Foreign banks' applications get nod
(China Daily)Updated: 2006-12-11 09:52
There is also a preferential policy for the approval of a foreign bank's renminbi business operations in the above mentioned areas.
The general requirement for foreign outlets to conduct renminbi business is that they have to be in operation for at least three years and have made profits in the past two consecutive years.
"We look at the bank's overall performance in China, rather than the individual outlet in the city where it applies for," said Duan.
It is believed that due to the relative underdevelopment of these regions, it is much more difficult for banks to turn a profit in a short period.
The CBRC in recent months has organized study tours for foreign banks to the central, western and northeast cities like Wuhan, Xi'an, Chengdu and Shenyang.
"Through the study tours, foreign banks found there were business opportunities in these less developed regions and showed their willingness to expand to these regions," said Duan.
(China Daily 12/11/2006 page2)
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