The Associated Press, Wed 20 Mar 2002
China has taken a step toward opening its tightly controlled banking industry by allowing an overseas lender to offer foreign-currency services to Chinese customers. Chinese regulators have approved New York-based Citibank to become the first foreign-owned bank to provide foreign-currency accounts and loans to Chinese citizens and companies, the bank said Tuesday. (AFP PHOTO/LIU Jin ) SHANGHAI, China (AP) - China has taken a step toward opening its tightly controlled banking industry by allowing an overseas lender to offer foreign-currency services to Chinese customers.
Chinese regulators have approved New York-based Citibank to become the first foreign-owned bank to provide foreign-currency accounts and loans to Chinese citizens and companies, the bank said Tuesday.
Foreign-owned and even partly foreign-owned banks had been limited to providing foreign currency services to non-Chinese citizens and foreign companies.
Earlier this month, Xiamen International Bank became the first partly foreign-owned bank allowed to conduct local foreign currency business.
Foreign banks are still barred from currency conversion or offering loans and accounts denominated in China's currency, the yuan. As part of its entry into the World Trade Organization, China has promised to drop these restrictions within five years.
China has also promised to open the entire country to foreign banks. Overseas lenders are now restricted to two coastal cities, Shanghai and Shenzhen