Is Article 19 of the Measures for Banking Supervision and Management a valid clause?

Without the approval of the State Council Banking Regulatory Authority, no unit or individual may establish or engage in the business activities of banking financial institutions.

[Interpretation] This article is about illegally establishing banking financial institutions and illegally engaging in banking financial activities.

Banking is an industry specializing in monetary financing, and its stability and development are closely related to the interests of the general public. Therefore, all countries implement strict market access system for the banking industry, and China is no exception. Article 16 of this law clearly stipulates that the establishment of banking financial institutions must be examined and approved by the banking regulatory agency of the State Council, namely the China Banking Regulatory Commission. A few years ago, some localities, departments, enterprises, institutions and individuals raised funds and approved banking financial institutions in disorder, and the problem of disorderly operation of banking financial institutions was quite serious. Illegal banking financial institutions and illegal banking financial activities often absorb huge amounts of funds, involve a wide range of means, are deceptive, and are often associated with criminal activities such as corruption, bribery, fraud, embezzlement of public and private property, and there are huge financial risks and crises lurking. After the country lowered the deposit and loan interest rates many times, illegal fund-raising activities showed an upward trend, which became a serious hidden danger endangering social stability. Due to the above problems, some vicious incidents have occurred in some places, such as bank runs, mass petitions, and even attacks on government agencies. It has seriously disrupted the financial order of the banking industry, harmed the interests of the masses and undermined social stability.