银发[1998]458号
(Issued by the People's Bank of China and the State Administration of Foreign Exchange on 26 September 1998 and effective as of 1 October 1998.)
颁布日期：19980926 　实施日期：19981001 　颁布单位：中国人民银行、 国家外汇管理局

Recently, increasing numbers of organizations (including wholly Chinese-owned organizations and foreign investment enterprises) in the People's Republic of China ("PRC") are using foreign exchange pledges, and foreign exchange security provided by wholly foreign-owned banks, to obtain Renminbi ("Rmb") loans from wholly Chinese-owned banks in the PRC. Confusion exists as to the purposes for which such loans are used. In order to strengthen risk management and to standardize the business practices of wholly Chinese-owned banks, the following relevant regulations are hereby promulgated:

1. Foreign currency deposit accounts of organizations in the PRC shall be subject to account management. Financial institutions shall no longer issue deposit certificates to depositors and shall instead issue Confirmation of the Opening of a Foreign Currency Fixed Deposit Account of an Organization Inside the People's Republic of China Certificates, the format of which shall be determined by reference to the Confirmation of the Opening of a Fixed Deposit Account of an Organization Inside the People's Republic of China Certificate used for Rmb accounts.

2. When providing Rmb loans to wholly Chinese-owned organizations in the PRC, wholly Chinese-owned designated foreign exchange banks in the PRC may not accept any kind of foreign exchange security (including stand by letters of credit) provided by wholly foreign-owned banks or by organizations outside the PRC and may not accept Confirmation of the Opening of a Fixed Deposit Account of an Organization Inside the People's Republic of China Certificates or foreign exchan ge promissory notes, bills of exchange, checks, bonds, stocks etc. as the instrument pledged to obtain the Rmb loan.

3. [According to Article 9 of Improving the Administration of Renminbi Loans Secured by Foreign Exchange Circular issued by the People's Bank of China on 6 July 1999, this article is repealed.]

4. This Circular shall not be applicable to normal foreign exchange settlement, normal negotiation of bills of exchange issued under letters of credit for imports and exports and normal trade financing business such as the granting of packing credit, etc. carried out by wholly Chinese-owned designated foreign exchange banks in the PRC which have been granted approval to engage in foreign exchange business. However, such banks shall handle such business strictly in accordance with relevant regulations and shall establish as soon as possible a unified system for granting credit to enterprises so as to control the risk.

5. This Circular shall be implemented as of 1 October 1998. In the event of any conflict between any previous documents and this Circular, the latter shall prevail. All branches of the State Administration of Foreign Exchange are requested to promptly forward this Circular upon receipt to all wholly foreign-owned banks within their jurisdiction for implementation by such banks.