• Setting up a commercial bank requires minimum paid-in capital and approval from the banking regulator.
• Core principle: protecting depositors' funds comes first; banks operate on safety, liquidity and profitability.
• A bank may refuse any party — even a government body — that demands a loan in breach of law.
• Related-party loans (to directors/major shareholders) are tightly restricted to prevent conflicts of interest.
• Banks must keep individual accounts confidential except under lawful order.
• Banks are subject to capital-adequacy and reserve requirements and on-site supervision by the regulator.
Commercial Bank Law · Yalla China
中华人民共和国商业银行法 / Law on Commercial Banks
Enacted: 1995-05-10 ✅ Effective: 1995-07-01
📝 Overview
Governs how commercial banks in China are set up and run — deposits, loans, guarantees, depositor protection and supervision. Protects customers and safeguards banking-system soundness.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
If a bank refuses a loan or freezes an account, ask for the legal basis in writing; you have a right to confidentiality and to complain to the banking regulator.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026