Metropolis moves to quicken approval process, accelerate introduction of new banking and insurance agencies

Shanghai has accelerated the opening-up of the city's banking and insurance industries by increasing the efficiency of regulatory approval for overseas financial institutions looking to settle there.

"When Taiwan-headquartered Cathay United Bank Co Ltd upgraded its branch in Shanghai to a subsidiary last year, we shortened the process of regulatory approval for its business opening from up to three months down to three weeks, without relaxing regulatory requirements," said Zhou Wenjie, a senior official of the China Banking and Insurance Regulatory Commission's (CBIRC) Shanghai Office.

Sam Lin, president of Cathay United Bank (China) Ltd, said at the opening ceremony of the Shanghai bank subsidiary on Sept 10 that it will apply for retail banking and wealth management licenses, with a focus on expanding its retail banking business.

Previously, more than 90 percent of Cathay United Bank's businesses in the Chinese mainland concentrated on corporate banking.

The local banking and insurance regulator has also expanded the business scope of Shanghai-based Willis Insurance Brokers Co Ltd, a subsidiary of Willis Group, on April 27－the same day the company filed an application to that effect.

On Nov 23, Allianz received regulatory approval for the preparatory establishment of an insurance holding company in the Chinese mainland. The new company is expected to open this year, and will become the country's first-ever insurance holding company to be wholly-owned by a foreign insurer.

On the basis of wholly managing its existing life insurance, and property and casualty insurance, the holding company will further build the group's asset management and reinsurance business platforms, fully integrate its businesses in the mainland, and serve as the regional headquarters of Allianz, said Zhou at a news conference on Thursday.

ICBC-AXA Life Assurance Co Ltd and BoComm Life Insurance Co Ltd also received preparatory approvals from the industry regulator to establish their own asset management subsidiaries in the mainland.

"After the CBIRC launched measures in April to speed up the opening of the country's banking and insurance sectors, we held meetings with foreign institutions and overseas regulators as soon as possible to push ahead with policy transmission," Zhou said.

Last year, Siam Commercial Bank, Banque Marocaine du Commerce Exterieur, and Arab Bank opened branches in Shanghai.

To date, the number of overseas banks in Shanghai has reached 21, accounting for more than half of the overseas banks across China. A total of 228 banking institutions from 30 countries and regions have settled in Shanghai, compared with 52 foreign banking institutions at the end of 2001.

Last year, foreign and Chinese banks carried out 102 new cooperation projects in the metropolis, with a total value of nearly 400 billion yuan ($59.3 billion). Total assets of overseas banks in Shanghai increased by nearly 700 percent from the end of 2001 to hit 1.5 trillion yuan at the end of 2018, according to the CBIRC Shanghai Office.

To better implement China's reform and opening-up policy, the Shanghai Banking Association has been continuously attracting diversified financial institutions, including foreign banks, to join the professional, non-profit trade association that speaks for banks and other financial institutions in Shanghai.

Xu Bin, chairman of the Shanghai Banking Association and president of Bank of Communications Co Ltd's Shanghai branch, said: "The association has 226 members so far. It plays a very positive role in promoting domestic and international exchanges, and further creating an atmosphere of opening-up."