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Overseas banks to move into RMB business
By Zhang Dingmin (China Daily)
Updated: 2005-12-06 05:49

71 foreign banks set up 238 branches 

A total of 71 foreign banks from 20 countries and regions had set up 238 operational entities in Chinaby the end of October this year, Liu said.

Meanwhile, 173 foreign banks from 40 countries and regions haveset up 238 representative offices in 23 cities in China.

The total assets of foreign banks in China amounted to 84.5 billion US dollars, accounting for about 2 percent of the total banking assets in China, Liu told a press conference held by the Information Office of the State Council.

The foreign currency loans made by them accounted for 20 percent of those made by all banking institutions in China.

The scope of business permissible for foreign banks in China has also been further enlarged as 138 of them are allowed to engage in renminbi-dominated business, and 15 are approved to offer web services, Liu said.

While honoring its World Trade Organization commitments, China also opened a number of new businesses for foreign banks, such as custodian services for qualified foreign institutional investors (QFII), insurance agency business, custody business for overseas use of insurance foreign exchange funds, and custody business for stock assets of insurance companies.

Overall, foreign banks in China are now permitted to offer more than 100 types of products and services under 12 broad categories of business activity.
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