China Banking Regulatory Commission, Further Opening of Renminbi Services to Foreign-invested Financial Institutions Notice

Issued: October 24 2003

Main contents: The Notice states that from December 1 2003 foreign-invested financial institutions may apply to engage in renminbi services in Jinan, Fuzhou, Chengdu and Chongqing. Foreign-invested financial institutions already engaged in renminbi services may also apply to extend their renminbi services to the four cities from December 1 2003 provided that they have been profitable for two consecutive years before the application and fulfil other prudential criteria stipulated by the China Banking Regulatory Commission. Such criteria include a reasonable legal person governance structure, stable risk control system, sound internal control system, effective management information system, good business performance and effective anti-money laundering measures, and no record of major violations of laws and regulations. Foreign-invested financial institutions that have not obtained the approval for engagement in renminbi services may at the same time apply for provision of renminbi services to Chinese enterprises when applying for engagement in renminbi services.
Related legislation: PRC Administration of Foreign-funded Financial Institutions Regulations, Dec 20 2001, CLP 2002 No.1 p5 and PRC Administration of Foreign-funded Financial Institutions Regulations Implementing Rules, Jan 29 2002, CLP 2002 No.3 p77