China ups market access for foreign banks

first_imgChina 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.last_img