The General Office of the China Banking and Insurance Regulatory Commission ("CBIRC") has recently issued the Circular on Matters concerning Improvements in Relocating the Business Premises of Branches of Financial Institutions in the Banking Sector (the "Circular").
The Circular reads that the branch of a financial institution in the banking sector may relocate its business premises to any place within the administrative region of the municipality directly under the Central Government, the city specifically listed in the state plan, the provincial capital or the prefecture-level city (prefecture or league) in its place, however, relocation from the town into the urban area or county or from the county into the urban area is not allowed. The Circular further stipulates that in principle, a branch that is established in a free trade zone under special policies may only move its business premises to any other place under the jurisdiction of the banking and insurance regulatory bureau or sub-bureau governing this free trade zone. Furthermore, the Circular clarifies that the branch of a financial institution in the banking sector shall, 30 working days before the relocation of its business premises, make public, in effective ways, information on such relocation and the specific methods for ensuring its business continuity, to ensure the rights and interests of financial consumers and the availability of public financial services will not be affected.