BIZCHINA / Center
Overseas banks can issue renminbi cards
By Yu Lu (China Daily)
Updated: 2007-05-25 08:24
China will allow foreign banks to issue their own renminbi-denominated
credit and debit cards immediately, in accordance with a decision reached
at the China-US Strategic Economic Dialogue.
Related readings:
Wu Yi: Strategic talks are a complete success
US-China talks benefit banks
Wu aims to deflect US Congress pressure
China, US seek to ease trade woes
"This will allow US banks to offer a full range of renminbi services and
increase the amount of capital under their management for investment," a
US official said.
Under the Administrative Rules on Foreign Banks, which took effect last
December, overseas banks can issue their own brand of renminbi bank cards
when they register as local entities.
However, regulations and technical problems, such as risk control and
payment systems, need to be clarified in the new banking card regulation.
"An initial draft of the regulation has been completed," said Su Ning,
deputy governor of the central bank, at a press conference last month.
According to Su, the regulation, drafted by the Legislative Affairs
Office of the State Council, the People's Bank of China and the China
Banking Regulatory Commission, is under revision and will be issued as
soon as possible.
The current bank card business in China is regulated under a rule issued
in 1997 by the central bank, which has no terms regarding the
foreign-invested bank card business.
Many overseas banks that had incorporated in China and have plans to do
so are waiting for the new bank card regulation to move forward.
"We plan to issue a renminbi-denominated debit card first and then a
credit card within the year," Raymond Yu, general manager of Bank of East
Asia (China) Ltd, said in an interview with China Daily.
He said the bank has agreed with China UnionPay, the only Chinese bank
card system, to cooperate on bank card transactions, and it was waiting
for regulatory approval.
Officials from HSBC and Standard Chartered Bank also said that they are
preparing for the business and will announce their plans when the new
regulation is issued.
It is expected that locally-incorporated banks will enjoy the same
regulatory treatment as Chinese banks.
Domestic banks are also expecting the issuance of the new bank card
regulation. The old regulation is considered out of date because of the
rapid development of the financial market.
As an important part of the banks' retail business, foreign-invested
banks have started to prepare for it since last year.
(For more biz stories, please visit Industry Updates)
Learn Chinese, Chinese Mandarin
No comments:
Post a Comment