China’s State Council is all set to relax control over market access for overseas banks, a bid to widen the opening-up of its financial sector.
New rules have been announced by the cabinet that will further ease access for overseas banks.
Under the rules, the parent bank will no longer have to transfer a specific amount of operating funds to its newly-established branch in the country.
The new rules are set to take effect from 1 January 2015.
Earlier, overseas banks or Sino-foreign joint venture banks had to initially set up a representative office in China two years before setting up branches in the country, reports USA.Chinadaily.com.
If they are applying for such business, the banks will also face no profitability requirement. Earlier, they had to show profitability for two successive years, reports CRIEnglish.com.
As per the new requirements, overseas bank, which has one branch carrying out RMB business, will no longer face restrictions in launching the same business at its other branches in the country.