Financial Management Regulations of National Policy Banks

Chapter 1 General Provisions Article 1 In order to strengthen the financial management of policy banks and regulate the financial behavior of policy banks, these regulations are formulated in accordance with the "Financial System for Financial and Insurance Enterprises" and relevant national regulations. Article 2 Policy banks shall conscientiously implement the national economic and industrial policies, support the development of related industries, adhere to independent and capital-guaranteed operations, implement enterprise management, pay attention to economic accounting, improve economic efficiency, and implement "planned management, hierarchical accounting, A financial management system that is responsible for profits and losses, interest differential subsidies, and capital-guaranteed operations. Policy banks should follow the accrual accounting principle. Article 3: The financial management of policy banks shall be subject to the president’s responsibility system. Bank presidents at all levels should attach great importance to the financial work of their banks, establish and improve internal accounting systems and institutions, and enrich financial members. The financial revenue and expenditure and expense management of policy banks should be relatively centralized, and a collective discussion and "one-pen approval" system should be implemented. Article 4 Policy banks should effectively strengthen basic management work, establish and improve various internal control systems, strengthen economic accounting, conscientiously do a good job in the planning, control, assessment and analysis of financial revenue and expenditure, improve economic efficiency, accept the decisions of the Ministry of Finance and the Ministry of Finance Management and supervision of the local Financial Supervisory Commissioner’s Office (hereinafter referred to as the Financial Supervisory Commissioner’s Office). Article 5 These Measures apply to China Development Bank, Agricultural Development Bank of China, and Export-Import Bank of China. Chapter 2 Capital and Fund Raising Article 6 The total registered capital of policy banks shall be determined or adjusted by the State Council, and shall be fully held by the state finance. Article 7 The capital of policy banks shall be settled through the following channels:

1. The central government shall allocate the capital on an annual basis; 2. According to national regulations, the actual capital shall be allocated within a certain period of time. Part of the tax paid will be returned and used to supplement capital;

3. With the approval of the Ministry of Finance, the surplus reserves or capital reserves set aside in previous years will be transferred to increase;

4. Others Capital increased with the approval of the State Council or the Ministry of Finance.

The State Council stipulates that the foreign exchange capital of policy banks shall be allocated, and the central government shall allocate corresponding RMB funds. Policy banks shall handle foreign exchange purchase procedures with the foreign exchange management department in accordance with regulations. Article 8 When a policy bank establishes a branch within the territory of the People's Republic of China, it shall allocate working capital commensurate with its business scale in accordance with regulations. The total amount of working capital allocated to each branch shall not exceed 60% of the total capital of the head office. Article 9 Policy banks shall raise funds within the scope prescribed by the State Council. Chapter 3 Utilization of Funds Article 10 Policy banks must use funds and carry out business within the scope prescribed by the State Council. Policy banks should establish and improve internal control systems for loan issuance, project management and supervision, carefully review loan project conditions and financial assessments, strengthen the tracking, supervision and management of various loans, and conduct pre-loan investigations and mid-loan inspections and post-loan inspections, implement mortgage guarantee measures to ensure the safety of policy credit funds, collect loan principal and interest on schedule, strive to improve asset quality, and reduce the proportion of non-performing assets. For policy credit funds that have been misappropriated, the penalty interest policy must be strictly implemented in accordance with relevant regulations, and efforts must be made to collect them. Article 11 Policy banks that have been approved by the state to engage in guarantee business may independently decide to carry out guarantee business, but guarantees with a single liability amount exceeding US$2.5 million or RMB 20 million must be reported to the Ministry of Finance for approval. Article 12 The purchase and construction of fixed assets by policy banks shall be strictly controlled. The net value of fixed assets at the end of the period (including projects under construction and intangible assets formed by the purchase of land use rights, the same below) shall not account for more than 30% of the capital. Chapter 4 Declaration and Approval of Financial Plans Article 13 The Ministry of Finance implements planned management of the finances of policy banks. Policy banks shall carefully prepare annual financial reports in accordance with the relevant regulations of the Ministry of Finance and the "Notice on Strengthening the Supervision of Policy Banks" by the Ministry of Finance and the People's Bank of China ([94] Cai Shang Zi No. 622, hereinafter referred to as the "Supervision Notice") Plan and perform declaration and approval procedures. The annual financial plan of policy banks must be submitted to the Ministry of Finance before January 31, and the Ministry of Finance will give its approval before the end of March.

The Ministry of Finance mainly approves business management expense rates (or expense amounts), realized profits (or losses), interest spread subsidies, fixed asset acquisition and construction funds, bad debt reserve withdrawals and bad debt write-off plans, etc. 6 indicators. Article 14: The Ministry of Finance implements absolute amount or expense rate control measures on the business management fees of policy banks.

If the absolute amount control method is implemented, the Ministry of Finance shall determine the total amount of business management fees of policy banks; if the business management expense rate control method is implemented, the Ministry of Finance shall determine the proportion of business management fees in operating income based on the financial plan reported by the policy bank. ratio. The calculation formula of business management expense rate is as follows: business management expense rate = business management fee/operating income × 100%

Business management fee is calculated in accordance with the relevant provisions of the "Financial System for Financial and Insurance Enterprises"; operating income includes interest income , interest income from transactions with the People's Bank of China, fee income, exchange income, and other operating income, but does not include interest income from interbank transactions and interest income from transactions within the system.

Within the bank-wide business management expense amount or business management expense rate indicators approved by the Ministry of Finance, policy banks shall separately determine the business management expenses or business management expense rates of branches, head offices, and directly affiliated institutions. Plan, no overallocation is allowed.