Upon public consultation, the China Banking Regulatory Commission ("CBRC") recently revised the Implementation Measures on the Administrative Licensing of Foreign-invested Financial Institutions, with the name changed to the Implementation Measures on the Administrative Licensing of Foreign-invested Banks (the "Measures"). The Measures were formally released and came into force on September 11.
The Measures significantly simplify the administrative licensing process and delete several administrative licensing items that have been cancelled. For the cancelled items, the Measures require implementation of a reporting system and strengthening of the dynamic prudent supervision during or after an event. In addition, the Measures further unify the market access standards for both Chinese-invested and foreign-invested banks by removing the provision that a foreign-invested bank can only apply for the establishment of one sub-branch in one city once and removing the minimum operating capital requirements for sub-branches.