Foreign banks given easier China access

China's banking regulator announced on Friday that it will remove a ban on foreign banks opening more than one branch in each Chinese city, giving them easier market access.

"Foreign banks with sound risk controls and operation should be allowed to open more new branches in one city to enhance their capability to bolster the real economy," according to a document issued by the China Banking Regulatory Commission (CBRC).

As one of the moves to make the market access conditions for Chinese and foreign banks "more uniform," the CBRC also decided to abolish the "minimum operating capital" for setting up a branch bank.

Instead, a branch bank can be established so long as the applicant has the "disbursement capabilities for operating capital" and "operating funding is in place when the new branch is set up."

Putting them on an equal footing with Chinese banks, foreign banks will also no longer be required to apply for authorities' approval before introducing E-banking and debit card services, relocating a branch or establishing self-service banking.

The new regulations leave registration capital requirements for wholly foreign-owned banks unchanged. They still must have a minimum registration capital of one billion yuan (about 162.8 million U.S. dollars) to set up financial institutions in China.