NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2006/12/12 - Chinese banking sector opens up for global competition with new rules coming to light. Following these regulations, overseas banks are enthusiastic about expanding their businesses in China.
On 17 November 2006, overseas banks announced that they intend to expand their operations in China subsequent to the release of new rules. The rules are said to have opened up China’s banking sector for global competition.
HSBC, Standard Chartered, Bank of East Asia, and Hang Seng all corroborated to AFP that they have plans to launch locally joint ventures in the country, as requisite by new regulations.
China guarded new rules enabling overseas banks into the money making retail banking industry, as officials said that the stringent requirements of the new regulations meet promises on opening the long protected retail-banking sector to overseas competition.
The rules require overseas banks to locally incorporate if they intend to offer local currency services to Chinese individuals. Beyond that, overseas bank have to put up one Billion Yuan (or US$ 127 Million) for the incorporated bank and reserve 100 Million Yuan for every branch.
The new regulations (effective from December 11 2006) are designed to realize one of the last commitments made by China while the country joined WTO five years ago for opening up its banking sector to global competition. Executives of overseas banks have, however, complained that increased capitalization and other requirements are likely to slow their ability of setting up broad branch networks.
As per the views expressed by a senior Research Analyst at RNCOS, who has recently researched a report on “China Banking Sector Analysis (2006-2009)”, the new rules will enable foreign banks access local currency retail market and will subject them to several similar regulatory requirements like that of local banks, while there’ll be some tougher restrictions.
“China Banking Sector Analysis (2006-2009)” report also addresses some interesting issues that are critical to the success of those venturing in to banking sector in China, such as:
- Get insight into the trends in market performance
- Pinpoint sectors of growth and identify the driving factors
- Opportunities, Strategies and challenges in Chinese banking industry
- Identify market, brand leaders, and understand the competitive environment in banking sector in China
About the report
A must read for investors, researchers, businesses and individuals who are closely monitoring the developments in China banking sector, this report provides extensive research and objective analysis on the growing banking industry, their product quality, and their services in India. It helps clients to analyze the leading-edge opportunities critical to the success of the banking industry in China.
RNCOS, incorporated in 2002, provides Market Research Reports for your business needs and aims to put an end to your information pursuit. Our expertise in gathering global business information for industry research, corporate training, growth consulting, and business consulting, brings reputed companies and firms to us for business enhancement solutions. We can be your one-stop-shop for Industry research information and niche market analysis.