China Eases Offshore Funding Limit for Foreign Banks

Bloomberg2021-05-27

(Bloomberg) -- China’s central bank raised the limit on how much smaller lenders and foreign banks operating in the country can borrow offshore, a move that will ease a funding shortfall and give a ...

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PanaCota
2021-05-27
PanaCota
Like and comment pls
K21
2021-05-27
K21
Pls like and comment
- QJ89:
  comment
Chengchang
2021-05-27
Chengchang
Lets go, leave me a like ty
- Gnoixed:
  pls reply back
- K21:
  TReply
- Chengchang:
  .

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Qualified banks will be given a 10 billion yuan initial quota, said the people.PBOC Governor Yi Gang on Monday met with delegates of foreign banks to discuss their business needs and their development in China. Easing offshore borrowings will be to boon to lenders including HSBC and JPMorgan Chase & Co. since their onshore operations have been handicapped by limited branch networks and access to deposits.PBOC didn’t immediately respond to a request seeking comment.China’s financial markets are a potent lure for the world’s biggest banks, with billions of profits on the line from investment banking to wealth management. HSBC, Standard Chartered Plc and Citigroup Inc. became the first foreign banks allowed to set up locally-incorporated subsidiaries in China around 2007. Beijing has continued to relax rules for foreign firms in the subsequent decade, including removing a $10 billion threshold to set up local units.Still, the banks face stiff competition from domestic lenders, especially in consumer finance, and in recruiting top talent, which has made expanding in China challenging. High capital requirement, limited funding and regulatory requirements have also proved onerous.Citigroup Inc. last month announced plans to exit its retail business in China and 12 other markets, saying it didn’t have the scale it needed to compete. 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