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Foreign Banks Granted More Freedom in Currency Business

Foreign Banks Granted More Freedom in Currency Business

China granted foreign banks more freedom to conduct crucial local-currency business activities on December 5, well ahead of the market-opening schedule required by its World Trade Organization (WTO) commitments, Xinhua News Agency reported.

Since December 5, foreign banks such as HSBC have been allowed to offer renminbi business services to Chinese and foreign businesses and to foreign individuals in seven more cities.

Shantou and Ningbo were opened up in accordance with the nation's WTO commitments, and so were Harbin, Changchun, Lanzhou, Yinchuan and Nanning, which were not scheduled, bringing the total number of cities to 25.

The China Banking Regulatory Commission (CBRC) reduced the highest tier of operating-capital requirements for foreign bank branches that offer renminbi business to 400 million yuan (US$49 million) from 500 million yuan (US$61 million).

The operating-capital requirement for branches of foreign-owned and Sino-foreign banks that offer renminbi services was lowered to 200 million yuan (US$24 million) from 300 million yuan (US$37 million).