No more waiting, as CBRC pledges to remove barriers on foreign banks seeking yuan business
China’s top banking regulator said on Wednesday it will remove the one-year waiting period on foreign banks seeking an in-country license for yuan trading
China will relax restrictions on foreign banks seeking to conduct yuan trading, removing an eligibility requirement that stipulated foreign banks needed to be operating in-country for one year, according to the nation’s top banking regulator.
The rule change will allow foreign banks to begin yuan trading upon setting up in China, a significant relaxation that reflects Beijing’s effort to push ahead with financial opening.
The waiting period was trimmed to one year from three years in January 2015, following complaints from foreign banks that the restrictions were blocking their growth in China.
The one-year waiting period was among the policies that would be scrapped, the China Banking Regulatory Commission (CBRC) said in a statement on its website on Wednesday.
The CBRC also said it will supports foreign banks to conduct government bond trading.
But the financial regulator did not provide a timetable for when the change will take effect, noting instead that the revision will involve the amendment of rules and regulations.