China to allow more foreign banks register locally

Shanghai, Feb 8: China is expected to allow another 20 foreign banks to incorporate locally this year, opening its massive banking market wider to foreign players and intensifying competition in the world's fourth-largest economy.

In December, Beijing granted approval for the first batch of nine foreign banks to prepare for local registration, an initial step in granting national treatment to foreign lenders.

Banking industry sources close to the plan told Reuters on Thursday that China Banking Regulatory Commission (CBRC) was expected to approve the local incorporation of another 10 foreign banks as early as next month.

The CBRC is also expected to give the go-ahead to another 10 foreign banks in the second half of this year, taking the total number of foreign banks to receive the approval to about 30, the sources said.

Those expected to receive the green light in March include JPMorgan, Deutsche Bank, South Korean lender Hana Financial Group and Singapore's Overseas-Chinese Banking Corp., the sources told Reuters.

JPMorgan and Hana confirmed they had applied to CBRC for local incorporations, but did not say when they expect to win the approvals.

CBRC and other banks declined comment.

The nine which have already received the approval in December are Standard Chartered, Bank of East Asia, HSBC, Hang Seng Bank, DBS, Bank of Toyko-Mitsubishi, Mizuho Corporate Bank, Citigroup Inc. and ABN AMRO.

Reuters