How To Apply for Foreign Banking License In China

How To Apply for Foreign Banking License In China

  • The applicant must make an inquiry to the appropriate CBRC local office at least one month prior to the end of the preparatory period , if they request extensions of period for preparation. The application letter must be signed by the individuals who are in charge of the preparation team.
  • The application is rejected by the appropriate CBRC regional office in the event that you submit within the stipulated deadline.
  • The appropriate CBRC local office must decide on approval or denial within 15 days from receiving the request for an extension of the period of preparation. If the application is rejected the local office responsible for the rejection CBRC local office must send an official notice in writing to the applicant stating the reasons for refusal and then send an original in writing to CBRC headquarters.
  • The regulatory body for banking within the State Council shall, within six months after the date of receiving all the documents needed to be prepared for the establishment of a foreign-funded bank that is operational decide to approve or decline to allow the establishment preparation and inform the applicant of the decision in writing. If they decide not to approve the establishment preparation and if it does, it must provide the reason.
  • In certain circumstances the bank’s regulation agency within the State Council cannot complete the examination and decide to either approve or not allow the establishment preparation within the time period specified in the preceding paragraph it can extend the period of exam and notify that applicant in writing. However the duration of the extended period is not more than three months.
  • The applicant must upon the basis of the approval document for the process of preparing for establishment and obtaining an application form for the business’s beginning from the regulatory body for banking at the place where the bank proposed to be established.
  • The applicant must complete the necessary preparations for establishment within six months of the date that they receive the approval to prepare. If the applicant fails to complete the process within the stipulated timeframe and provides the reasons for the delay and, if approved of the banking regulatory authority at the site in which the bank will be established the deadline is extended to three months. If the applicant fails to finish the preparation within the extended time frame the decision of the bank regulation agency in the State Council on approving the application for establishment will immediately become null and void.

Documents Required Foreign Banking License 

  • A written request to incorporate the solely foreign-funded financial institution or the solely foreign-funded finance corporation that includes names of the solely foreign-funded bank or solely funded by foreign funds financing company as well as the capital registered, and the business activities the company or the bank intends to conduct and so on. ;
  • An analysis of feasibility
  • The Articles of Association that will be the constitution of the new solely funded by foreign funds banking institution as well as the only foreign-funded finance corporation;
  • The business license (photocopy) granted by relevant regulators of the country of origin or the region where the applicant lives as well as a written report of the authorities on the application
  • Annual reports from the applicant for the past three years consecutively; and
  • Other information to be provided according to the People’s Bank of China.

Office Locations and Contacts

China Banking Regulation CommissionJia N0.15 Financial Street, Xicheng District, Beijing, 100140
Tel: 010-66279113
Web: www.cbrc.gov.cn
CBRC Offices

What Are All The Eligibility

The term”foreign-funded” bank in the Regulations refers to all of the banks that are authorized to establish on the territory of the Peoples Republic of China in conformity with the applicable legislation and rules that govern China. Peoples Republic of China:

  • a bank wholly funded by foreign funds, and financed entirely by a foreign institution or in conjunction with any other foreign financial institution
  • A Chinese-foreign joint venture bank with an international financial institution and the help of a Chinese business or company.
  • A branch of a bank in another country or

A representative office of an international bank.

Instructions

“Prudential requirements” or “prudential requirements” should include, but not be limit themselves to:

  • A sound corporate governance structure
  • A steady and reliable operational performance.
  • Financial statements prepared in accordance with the prudent accounting principle and a clear report from the accounting firm of their financial statement for the three consecutive years prior the filing of the application.
  • There is no evidence of serious violations of any laws or regulations and no evidence of poor credit.
  • A good reputation in the sector of banking and a positive image in the public sphere;
  • Stable economic and political conditions in the country of origin or the region that the candidate is in instance of the establishment of a branch of a foreign bank, as well as an effective communication system between the financial supervisory authorities and CBRC and
  • Other pertinent requirements for financiers in the sector are stipulated in the law and regulations.

Requirements Information

  • Full Name of the Applicant
  • Address of the Applicant
  • The location of the Commercial bank
  • License Number
  • A tax clearance document.
  • Documentation of tax payments made in the form of provisional tax
  • Addresses, full names and the names of workers of the Commercial Bank.
  • Documentation of legal identity.
  • Evidence of a legal address. Rent receipts from your house, as well as utility bills that state your home address is acceptable.
  • Statement from the bank.

Documentation is needed

  • Establishment of a foreign-funded banking institution and its branch is subject to review and approval by the banking regulatory authority.
  • Foreign bank is commercial banks that are established outside the jurisdiction of Peoples Republic of China following the approval or authorization of the financial oversight authority of the region or country of the bank’s incorporation.

Information that could be helpful

  • The People’s Bank of China is the authority to oversee and manage foreign-funded financial institutions. branches from the People’s Bank of China shall be responsible for the routine supervision and regulation of financial institutions that are foreign-funded under their authority.
  • The minimum registered capital for a solely-foreign-funded bank or a joint-equity bank shall be the amount of freely convertible currencies equivalent to Renminbi 300 million yuan. The minimum registered capital of a solely foreign-funded financial company or joint-equity finance firm will be the sum of currencies that are freely convertible that are equivalent to 200 Renminbi million Yuan. The capital registered must be in the form of paid-up capital.

Other uses for the document/certificate

A bank that is solely funded by foreign currency or a branch of a foreign bank or joint-equity institution may be able to, within the terms of business that have been that is approved by People’s Bank of China, participate in all or part of the following business activities:

  • accepting cash from people
  • providing short-term, medium-term or long-term loans;
  • the handling of acceptance and discounting of instruments that are negotiable;
  • selling and buying bonds of the government and financial sector as well as selling and buying foreign currencies other than stocks
  • offering services for a letter of credit and guaranty services;
  • handling settlements for foreign and domestic settlements;
  • purchasing and selling foreign exchange, and acting as an agent for sale and purchase of foreign exchange
  • exchange of foreign currencies
  • inter-bank lending;
  • banking card business
  • providing safe deposit box services;
  • offering the services of a credit and financial standing inquiry and consulting services;
  • other business ventures that are authorized through China’s People’s Bank of China.

External Links

Rules that apply to the Peoples Republic of China on the Administration of Banks that are funded by foreign funds

Rules from the People’s Republic of China on Administration of Foreign-funded Financial Institutions

How To Apply for Foreign Banking License In China
How To Apply for Foreign Banking License In China

Order of China Banking Regulatory Commission (No.4 2004, 2004)

China Banking Regulatory Commission

People’s Bank of China

Other

When a party, with or without approval from the bank regulation agency within the State Council, establishes a foreign-funded bank or engages in activities that are that are within the banking institution business or business, the bank regulator of the State Council shall have such company or bank banned. Within five years from the date of banning the bank’s regulator of the State Council shall not accept the application of the party concerned.

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