| Tuesday, November 13, 2001, updated at 15:45(GMT+8) |
PBOC Announced Timetable for Banking Opening |
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According to related WTO accords, the spokesman said, China will revoke restrictions on foreign-funded banks step by step. PBOC announced timetable for opening RMB business to foreign-funded banks after China enters the WTO. (Click to see the timetable)
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In view of the approval of China's WTO membership by the fourth WTO Ministerial Conference in Doha, spokesman for the People's Bank of China (PBOC) Sunday said in Beijing that both opportunities and challenges exist in China's entry into the WTO for China's banking. China will strictly honor the commitments to open its banking to foreign counterparts, promote and deepen financial reform, make hard efforts to fulfill tasks in various aspects, maximize favorable factors and minimize unfavorable ones and continuously improve the competitiveness of domestic banks in the international market to ensure a steady healthy development of China's banking under the process of reform and opening up.
According to related WTO accords, the spokesman said, China will revoke restrictions on foreign-funded banks step by step.
Following its formal entry into the WTO, China will cancel its restrictions on regions and clients for foreign-funded banks in handling foreign exchange business in China. On this occasion, foreign-funded banks can open foreign exchanges business to Chinese-funded enterprises and Chinese citizens. China will gradually abolish regional restrictions on foreign-funded banks in handling RMB business:
China will open banking business in Shenzhen, Shanghai, Dalian and Tianjin at the time of its entry into the WTO; it will open banking business in Guangzhou, Qingdao, Nanjing and Wuhan in one year following the entry; in two years, it will open Jinan, Fuzhou, Chengdu and Chongqing; in three years, Kunming, Zhuhai, Beijing and Xiamen; in four years, Shantou, Ningbo, Shenyang and Xi'an; in five years, all the regions across China.
Besides, China will call off restrictions on target clients for RMB business step by step. In two years after it joins the WTO, China will permit foreign-funded banks to handle RMB business for Chinese enterprises; in five years, it will permit foreign-funded banks to provide such services to all Chinese clients. China will permit foreign-funded banks to set up business network in the same city. The conditions for approval are the same with those for Chinese-funded banks.
In five years, China will write off all current non-cautious restrictions on ownership and style of operation and establishment of foreign-funded banks, including the limits on branches and issuance of licenses. By then, China will allow non-banking financial institutions to enter China to provide credit loans for car purchasing. These financial institutions will enjoy the same treatments with Chinese-funded financial institutions; foreign-funded banks will be permitted to provide loans for car purchasing to Chinese individuals after they join the Chinese market for five years. Foreign-funded financial renting companies will be permitted to provide financial leasing services simultaneously with Chinese companies.
The spokesman pointed out that the opening of banking market will be favorable to improve the structure of banking capital, enhance the inflow of international financial funds and absorb management and operation of modern and large banks, so as to regulate China's credit and capital transaction, improve its banking services and eliminate the disparity between China and the international standards.
Timetable for opening RMB business to foreign-funded banks after China enters the WTO:
Time | Regions | Clients | entry | Shenzhen,
Shanghai, Dalian, Tianjin | / | in
one year | Guangzhou,
Qingdao, Nanjing, Wuhan | / | in
two years | Jinan,
Fuzhou, Chengdu, Chongqing | Chinese
enterprises | in
three years | Kunming,
Zhuhai, Beijing, Xiamen | / | in
four years | Shantou,
Ningbo, Shenyang, Xi'an | / | in
five years | all
the regions | all
the Chinese clients |
By PD Online staff member Du Minghua
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