In order to support the amendment and implementation of the Regulation of the People's Republic of China on the Administration of Foreign-funded Banks (Regulation), the China Banking Regulatory Commission (CBRC) recently revised the Detailed Rules for the Implementation of the Regulation of the People's Republic of China on the Administration of Foreign-funded Banks (Detailed Rules) and developed the draft for soliciting public opinions, said the CBRC on its website.

 

According to the department director of CBRC, 58 articles in the Detailed Rules were revised. Of which, 3 articles echo the amendments in the Regulations, 42 articles are related with the Methods, and 13 articles are improved in diction. The Detailed Rules was shortened to 100 articles from 134 articles. The deleted articles are mainly the procedural ones same with those in the Methods.

 

According to the director, on December 20, 2014, the State Council issued the No. 657 Order to revised Articles 8, 10, 11, 12, 28 and 34. The amendments include 1) canceling the requirement for establishing a representative office before establishing a business operation; 2) releasing the RMB business qualification from three year or above operation to one year or above operation for a business operation, canceling the requirement for making profit for two consecutive years before applying for the RMB business; 3) canceling the requirement of minimum operation fund allocation to Chinese branches of foreign-funded banks.

 

The amendments focus on the appropriate release of conditions of the access and RMB business of foreign-funded banks based on the actual situation of these banks’ operation in China, said the director.

 

Source: Nanfang Daily, March 13, 2015