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Overseas banks to move into RMB business
By Zhang Dingmin (China Daily)
Updated: 2005-12-06 05:49

Banking sector to open wider

China will continue to encourage overseas banks to expand business in China as part of efforts to open up the Chinese market.

Liu said foreign banks may enjoy more relaxed markets entry criteria when applying for conducting renminbi (RMB)businesses in China's central, western and northeastern regions.

Addressing a press conference held by the Information Office ofthe State Council, he said China gave the green light for foreign financial institutions to do RMB-denominated business in seven more cities, bringing the number of cities to 25 which open RMB business to overseas banks.

The cities include Shantou, Ningbo, Harbin, Changchun, Lanzhou,Yinchuan and Nanning.

He said the CBRC once again substantially lowered the minimum operating capital requirements for foreign banks in China to conduct renminbi business, and will make adjustments on proportion of the total amount of foreign exchange deposits taken within Chinese territory by foreign-funded financial institutions.

He said the aforementioned measures will foster a more favorable policy environment for foreign banks to develop their business in China.


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