while informing relevant government agencies including the People's Bank of China and Ministry of Finance.

Article 29 The banking regulatory authority under the State Council shall, in collaboration with relevant government agencies including the People's Bank of China and Ministry of Finance, establish mechanisms to address emergency situations in the banking sector, including formulating contingency plans, designating institutions and staff members, specifying their responsibilities, and stipulating resolution measures and procedures, hence ensuring timely and effective resolution of the emergency situations in the banking sector.

Article 30 The banking regulatory authority under the State Council shall compile and publish statistics and reports of banking institutions in accordance with applicable regulations of the state.

Article 31 The banking regulatory authority under the State Council shall guide and oversee the activities of the self-regulation organizations of the banking industry.

The self-regulation organizations of the banking industry shall submit their articles of association to the banking regulatory authority under the State Council for filing.

Article 32 The banking regulatory authority under the State Council may engage in the international activities related to banking regulation and supervision.

Chapter IV Supervisory Methods

Article 33 The banking regulatory authority shall, for the purpose of performing its responsibilities, have the authority to require banking institutions to submit, in accordance with applicable regulations, balance sheets, income statements, other financial and statistical reports, information concerning business operations and management, and the audit reports prepared by certified public accountants.

Article 34 The banking regulatory authority may take the following measures to conduct on-site examination for the purpose of exercising prudential supervision:

(1) To enter a banking institution for on-site examination;

(2) To interview the staff of the banking institution and require them to provide explanations on examined matters;

(3) To have full access to and make copies of the banking institution's documents and materials related to the on-site examination, and to seal up documents and materials that are likely to be removed, concealed or destroyed; and

(4) To examine the banking institution's information technology infrastructure for business operations and management.

The on-site examination shall be subject to prior approval of the chief responsible person of the banking regulatory authority. The on-site examination team shall comprise no less than two examiners, who shall produce their legal certificates and the examination notice upon examination. If the on-site examination team comprises less than two examiners, or the examiners fail to produce their legal certificates or the examination notice upon examination, the banking institutions shall have the right to refuse the examination.

Article 35 The banking regulatory authority may, for the purpose of performing its responsibilities, hold supervisory consultations with the directors and senior managers of a banking institution to inquire about the major activities concerning its business operations and risk management.

Article 36 The banking regulatory authority shall require banking institutions to disclose, in accordance with applicable regulations, to the public reliable information, including, among others, financial reports and statements, risk management situations, changes in the directors and senior managers and information on other significant matters.

Article 37 When a banking institution fails to meet prudential rules and regulations, the banking regulatory authority under the State Council or its provincial offices shall require it to take remedial measures within a prescribed period of time. If the banking institution fails to correct the deficiencies within the prescribed period of time, or the safety and soundness of the banking institution is likely to be severely threatened and the interests of its depositors and other customers are likely to be jeopardized, the banking regulatory authority under the State Council or its provincial offices may, subject to the approval of their chief responsible officers, take the following measures depending on the severity of the circumstances:

(1) To suspend part of the businesses of the banking institution and/or withhold approval of new products or services;

(2) To restrict dividend or other payments to shareholders;

(3) To restrict asset transfers;

(4) To order the controlling shareholders to transfer shares or restrict the powers of relevant shareholders;

(5) To order the banking institution to replace the directors and/or senior managers or restrict their powers; and

(6) To withhold approval of establishing new branches.

The banking institution shall report to the banking regulatory authority under the State Council or its provincial offices once it is restored to meet the prudential rules and regulations after taking corrective measures. The banking regulatory authority under the State Council or its provincial offices shall terminate the measures prescribed in the preceding paragraph within three days after the verification of compliance.

Article 38 When a banking institution is experiencing or likely to experience a credit crisis, thereby seriously jeopardizing the interests of depositors and other customers, the banking regulatory authority under the State Council may take over the banking institution or facilitate a