The Measures of the China Banking Regulatory Commission for the Implementation of Administrative Licensing of Foreign Banks (hereinafter, the "Measures") were adopted during the Chairman's Meeting of the China Banking Regulatory Commission on September 11, 2014. The Measures came into effect on the day of their promulgation.
The Measures regulate foreign banks operating electronic banking business or credit card business, changes to the working capital or business address of an operating branch, establishment of self-service banks, extension to the period of construction and launch of foreign banks and their branches, temporary suspension, resumption after suspension, inward transfer of credit assets from the head office or an affiliated bank, and utilization of interest-bearing assets by the branches of foreign banks..
The Measures specifically stipulate that a foreign bank is subject to the same licensing terms, procedures and deadlines governing Chinese commercial banks. In terms of capital injection, a foreign bank's expansion of capital injection channels is supported and subject to the same terms and procedures as Chinese commercial banks. Meanwhile, the requirement that a foreign bank can only apply to set up one branch at a time in the cities where it is located and the provision regarding the minimum working capital requirement for a branch are canceled.
In addition, the Measures also stipulate that a sole-proprietary foreign bank and a Sino-foreign bank shall have a minimum registered capital of RMB1 billion or an equivalent amount in freely convertible currencies.