China’s State Council has announced that new regulations on foreign-funded banks will come into effect on December 11.

The new regulations lift restrictions on Reminbi and foreign-currency transactions by solely foreign-funded and joint venture banks. Branches of foreign banks are banned from engaging in Renminbi services with Chinese citizens unless an individual makes a fixed deposit of no less than one million yuan (US$127,000). Solely foreign-funded banks and joint venture banks must have a minimum registered capital of one billion yuan (US$120 million) or the equivalent in foreign currencies.

Foreign banks with Chinese corporate status can issue Renminbi credit cards, said Wang Zhaoxing, assistant chairman of the China Banking Regulatory Commission (CBRC). The new regulations on bank cards will be issued later.

China has opened its foreign exchange business to foreign-funded banks and allowed 111 foreign financial institutions to offer Renminbi services for Chinese and foreign enterprises in 25 cities. The CBRC data show that the assets of foreign-funded banks in China totaled 105.1 billion U.S. dollars in September, accounting for 1.9 percent of all banking institutions in the country. ( Xinhua News )