Foreign Banks Get RMB Go-ahead in More Chinese Cities

Home>>Business

Last updated at: (Beijing Time) Thursday, November 21, 2002

Foreign Banks Get RMB Go-ahead in More Chinese Cities

DISCUSSION

CHINESE

SEND TO FRIEND

The People's Bank of China (PBOC) announced Tuesday that foreign-funded financial institutions would be allowed to conduct RMB business in five cities---- Guangzhou, Zhuhai, Qinagdao, Nanjing and Wuhan from this December 1st.

According to the announcement released by the central bank, foreign-funded financial institutions in these cities may apply to the Chinese central bank for the management of RMB business in accordance with related regulations defined in Administrative Provisions of the People's Republic of China on Foreign-Invested Financial Institutions and Rules for the Implementation of Administrative Provisions of the People's Republic of China on Foreign-Invested Financial Institutions. Such a decision was made in line with China's relative WTO commitments.

A spokesman with the central bank said this move has followed China's promises related to its accession to the World Trade Organization. When China officially joined the WTO on December 11, 2001, it removed restrictions on the foreign exchange clients of foreign banks and allowed them to conduct RMB business in Shanghai, Shenzhen, Tianjin and Dalian. Next few years, China will gradually honor its related promises concerning opening up to the outside world.

The spokesman also pointed out that the efforts that China honored related WTO commitments on schedule and opened up relative bank businesses step by step would help to improve the capital structure of Chinese banks, increase the inflow of international capital, and invite modern bank managerial and corporate philosophy, thereby standardizing the market behavior of China's credit and capital trade, enhancing the service level of China's banking industry and spurring it into the international market.

Statistics conducted by the central bank show that foreign banks have set up 181 business agencies in China by the end of last September, with 45 agencies already granted with RMB Business Licenses. The total RMB assets of foreign banks stands at 47.797 bn yuan, among which 38.5 bn is loan balance.

By PD Online Staff Zhu Lizhen

Questions?Comments? Click here

PBOC Announced Timetable for Banking Opening

West China to Allow Foreign Banks to Manage RMB Business

Jiang Zemin Wins Respect for Absence in New Party Central Committee ( 2 Messages)

'Three Represents' to Become Party's Mission Statement ( 7 Messages)

Lured by Black Gold-Oil-- under Anti-Terrorism Banner ( 116 Messages)

China Objects US Blockade of Cuba ( 3 Messages)

China's Foreign Trade Totals 500 Billion US Dollars ( 4 Messages)