The China Banking Regulatory Commission (CBRC) on Thursday began to solicit public opinion on the management of administrative licensing items for foreign-funded banks.
The proposed management strategy embodies the ideas of expanding opening-up, streamlining administration, delegating power and strengthening prudential supervision.
According to the CBRC website, the new regulation contains three major changes.
Conditions, procedures and material foreign-funded banks need in order to set up banks in China or buy stakes in domestic banks are described in the new document, providing legal basis for foreign-funded banks to make equity investments in China's banking sector.
The new regulation eliminates approval process for services including overseas financial management services on behalf of clients and securities investment fund custody.
The new regulation also unifies market entrance standards for domestic and foreign-funded banks.
The National Financial Work Conference, held in July of this year, decided that China would further open up its financial market at a steady pace, to promote internationalization of the yuan and capital account convertibility.
The CBRC said it will actively work toward amendment of existing laws and regulatory systems to encourage the opening-up of domestic banking sector.