960428

China to open up to foreign banks

BEIJING: China will open its banking system wider to foreign financial institutions over the next five years, aiming to eventually allow foreign banks to deal in yuan, the Financial Daily Society Weekly said on Sunday.

"Efforts will be made to create conditions for foreign banks to deal in renminbi and to gradually apply 'national treatment' to foreign financial institutions," it quoted Yin Jieyan, vice president of the People's Bank of China, the central bank, as saying.

Yin said reforms to open China's financial market would be introduced over the next five years, but gave no date for when foreign banks would be able to begin yuan operations.

By the end of 1995, foreign financial institutions had opened 137 operational offices, including 117 foreign bank branches, and 519 representative offices, Yin told a meeting of the Asia-Pacific Bankers' Club in Beijing.-Reuter