On September 11, 2014, the offices of the China Banking Regulatory Commission, the Ministry of Finance and the People's Bank of China jointly issued the Circular on Issues Relating to Strengthening the Administration of the Deposit Deviation Ratio of Commercial Banks (hereinafter, the "Circular").

The Circular stipulates that a commercial bank shall not set up time-point deposit scale evaluation indicators, or evaluation indicators simply based on the share or ranking in the deposit market, and that its branches shall not formulate their own deposit evaluation rules or raise the evaluation standards and relevant requirements.

The Circular also stipulates that a commercial bank shall neither increase the deposit rate or the high interest rate level nor set up other dedicated accounts to pay high interest to depositors; shall not forcefully absorb deposit through improper means such as cash return, securities or physical gifts; shall not accept deposits from funding intermediaries such as individuals or institutions; shall not provide fake loans to "dummy accounts"; shall not inflate deposits by issuing bank acceptance bills or bank discounts guaranteed on a revolving basis by loan funds as security; and shall not mobilize the funds deposited by finance companies temporarily as general deposit.

In addition, the Circular also requires all levels of regulators to set up a monitoring system and to take regulatory corrective and penal measures such as access restriction, reduced ratings, business restriction and increased stability deposit ratio against banks with issues such as illegal absorption of deposit or inflated deposit.