Can a foreign bank receive deposit or offer other services in Chinese currency (RMB) in China?
Chinese branches and subsidiaries of foreign banks are in general allowed to receive deposits or make loans to Chinese customers with RMB. They can also offer services in RMB in other areas including letter of credit, bank guarantee, domestic settlement, honouring commercial papers, trading on governmental bonds, financial bonds, shares or other securities, insurance agency, foreign exchange trading agency, safe box, creditability investigation and consultation, etc. However, to be qualified for such RMB businesses, the following conditions have to be met by such branch banks or subsidiary banks: 1) having operated in China for no less than 3 years; 2) having a profiting history of 2 years prior to the application; and 3) other prudential criteria explicitly required by CBRC. Foreign banks shall determine the interest rates for deposits and loans and commission fees in accordance with PRC provisions. In handling deposits, foreign banks shall lodge deposit reserve funds in accordance wi
