Foreign banks aim higher in Shanghai
Updated: 2008-01-14 11:25
Picture this: Consumer banking revenue doubles; the number of new products grows to about 80; China's first onshore private banking is set up by a foreign institution; customer base more than doubles since local incorporation, and outlets in China balloon to 32.
That's just part of the growth picture generated in 2007 by Standard Chartered Bank, a major overseas player in China's banking sector.
The bank's achievement in Asia's rising giant during the past year is no doubt astounding, but more importantly, they represent the overall development of foreign banks operating in China.
The influx of foreign banks into Shanghai and their unprecedented growth during the past year have laid a solid foundation for the city to compete with global financial hubs and has greatly enhanced the city's expertise in a wide range of financial businesses.
One fundamental change that occurred in the city's banking sector in 2007 was the local incorporation of foreign banks following China's full opening of the financial sector at the end of 2006.
As of November 30, a total of 12 foreign-invested banks had obtained China Banking Regulatory Commission (CBRC) approval to establish local entities in Shanghai, accounting for the mainland's lion's share.
Seven of them - including Citigroup, HSBC, Standard Chartered Bank, Bank of East Asia, DBS, Hang Seng Bank and Mizuho Corporate Bank - have begun serving local customers with five more still in the preparatory process.
"It marks a new milestone for DBS China business. We are confident DBS China's products and services will meet mainland customers' growing financial demands," says Teresa S. Y. Lin, CEO of DBS Bank (China) Ltd.
More foreign institutions will likely join the push toward local incorporation, and more will register their China subsidiaries in Shanghai. A PricewaterhouseCoopers' survey found that 20 to 30 overseas institutions are interested in local incorporation though not all locally incorporated banks will have an interest in serving the retail market.
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