6.3 Prohibited provisions on banking business

6.3.1 Prohibition on commercial banks from granting credit loans to related parties

Commercial banks are not allowed to grant credit loans to related parties; The conditions for granting guaranteed loans to related parties shall not be better than those for similar loans from other borrowers. The related parties mentioned in the preceding paragraph refer to: (1) Directors, supervisors, managers, credit business personnel of commercial banks and their close relatives; (2) Companies, enterprises and other companies in which the persons listed in the preceding paragraph invest or hold senior management positions economic organization.

The purpose of prohibiting the provision of credit loans to related parties is to improve the quality of credit assets of banks, reduce risks, create a fair and open lending environment, and prevent insider trading.

6.3.2 Prohibition of unfair means in the deposit and loan business of commercial banks

The specific manifestations of unfair competition behavior of my country’s commercial banks: first, unfair competition in interest rates; second, It is unfair competition in financial services.

6.3.3 Prohibition of inter-bank lending business

Inter-bank lending shall comply with the regulations of the People's Bank of China. It is prohibited to use borrowed funds to issue fixed asset loans or for investment.