China ups market access for foreign banks
21 Dec 2014 1:03 AM GMT
China has eased the rules which will provide market access for foreign banks, in a move to further open up the domestic banking sector. The Chinese Cabinet published the amended rules on Saturday, which will no longer require a specific amount of operating funds to be transferred from the parent foreign bank to its newly established Chinese branch.
Previously, a foreign bank would have to unconditionally allocate at least 100 million yuan ($16.4 million) or the same value in other freely-convertible currencies. The requirement has had a restrictive impact on capital replenishing at foreign banks’ China branches.
Meanwhile, direct capital injection from parent firms to their branches too would be treated as FDI, which often involved a complicated approval process from multiple government agencies, state-run Xinhua news agency reported.
Previously, a foreign bank would have to unconditionally allocate at least 100 million yuan ($16.4 million) or the same value in other freely-convertible currencies. The requirement has had a restrictive impact on capital replenishing at foreign banks’ China branches.
Meanwhile, direct capital injection from parent firms to their branches too would be treated as FDI, which often involved a complicated approval process from multiple government agencies, state-run Xinhua news agency reported.
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