Chinanews, Beijing, Mar. 23 – When transferring overseas assets to China, the branch offices of foreign banks or their legal entities in China are required to report their transfer to the China Banking Regulatory Commission (CBRC) and get its approval. Foreign banks are not allowed to divert their high-risk financial assets or assets from unlawful deals to China, according to a statement in the "Report on the Opening-up of China's Banking Industry" issued by CBRC.

 

Generally speaking, China's banking industry has set up an open pattern centered in development of the Yangtze River Delta region, the Pearl River Delta region and the Circum-Bohai Ring area, while expanding its business to neighboring regions.

 

While the opening-up of the banking industry has brought positive impacts on China's financial system, it has also created some risks. China has paid close attention to the possible risks emerging during the process. By the end of last December, the bad assets rate of foreign banks in China was 0.7%, said CBRC in the statement.

 

China will take multi-level risk-prevention measures to safeguard the security of Chinese banking industry. To foreign banks that want to operate business in China, China requires that their parent companies should unconditionally undertake all the financial debts incurred by their branch offices in China.