RegionsChinaSingapore to Grant Licences to Two Chinese Banks

Singapore to Grant Licences to Two Chinese Banks

Singapore is to grant full banking licenses to two Chinese banks currently operating in the city-state, one of which will act as a clearing bank for renminbi (RMB) transactions according to the Ministry of Trade and Industry.

In a statement, the Singaporean government department said that the decision formed part of an agreement to enhance banking services cooperation with Beijing under the existing China-Singapore Free Trade Agreement. To reciprocate, Beijing will “expeditiously process” applications made by selected Singapore banks for setting up branches and sub-branches in China.

“Implementation details will be worked out by the relevant financial agencies in Singapore and China in due course,” added the ministry, which did not name the Chinese banks chosen to receive Qualifying Full Bank licences (QFBs). Chinese banks operating in Singapore include Bank of China, China Construction Bank and Industrial and Commercial Bank of China, which are all likely contenders.

Earlier this month it was announced that Singapore will consider awarding new QFBs as part of negotiations for free trade agreements. It also said foreign banks with a relatively large share of local deposits will have to incorporate locally.

Related Articles

China after the national congress – the outlook for the RMB

Capital Markets China after the national congress – the outlook for the RMB

7m Richard Hartung
China’s ‘unsustainable’ debt crisis is an investor's gold mine

China China’s ‘unsustainable’ debt crisis is an investor's gold mine

9m Victoria Beckett
Financial regulators crack down on individual misconduct

China Financial regulators crack down on individual misconduct

10m Graham Buck
China’s sovereign credit rating downgraded by Moody’s

China China’s sovereign credit rating downgraded by Moody’s

1y Graham Buck
De-risking and the decline in correspondent banking

Asia Pacific De-risking and the decline in correspondent banking

1y Henry Balani
London keeps top ranking for offshore RMB FX transactions

Banking London keeps top ranking for offshore RMB FX transactions

1y Graham Buck
IMF upbeat on global financial stability

China IMF upbeat on global financial stability

1y Graham Buck
Drought stress testing tool launched for banks

Banking Drought stress testing tool launched for banks

1y Graham Buck