On 19 Sep,2014, China Banking Regulatory Commission released the No.6 Order Implementation on Administrative Approval for Foreign-owned Bank, which amends the Implementation on Administrative Approval for Foreign-owned Financing Institution (hereinafter refer to Implementation), and comprises with Regulation on Management of Foreign-owned Bank. Accordingly, the minimum amount of registered capital of solely foreign-owned bank and joint venture bank is RMB 1 Billion or equal foreign currency.
There are several amendments in the Implementation:
1.reduces the range of administrative approval maximally and simplifies the procedure of administrative approval. For example, the approvals for starting electric bank, provisional cessation of business, resuming business are canceled;
2.unifies the standard of establishing local bank or foreign-owned bank. Implementation maximally unifies the conditions and procedures for approval between local Chines-owned business bank and foreign owned bank, in accordance with the standard of management. Specially, the rule permitting only one branch established by foreign-owned bank in one city is cancelled;
3.strengthens the cautious supervision. For example, in respect to the management of senior executives, it stipulates the rules for substitute for performance in details, which may prevent the risk raised during the alteration of senior executives in the bank; regarding continued cautious supervision, it requires the foreign-owned bank summits related document to the China Banking Regulatory Commission after transfer of shares, in order to put the supervision of the market in an effective and continued matter.
（This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.）