CBRC to Actively and Steadily Promote the Opening Up of Banking Sector
CBRC is making changes to further open up the Chinese banking sector. CBRC is relaxing restrictions on the proportion of foreign ownership of Chinese banks and financial assets management companies other than private banks. It is implementing the same rules on the proportion of equity investments, both at home and abroad.
At the 19th Plenary Session of the 18th CPC Central Committee, it was proposed to set up a new system of an open economy. To this end, the implementation of the relevant opening-up policy requires the revision of existing laws and regulations and the regulatory system, the establishment and improvement of the corresponding prudential supervision mechanism and supporting measures, and the convergence of old and new policies. Key policy actions are as follows:
- CBRC will relax the scope of business options for foreign banks and promote the diversification of the domestic financial system.
- It expanded the operating space for foreign-funded banks, canceled the waiting period for RMB business of foreign-funded banks, supported foreign bank branches in engaging in government bond-related businesses, relaxed the requirements for RMB retail deposits held by foreign bank branches, supported foreign banks in financial market businesses, and increased the vitality of the financial system.
- It will optimize the regulatory rules, adjust the management requirements for operating capital of foreign bank branches and the regulatory assessment methods, and offer guidance on exerting the operating advantages and enhancing the competitiveness.
Related Link: Notification
Keywords: Asia Pacific, China, Banking, Securities, Opening Up Policy, Improving Prudential Supervision Mechanism, CBRC
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