China - Apply for Foreign Banking License

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Procedure

The applicant shall submit an application to the relevant CBRC local office at least one month before the expiration of the preparatory period if it requests for an extension of the preparatory period. The letter of application shall be signed by the persons in charge of the preparatory team.

The application will be rejected by the relevant CBRC local office if it is submitted the application beyond the required time limit.

The relevant CBRC local office shall make a decision of approval or rejection within fifteen days from the date of receiving the application for extending the preparatory period. In the case of rejection, the relevant CBRC local office shall give a written notice to the applicant explaining the reasons of rejection and send a copy to the CBRC headquarters.

The banking regulatory agency of the State Council shall, within six months from the date of receipt of complete application documents required for the preparation for establishment of an operational foreign-funded bank, make a decision to approve or not to approve the preparation for establishment and notify the applicant of such decision in writing; if deciding not to approve the preparation for establishment, it shall give the reasons therefor.

Where, in special circumstances, the banking regulatory agency of the State Council cannot complete the examination and make a decision to approve or not to approve the preparation for establishment within the time limit prescribed in the preceding paragraph, it may appropriately extend the time limit for examination and shall notify the applicant of the extension in writing; however, the extended time limit shall not exceed three months.

The applicant shall, on the strength of the document approving the preparation for establishment, obtain an application form for business commencement from the banking regulatory agency in the place where the proposed bank is to be located.

The applicant shall accomplish the preparation for establishment within six months from the date of obtaining the approval for preparation. Where the applicant fails to accomplish the preparation within the prescribed time limit, it shall give the reasons therefor; and with the approval of the banking regulatory agency in the place where the proposed bank is to be located, the time limit may be extended for three months. Where the applicant fails to accomplish the preparation within the extended period, the decision made by the banking regulatory agency of the State Council on approving the preparation for establishment shall automatically become void.

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Required Documents

• A written application for the incorporation of the solely foreign-funded bank or the solely foreign-funded finance company, which shall include the name of the proposed solely foreign-funded bank or the solely foreign-funded finance company, the registered capital, and the types of business operations the bank or the company applies to engage in, etc.;
• A feasibility study report;
• The articles of association of the proposed solely foreign-funded bank or the solely foreign-funded finance company;
• The business licence (photocopy) issued by the relevant competent regulatory authorities of the home country or region of the applicant and a written opinion of the authorities on its application;
• The annual reports of the applicant for the last three successive years; and
• Other data to be submitted as required by the People's Bank of China.

Office Locations & Contacts

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

Eligibility

The term foreign-funded bank in these Regulations means any of the following institutions that are approved to be established within the territory of the Peoples Republic of China in accordance with the relevant laws and regulations of the Peoples Republic of China:

• a wholly foreign-funded bank funded solely by a foreign bank or jointly with any other foreign financial institution;
• a Chinese-foreign joint venture bank jointly funded by a foreign financial institution with a Chinese company or enterprise;
• a branch of a foreign bank; or
• a representative office of a foreign bank.

Fees

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Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

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Sample Documents

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Processing Time

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Related Videos

Videos explaining the procedure or to fill the applications. 
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Instructions

The "prudential requirements" shall include but not limited to the following:

• Sound corporate governance structure;
• Persistently sound operational performance;
• Financial statements drawn up in line with the prudent accounting principle, and clean report by the accounting firm on the financial statements for three consecutive years prior to filing the application;
• No record of serious violation of laws or regulations, and no record of bad credit;
• Favorable reputation in the banking sector and good social image;
• Stable political and economic situation in the home country or region of the applicant in the case of the establishment of a branch by a foreign bank, and a sound communication mechanism between the home financial supervisory authority and the CBRC; and
• Other relevant requirements on investors in the financial sector as provided for in the laws and regulations.

Required Information

• Full Name of Applicant
• Address of Applicant
• Location of Commercial bank
• License Number
• A tax clearance certificate.
• Evidence of provisional tax payment
• Full names, addresses and designations of the employees of the commercial Bank.
• Proof of legal identification.
• Proof of legal address. House rent receipts, and utility bills stating your house address are acceptable.
• Bank statement.

Need for the Document

The establishment of a foreign-funded bank and its branch shall be subject to examination and approval by the banking regulatory agency.

Foreign bank refers to a commercial bank incorporated outside the territory of the Peoples Republic of China following the approval or authorization by the financial supervisory authority of the country or region of its incorporation.

Information which might help

The People's Bank of China is the competent organ for administration and supervision of foreign-funded financial institutions; and the branch offices of the People's Bank of China shall exercise routine supervision and regulation of foreign-funded financial institutions under their jurisdiction.

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 for a solely foreign-funded finance company or a joint-equity finance company shall be the amount of freely convertible currencies equivalent to Renminbi 200 million yuan. The registered capital shall be paid-up capital.

Other uses of the Document/Certificate

A solely foreign-funded bank, a foreign bank branch or a joint-equity bank may, in accordance with the scope of business approved by the People's Bank of China, engage in part or all of the following business operations:

• taking in deposits from the general public;
• granting short-term, medium-term and long-term loans;
• handling acceptance and discount of negotiable instruments;
• buying and selling government bonds and financial bonds, and buying and selling foreign currency securities other than stocks;
• providing letter of credit services and guaranty;
• handling domestic and foreign settlement;
• buying and selling foreign exchange and acting as an agent for the purchase and sale of foreign exchange;
• exchange of foreign currencies;
• inter-bank lending;
• bank card business;
• providing safe deposit box services;
• providing credit and financial standing investigation and consultancy services; and
• other business operations approved by the People's Bank of China.

External Links

Regulations of the Peoples Republic of China on Administration of Foreign-funded Banks

Regulations of the People's Republic of China on Administration of Foreign-funded Financial Institutions

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

China Banking Regulatory Commission

People's Bank of China

Others

Where a party, without approval of the banking regulatory agency of the State Council, establishes a foreign-funded bank or illegally engages in the activities within the scope of business of a banking institution, the banking regulatory agency of the State Council shall have such bank or business banned. And within five years following the date of the banning, the banking regulatory agency of the State Council shall not accept the application submitted by the said party