The China Banking and Insurance Regulatory Commission (CBIRC) has released new regulations to ease the entry of foreign lenders into the local market.
The new regulations nullify the required total assets for foreign banks to set up businesses in the country.
Go deeper with GlobalData
The regulations also eased limitations on shareholders of joint venture lenders.
Additionally, the requirement for equity management, anti-money laundering, and anti-terrorist financing have been beefed up.
The move comes amidst China’s ongoing trade battle with the US.
In December last year, China injected additional capital into the banking system to support and stabilise the economy, Bloomberg reported.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataPeople’s Bank of China, the central bank of the country, awarded CNY300bn ($43bn) to the banks through the medium-term lending facility.
This follows another $16bn that was provided earlier in the month. In November, China added $29bn in the banking system.
Postal Savings Bank of China (PSBC) also planned to raise CNY32.71bn ($4.67bn) through one of the largest initial public offerings (IPO) in the country.
The move is said to be part of the government’s strategy to globalise and strengthen local lenders.
China is also planning to introduce a series of reforms to support struggling banks and improve financial stability.
