China to Cut Red Tape for Foreign-Backed Banks
Liao Shumin
/SOURCE : Yicai
China to Cut Red Tape for Foreign-Backed Banks

(Yicai Global) Dec. 29 -- The China Banking Regulatory Commission unveiled plans to amend measures for foreign banking licensing yesterday as it looks to level the playing field between local and overseas lenders.

The proposed changes, which are open to public opinion until Jan. 27, will provide a clear legal basis for foreign-backed banks to make equity investments in China, the commission said. The measures will make life easier for overseas lenders looking to open new branches and raise debt funds.

China's Foreign Ministry pledged to substantially ease entry barriers for foreign companies in banking, insurance, securities and funds during US President Donald Trump's state visit on Nov. 9, Bloomberg reported. But the changes will happen "in accordance to China's own timetable and road map," the report added.

The CBRC will also introduce a notification system in four business areas, including wealth management for foreign customers and securities investment funds, and will look to revise other laws and regulations to stick to its vow of opening up, it added.

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Keywords: Foreign Banks , China Banking Regulatory Commission