CBRC Consults on Licensing Measures for Foreign Funded Banks
CBRC is consulting the public on amendments to its decision on implementing administrative measures for foreign-funded banks. CBRC intends to amend the measures for the implementation of administrative licensing matters of foreign-funded banks. Comments are due by January 27, 2018.
The amendments are intended to facilitate further expansion and opening up of the banking sector, minimize administrative licensing issues by simplifying administrative licensing procedures, and further standardize the market access standards for foreign-funded banks. The key amendments relate to the following three aspects:
- The regulations on the conditions, procedures, and application materials for the establishment of foreign-funded corporate banks for investment and establishment of domestic banking financial institutions have been added to provide a clear legal basis for foreign-funded corporate banks to conduct equity investments in banking financial institutions.
- The examination and approval of the four businesses of foreign-funded banks, such as the provision of overseas wealth management services for foreign customers, the handling of foreign wealth management services on behalf of clients, the securities investment fund custody business, and the drawing-off of interest-earning assets by liquidated foreign-funded financial institutions, were abolished and the reporting system implemented.
- The third amendment is to further standardize the market access standards for Chinese-foreign banks: the preparatory procedures for the establishment and opening of the merged branch and the approval of the opening of branches only; optimizing the conditions for foreign-funded banks to raise debt and capital to replenish the instruments; simplifying the qualification examination process for senior executives, The transfer of funds between the banks in a foreign exchange or the shift to a lower post should be changed from pre-approval to filing.
Related Links (in Chinese)
Comment Due Date: January 27, 2018
Keywords: Asia Pacific, China, Banking, Administrative Licensing, Foreign Funded Banks, CBRC
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