Each foreign bank can absorb no less than 6.5438+0 million domestic citizen deposits.

Date: 2006-11-17 Source: Yantai Daily

According to Xinhua News Agency Beijing 165438+ 10/6, the Regulations on the Administration of Foreign Banks, which will be implemented on February 1 1, stipulates that branches of foreign banks in China can engage in RMB wholesale business and attract citizens in China at least RMB 1.

According to the introduction of the State Council Legislative Affairs Office and China Banking Regulatory Commission on June 16, there are 73 revised laws and regulations, the main contents of which are related to fulfilling commitments, strengthening prudential supervision, embodying the unified supervision standards of Chinese and foreign banks, and embodying the national regional economic development strategy.

The above provisions delete the regulation that the regulatory authorities approved "the geographical scope of RMB business and the scope of service objects of foreign-funded financial institutions"; It is stipulated that a foreign-funded corporate bank can operate corporate RMB business and citizen RMB business in China after it has been in business for more than 3 years in People's Republic of China (PRC) and has been making profits for 2 years continuously before applying, and other prudent conditions.

The newly revised regulations add provisions on information disclosure and corporate governance; The provision that "foreign exchange deposits absorbed by foreign-funded financial institutions from China shall not exceed 70% of their domestic foreign exchange total assets" has been deleted, and the balance of domestic foreign currency assets of foreign bank branches shall not be lower than the balance of domestic foreign currency liabilities, so as to have enough assets to pay off debts and protect the interests of domestic depositors in case of crisis.

According to the new regulations, the registered capital and working capital of foreign-funded corporate banks and their branches are the same as those of Chinese banks. Foreign banks determine deposit and loan interest rates and various fees, deposit reserve, bad debt reserve, asset-liability ratio management, etc. , in accordance with the laws and regulations uniformly applicable to Chinese and foreign banks. At the same time, considering historical reasons, if it is difficult to meet the statutory requirements in a short time after the transformation, a certain grace period will be given.

65438+February 1 1 RMB business is open to the outside world, and foreign banks can absorb deposits.

China Net | Time: 2006-1-16 | Article Source: Beijing News.

65438+February 1 1 RMB business is fully open to foreign banks; Each foreign-funded branch can only absorb RMB deposits of more than 6,543,800 yuan; Encourage foreign banks to "register locally"

Xinhua News Agency is authorized to issue Regulations on the Administration of Foreign Banks in People's Republic of China (PRC). According to the regulations, China will fully fulfill its basic commitments after China's entry into WTO and fully open its RMB retail business to foreign banks. A basic orientation is to encourage foreign banks to register locally. After registration, they will be fully qualified for RMB retail business, and will also engage in bank card business and consulting services.

The Regulations shall come into force on June 65438+February 1 1 2006. 200165438+On February 20th, the State Council promulgated the Regulations on the Administration of Foreign-funded Financial Institutions in People's Republic of China (PRC), which shall be abolished at the same time.

There is no restriction on absorbing public deposits after local registration.

The Regulations on the Administration of Foreign-funded Banks in People's Republic of China (PRC) promulgated this time, the local registered foreign-funded banks as legal persons have become the direction of policy encouragement. According to Article 29 and Article 3 1 of the Regulations, compared with branches of foreign banks, the business scope of locally registered foreign banks (including wholly foreign-owned banks and Sino-foreign joint venture banks) has two more businesses: "bank card business" and "credit information and consulting services".

In the most critical RMB retail business, although both local corporate banks and branches of foreign banks have the function of absorbing public deposits, there are no restrictions on corporate banks, while branches of foreign banks can only absorb RMB deposits of more than 6,543,800 yuan.

