New CBRC rules ease foreign bank expansion

The China Banking Regulatory Commission has drawn up easier rules for foreign banks, removing the year-long waiting period between new branch openings and reducing capital requirements for branches conducting RMB-denominated business. Capital requirements for branches doing business with companies decrease from RMB 400 million to RMB 300 million and from RMB 600 million to RMB 500 million for branches doing business with individuals. The changes go beyond China's original WTO commitments on opening up its financial services sector. Analysts say the reforms are a warning to domestic institutions to get moving on improving efficiency and services.