CHINA’S banking regulator has introduced steps to cut the red tape for foreign banks, Xinhua news agency said on Saturday, as part of the government’s ongoing effort to promote investment in the country’s fast-growing financial sector.
The China Banking Regulatory Commission has revised its rules for foreign banks, scrapping approval procedures in four areas including overseas wealth management products and portfolio investment funds, the report said.
The top banking watchdog added new provisions on the licensing conditions, procedures and application materials for foreign-funded banks to establish or invest in domestic banking financial institutions, which will provide a clear legal basis for the foreign players’ equity investments in the country.
The statement said that foreign banks will only need to report their services like overseas wealth management business and portfolio investment funds to the commission rather than obtaining its approval in advance.
To unify the market entry standards for domestic and foreign lenders, the regulator also revised rules on the opening of sub-branches of foreign-funded banks and simplified the administration procedures for them to appoint senior executives, issue bonds and seek other ways to supplement capital.
China piloted the policy earlier this month after soliciting the public opinions since last December.