Yesterday, Wang Zhaoxing, Assistant Chairman of China Banking Regulatory Commission, explained that according to China's original commitment to join the WTO, RMB business will be opened to China enterprises and China residents within five years. At present, this provision is consistent with our commitment to the opening of the RMB. In addition, this is fully in line with the principle of prudence allowed by the WTO. In terms of risk supervision, branches of foreign banks are not as good as local registered corporate banks. Once risks occur, it is difficult to effectively protect the risks of domestic depositors.

The green light has been given for foreign banks to be allowed to register locally.

As China's banking industry is on the eve of full opening to the outside world, many provisions of the new regulations have broadened the space for foreign banks to develop their business in China and enjoyed more convenience and equal "national treatment".

According to the new regulations, foreign-funded corporate banks have obtained almost the same business scope as all Chinese banks, and their business scope has been greatly broadened. Even the branches of foreign banks can absorb RMB deposits of more than 1 10,000 yuan, so as to ensure their sources of RMB funds. In addition, according to the provisions of Article 8 of the new regulations, the threshold of working capital of foreign banks has been adjusted from the initial six files to a maximum of 500 million yuan, and the amount has been greatly reduced.

For those who need to be transformed from a branch of a foreign-funded bank to a corporate bank, this provision has given full convenience, not only allowing the establishment of a special working capital branch, but also giving a green light to the examination and approval. The relevant person in charge of the China Banking Regulatory Commission said, "Our approval is a passport, and the capital required for their approval and local registration will be green all the way."

According to the reporter's understanding, at present, major foreign banks in China, such as HSBC, Citigroup and Standard Chartered, have made it clear that they will complete "local registration" in China.

■ Summary of regulations

Determination of business scope of foreign banks in China

Article 29

Wholly foreign-funded banks and Sino-foreign joint venture banks may engage in some or all of the following foreign exchange business and RMB business in accordance with the business scope approved by the the State Council Banking Regulatory Authority:

(1) Absorbing public deposits;

(2) Short-term, medium-term and long-term loans;

(3) Handling bill acceptance and discount;

(4) buying and selling government bonds and financial bonds, and buying and selling securities in foreign currencies other than stocks;

(5) Providing letter of credit services and guarantees;

(6) Handling domestic and international settlement;

(7) buying and selling foreign exchange as an agent;

(8) agency insurance;

(9) engaging in interbank borrowing.

(ten) engaged in bank card business;

(eleven) to provide safe deposit box services;

(twelve) to provide credit investigation and consulting services;

(13) Other businesses approved by the State Council Banking Regulatory Authority. Wholly foreign-funded banks and Sino-foreign joint venture banks may engage in foreign exchange settlement and sale with the approval of the People's Bank of China.

Article 31

According to the business scope approved by the State Council Banking Regulatory Authority, branches of foreign banks may engage in some or all of the following foreign exchange business and RMB business for customers other than domestic citizens:

(1) Absorbing public deposits;

(2) Short-term, medium-term and long-term loans;

(3) Handling bill acceptance and discount;

(4) buying and selling government bonds and financial bonds, and buying and selling securities in foreign currencies other than stocks;

(5) Providing letter of credit services and guarantees;

(6) Handling domestic and international settlement;

(7) buying and selling foreign exchange as an agent;

(8) agency insurance;

(9) engaging in interbank borrowing.

(10) Providing safe deposit box services;

(eleven) to provide credit investigation and consulting services;

(12) Other businesses approved by the State Council Banking Regulatory Authority.

Branches of foreign banks can absorb China citizens' time deposits of not less than 1 10,000 yuan each.

With the approval of the People's Bank of China, branches of foreign banks can engage in foreign exchange settlement and sale business.

Article 44

30% of the working capital of a branch of a foreign bank shall be in the form of interest-bearing assets designated by the the State Council Banking Regulatory Authority.

Article 48

A foreign bank that has established two or more branches in People's Republic of China (PRC) shall authorize 1 branch to conduct unified management of other branches.

The banking supervision institution of the State Council shall exercise consolidated supervision over the branches established by foreign banks in People's Republic of China (PRC).

