What Is a Foreign Branch Bank?

A foreign financial institution is a financial institution that is registered outside a country and approved by the financial regulatory authority or industry association in the country or region where it is located. Since the reform and opening up, more and more foreign banks have begun to enter the Chinese market, which has played an important role in improving China's financial system and the development of the financial market. In the process of economic transition, foreign financial institutions have certain advantages in corporate governance, risk control, risk management, credit culture, decision-making procedures, incentive mechanisms, and asset management. Foreign banks have huge room for development, especially in promoting the development of financial markets. And product development has great potential.

Foreign financial institution

A foreign financial institution is a financial institution that is registered outside a country and approved by the financial regulatory authority or industry association in the country or region where it is located. Since the reform and opening up, more and more foreign banks have begun to enter the Chinese market, which has played an important role in improving China's financial system and the development of the financial market. In the process of economic transition, foreign financial institutions have certain advantages in corporate governance, risk control, risk management, credit culture, decision-making procedures, incentive mechanisms, and asset management. Foreign banks have huge room for development, especially in promoting the development of financial markets. And product development has great potential.
Chinese name
Foreign financial institution
Foreign name
Foreign financial institution
Establishment of foreign financial institutions
According to the scope of business approved by the People's Bank of China, foreign banks, branches of foreign banks, and joint venture banks may partially or wholly operate the following types of businesses:
Forex deposits. Foreign exchange lending. Discounted foreign exchange bills. Approved foreign exchange investment. Foreign exchange remittance. Foreign exchange guarantee. Import and export settlement. Proprietary and foreign exchange trading on behalf of clients. Acting for foreign currency and foreign exchange bill exchange. Foreign currency credit card payment. Safekeeping and safe deposit box business. Credit investigation and consulting. Approved local currency business and other foreign currency business. According to the scope of business approved by the People's Bank of China, a foreign-funded financial company or a joint venture financial company may partially or wholly operate the following types of business:
Each foreign exchange deposit of not less than 100,000 USD with a term of not less than 3 months. Foreign exchange lending. Discounted foreign exchange bills. Approved foreign exchange investment. Foreign exchange guarantee. Proprietary and foreign exchange trading on behalf of clients. Credit investigation and consulting. Forex Trust. Approved local currency business and other foreign currency business. The foreign exchange deposits referred to here refer to the following deposits expressed in foreign currencies:
Domestic and foreign interbank deposits. Non-interbank deposits outside China. Deposits of foreigners in China. Deposits from overseas Chinese and compatriots from Hong Kong, Macau and Taiwan. Deposits from foreign-invested enterprises. Transfer deposits made by foreign financial institutions to non-foreign invested enterprises. Other approved foreign exchange deposits. The foreign exchange remittances referred to here refer to inward remittances from overseas and remittances from domestic and foreign-invested enterprises, foreigners, overseas Chinese, and compatriots from Hong Kong, Macau and Taiwan. The import and export settlement referred to here refers to the import and export settlement of foreign-invested enterprises handled by foreign banks, branches of foreign banks, and joint venture banks, the export settlement of approved non-foreign-invested enterprises, and the import settlement under loans

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