CHINA / National |
Foreign banks given 3-5 years to adopt rulesUpdated: 2006-11-27 09:32 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 a senior official with the banking regulator. "Foreign banks will be subject to different compliance timetables according to their size," the Hong Kong newspaper cited Huang Yi, director-general of the China Banking Regulatory Commission's supervisory department, as saying. The new rules take effect on Dec 11. The CBRC is expected to publish more details soon on local incorporation of branches which foreign banks need to submit to compete on a more equal footing with domestic banks. Banks incorporated locally will be able to perform yuan banking without any limits on the amounts involved and to issue credit and debit cards. Unincorporated banks will be allowed to accept deposits of more than 1 mln yuan and will not be able to issue credit and debit cards. Only foreign banks that accept deposits will be allowed to lend and the lending will not be allowed to exceed 75 pct of the amount they are holding in deposits.
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