The China Banking Regulatory Commission (CBRC) has eased licensing requirements for foreign banks to boost competition in the sector.
Under the new rule, foreign banks in China including wholly-owned foreign bank operations and joint ventures will be able to conduct a range of services including treasury bond underwriting, custody and financial advisory services without the CBRC’s licence.
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The banks engaging in such services will however need to report to the regulator within five days once the business begins.
Foreign banks in China will also be allowed to collaborate with their global parent firms to offer services such as bond issuance, IPOs, M&As, and financing overseas.
These foreign banks will also be allowed to invest in some domestic financial institutions.
The circular allows global banks’ onshore entities, including wholly owned foreign banks, joint-ventures, and their onshore branches, to underwrite Chinese government bonds, run custodian businesses and provide financial advisory services without submitting applications to the CBRC.
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