Article 57

Representative offices of foreign banks and their staff shall not engage in any form of business activities.

■ explanation

Wang Zhaoxing, Assistant Chairman of China Banking Regulatory Commission, interprets the local registration orientation of foreign banks.

Local registration of foreign banks is conducive to financial stability.

(Reporter Zhang Cheng) "We should honor our various commitments in time, and we should also honor our commitments in time. At the same time, we also hope to promote the reform of China's banking industry through opening up, improve the competitiveness of China's banking industry, and maintain China's financial security. " Yesterday, Wang Zhaoxing, Assistant Chairman of the China Banking Regulatory Commission, said that the core content of the new regulations is to fulfill China's WTO commitments and adhere to the basic national policy of opening to the outside world.

Regarding the issue of "local registration" of foreign banks as corporate banks, Wang Zhaoxing explained that this provision is not only in line with the basic spirit of WTO commitments, but also in line with the prudent principles and international practices allowed by the WTO.

He said that according to its business development strategy, foreign banks can continue to operate wholesale business in the form of branches if they want to focus on the wholesale business of RMB business and reduce the cost of setting up branches. "If you are willing to engage in RMB retail business according to your development strategy and your resource advantages and network advantages, you can choose the form of registered corporate bank, which is completely independent." Secondly, this is in full compliance with the principle of prudence allowed by the WTO. WTO rules allow governments and regulatory authorities to implement prudent regulatory systems and measures to safeguard their financial stability, especially the safety of depositors. Comparatively speaking, branches of foreign banks operate in China, and their parent banks are transnational. The risks of the parent bank, the global risks, the global risks and the risks of the parent bank are all difficult to be controlled by the local regulatory authorities.

Wang Zhaoxing said that based on the above prudent considerations, "we encourage foreign banks to register locally, which not only protects the rights and interests of depositors, but also maintains the overall financial stability."

"Domestic and foreign banks have a level playing field"

Experts said that the promulgation of the regulations is conducive to promoting macro-control measures in China.

(Reporter Su) The formal implementation of the Regulations will create a level playing field for domestic and foreign banks. Ma Qing, an analyst at CITIC Securities, commented on the Regulations on the Administration of Foreign Banks in People's Republic of China (PRC) issued last night.

Ma Qing said that before, foreign banks were not registered locally in China, but only conducted business in China in the form of branches, and their regulatory responsibilities were supervised by the head office of foreign banks and the regulatory authorities of their home countries. In the future, foreign banks registered as subsidiaries in China will be supervised by the banking supervision department of China. Therefore, domestic banks and foreign banks have the same competitive environment.

This regulation does not force foreign banks to register as subsidiaries in China, but allows foreign banks to decide whether to change their commercial presence in China according to actual needs. If you want to carry out RMB retail business, choose an independent legal person institution as the business existence model; If the main target of the service is wholly foreign-owned enterprises in China, and they do not intend to carry out RMB retail business in the near future, they can continue to take the form of branches.

However, according to the regulations, foreign banks in China can only be allowed to operate RMB retail banking and bank card business if they are registered as local banks, and these two businesses are the important sites that most foreign banks compete for after entering China. Accordingly, Ma Qing believes that "it can be expected that most foreign banks will adopt the business model of setting up foreign subsidiaries, Sino-foreign joint venture banks and other corporate banks." According to Guo Tianyong, director of the China Banking Research Center of the Central University of Finance and Economics, the establishment of subsidiaries by foreign banks in China can not only create conditions for fair competition between Chinese and foreign banks, but also facilitate the promotion of macro-control measures in China.

At present, because the business of foreign banks in China is not limited by the loan-to-deposit ratio case and the liquidity ratio, foreign banks in China can borrow a large amount of funds from their parent banks or overseas correspondent banks and lend them to domestic enterprises, although their deposits are not large. This mode of operation has obviously increased the difficulty of macro-control in China.