Chinese Banking Regulatory Commission (CBRC) approved Bank of East Asia, HSBC, Citigroup, and Standard Chartered for setting up local banking subsidiaries.
On 20th March 2007, the Chinese Banking Regulatory Commission (CBRC) approved Bank of East Asia, HSBC, Citigroup, and Standard Chartered for setting up local banking subsidiaries. Once it is incorporated, banks can apply for wide range services like wealth management, credit cards and mortgage loans and also can open branches, says the English.people.
News published in theedgedaily says that Industry sources which are close to China's banking regulator anticipates setting up of more than five regional banks this year since the government is compelling weak and local lenders to merge. New banking regulations by Beijing foreign banks are required overseas banks to incorporate locally for gaining complete access to China market. However, a greater emphasis is also given on the economic development of the country. It is expected that China will be generating approx. $130 billion banking revenues during the period 2004-2010.
'The banking sector's opening must satisfy the needs of country's economic development,' said the China Banking Regulatory Commission (CBRC) to forbes.com. Role of banking has improved with the liberalization of the country. With the approval of the regulator for the opening of more foreign banks, more and more banks started approaching China for setting up a local banking business. However, this can be achieved only if the country lets foreign investors to come in the country and they too abide to the rules and regulations of China, which was sketched out at WTO in the year 2001.
Research analyst at RNCOS says that, China's banking sector is large with a huge quantum of potential customers. The life-style of the country is fast changing and country's youth in high-income bracket wants to enjoy all amenities of life. Also, with increased competition in the market, loans are available at low-interest rates. Hence, it's a good time for any overseas bank to amplify its clientele base by branching out in China.
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