由Klaus · Koehler

协议和改革在加入WTO以后

当中国会加入WTO，组织在国家要求中国遵照特别义务关于银行事务。 中国在五年之内必须同意对外国银行完全地打开他们的银行区段在会加入WTO以后从2001年- 2006年。 中国具体地同意，那它将允许外国银行完成外币事务，不用任何市场通入或全国治疗局限和做外币生意与外国被投资的公司和外国个体，以某些地理制约依据。 二年在加入WTO以后，外国银行应该能做本国货币生意与中国公司受特别地理局限支配和在中国同意放松所有地理制约的五年之内。 中国也同意外国银行允许提供财政谎话服务，在他们的中方的同时。

然而，中国是慢的在实施协议。 在2002中国人民银行发布了治理外国被资助的银行的章程与规则一起与WTO承诺同步，但PBOC是极端谨慎的在打开他们的银行区段。 这个情况使它难为了外国银行能进入市场和扩大他们的场地。 要举例子，允许的PBOC外国资助银行只打开一个分支每12个月。 当然这导致压力国家例如美国、澳洲、加拿大日本和几个欧洲国家。 Therefore the PBOC announced in December 2003 that foreign banks were permitted to conduct domestic currency business with Chinese companies and the working capital requirements for foreign banks were reduced.

In July 2004 capital requirements for foreign banks in other categories were reduced and the China Banking Regulatory Commission (CBRC) issued the Implementation Rules for the Administrative Regulations on Foreign-Invested Financial Institutions, which removed among other things the restriction to open only one branch every 12 months. In December 2004 the CBRC allowed foreign banks to opened branches in an additional five cities for and to process local currency business, including Xian and Shenyang. This allowed them to be ahead in the commitments towards the WTO. Foreign banks were now allowed to conduct local currency business in 18 Chinese cities.

Up to the end of May 2006, 71 foreign banks established 197 branches in China. Currently they are allowed to conduct local currency business in 25 Chinese cities. After a slow start, China has only until the 11th of December 2006 to fulfill the WTO agreements at which point China will have to open the banking sector for all foreign banks in every region of the country.

As it stands however, any foreign bank looking to gain a foothold in a city must open a representative office, which can offer only advisory, non-profit making services, in the city and maintain it for two years.

Only then can it apply to open a branch office and actually start doing business. While the representative office rule has been lifted in western China to encourage investment and the government has indicated this could soon extend nationwide, branches have experienced further delays when applying for local currency trading licenses. A minimum capital requirement of USD 62 million must also be met to open a full service branch.

Advantages for Foreign Banks

Once China opens the banking market to foreign banks, those already established on the market have an advantage. This can also be seen with the large number of representative offices that have been opened in the last few years by foreign banks.

Retail Banking

It is said that the best way for foreign banks to enter the China market is through retail banking, as the local Chinese banks are generally weaker in this sector. In addition, it is expected that much of the future growth and profitability will come from retail, small-business lending and fee-based businesses. Generally speaking, foreign banks have better skills and are more experienced in this area than Chinese banks, which concentrate more in the traditional areas of banking such as deposits and lending. Many of the Chinese banks do not invest time and manpower in their customer relations. Considering 1.3 billion Chinese people have approximately a total of USD1.65 trillion on saving accounts, this is a key mistake. Many local banks do not know their affluent clients and this presents a chance for foreign banks who have an immediate advantage with their experience.

Because affluent customers are highly concentrated geographically, foreign banks only have to provide a small number of branches in the big cities to target these customers. Surveys show that the demand for better services is very high, and customers are unsatisfied with the services of local Chinese banks. Therefore customers would rather go to a foreign bank even if they have to pay higher fees or interest rates.

Credit Card

A hot sector in the bank market is the credit card market. It is expected that banks will get soon the permission to issue their own credit cards, which will give them access to a market, which is worth USD 40 billion. Credit cards are more and more in demand in the Chinese culture, but local banks lack of experience. In addition, with credit cards from local banks, customers are only able to pay in renminbi and no other currencies.

But what is the best way to access the market? The best and easiest way for foreign banks to enter this sector is by joining a partnership with a local Chinese bank. On one hand, Chinese customers prefer the service of a foreign bank but on the other hand, 66 percent of card holders choose to pay their bills cash at bank branches or pay them at the automated teller machines. Chinese banks have an existing network of branches spread over the country with the technical facilities. Figures show, that the most effective way to acquire new customers for credit cards is to visit companies and provide incentives for staff. Almost half of all credit card holders sign up if a bank representative visits their workplace and if there is an already established corporate relationship; larger local Chinese banks have an additional advantage in this area.

It is therefore easier for foreign banks to become a partner of a local bank and to benefit from the existing network. Currently, foreign investors are only allowed to have a stake up to 20 percent in a local bank, however if more than one foreign bank or investor is involved, a total of 25 percent can not be exceeded. This regulation is expected to change with ongoing reforms.

Outlook for the Future

In general, China’s banking system does have a prosperous outlook. With the WTO pushing for the opening up of the banking industry, China is implementing regulations for foreign banks to access slowly all areas. This means for local banks in order to stay competitive, they have to “clean up” their long term problems as many are heavily loaded with non-performing loans. Recognising the problem China already decreased slowly the loans since opening their bank sector step by step. Local banks are getting better and better in setting their risk management, and already are becoming more competitive.

If you require assistance with the above subject, please contact us at info@klako.com with your detailed questions.

Klaus Koehler, Managing Director, Klako Group