China sets 5-year window for foreign banks

China will give foreign banks three to five years to comply fully with its new rules on their participation in the banking industry, the South China Morning Post reported, citing Huang Yi, director-general of the China Banking Regulatory Commission's supervisory department. The compliance timetable will depend on the bank's size, Huang said. The new rules, which take effect on December 11, allow locally incorporated foreign banks to perform yuan banking without any limits on the amounts involved and to issue credit and debit cards. Unincorporated banks will be restricted to accepting deposits greater than US$127,000 and will not be able to issue credit and debit cards. The CBRC is expected to publish more details soon on local incorporation of branches.