Foreign Banks
Since the inception of the "open door policy", a number of foreign banks have been permitted to open their doors in major cities in China. However, these are largely representative branches, with only a few being permitted to carry out branch functions in Shanghai and Shenzhen. Their participation in China's financial system has been limited, but as China starts to borrow more from abroad, their role may become greater in the future.
When first permitted in the mid-1980s, foreign banks were restricted to designated cities and could deal only with transactions by foreign companies in China. After those restrictions were loosened following China’s accession to the World Trade Organization in 2001, some foreign banks have been allowed to provide services to local residents and businesses. In 2004 there were some 70 foreign banks with more than 150 branches in China. In 2007 a limited number of foreign banks were allowed to issue debit cards in China (and Bank of East Asia was allowed to issue a credit card). This made banking with a foreign bank more convenient, as money in accounts could be accessed at ATMs like customers of local banks could. In 2009 this number grew to six, but only two of these are not tied to Hong Kong.
Read more about this topic: Chinese Financial System
Famous quotes containing the words foreign and/or banks:
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—Henry David Thoreau (1817–1862)
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—Will Durant (1885–1981)