Date
16 October 2018

China to raise capital bar for foreign-funded banks, paper says

China is planning to raise the threshold of registered capital for foreign-invested banks, the Shanghai Securities News reported Wednesday, citing a set of draft rules released by the China Banking Regulatory Commission. Under the proposed regulations, the minimum registered capital for foreign-funded banks will be increased to 1 billion yuan (US$162.87 million) or its equivalent in foreign currencies, up from the current 300 million yuan, according to the newspaper. Further, controlling shareholders of such banks must be commercial lenders and they must seek approval from the financial regulators of their countries, the report said. To curb risks, the CBRC will also tighten the supervision of derivatives transactions by such banks, it added.

– Contact HKEJ at [email protected]

KZ/AC/CG

 

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