Foreign Banks Makes Headway in Jiangsu
Foreign-financed banks in Jiangsu province, such as Standard Chartered, Hang Seng, HSBC, DBS, and the Japanese Mizuho Financial Group, Inc., etc., have all submitted applications to Banking Supervisory Commission for incorporation of legal representative organs, a sing that they are heading for RMB business services in Jiangsu Province.
At present, there have been 9 foreign banks in Jiangsu, of which 4 are located in Suzhou, and more are ready to land in Jiangsu market by setting up branches in Nanjing and Suzhou, such as Southeast Bank, Korean Woori Bank, and some of the SME banks.
Other foreign banks have informed the Provincial Banking Supervisory Commission of their intentions of setting branches and offices in Jiangsu. Nagoya Bank intends to set up a branch in Nantong, and Citigroup plans to establish a Suzhou branch to better serve customer groups in these locations.
The foreign banks are all busy preparing for RMB services by deploying their networks and ATMs in cities of Jiangsu. HSBC and Sumitomo Mitsui Bank branches in Suzhou even applied to set up sub-branches within the same city. HSBC Suzhou Branch has already completed preparations for sub-branch at Xuanmiaoguan Square, while service offices of Sumitomo Mitsui Bank have obtained official approval, and 3 more ATMs will be added by HSBC service network.
Standard Chartered Nanjing Branch and Sumitomo Mitsui Bank Nanjing Branch, with the approval of Banking Supervisory Commission, are now qualified to open fixed-term RMB deposit of no less than 1 million each amount to citizens within China. Nanjing Branches of Standard Chartered and Hang Seng were approved last year to carry out corporate RMB banking services to foreign-invested enterprises.
The foreign bank branches are constantly infused with financial input from parent corporations. Nanjing branches of Standard Chartered and Hang Seng, for instance, were provided each with additional 200 million RMB operating capital, while Sumitomo Mitsui Bank HQ is ready to allocate 300 million RMB to its branch once the RMB corporate business is approved.
Jan. 6, 2007