The Hong Kong branches of 17 domestic banks will soon be allowed to handle yuan-denominated deposits, lending, exchange and wire transfer businesses, a Financial Supervisory Commission official said yesterday.
Macau branches will be excluded from the deregulation, Shiau Chang-ruey (蕭長瑞), deputy director-general of the Banking Bureau, told a press conference.
The commission yesterday revised its regulations governing bank branches in Hong Kong and Macau. Shiau said the commission would soon begin accepting applications from eligible banks to operate yuan-related business for Hong Kong residents or businesses registered there.
“It will probably take the commission only one week to review an application,” Shiau said.
Hong Kong branches of Taiwanese banks have been allowed to operate yuan-denominated business since 2004, however no local banks applied because of “politically sensitive wording” in the contracts, which has now been addressed and removed by the central bank, Shiau said.
The banks will only be allowed to offer the service to Hong Kong residents and businesses.
A regulatory hurdle imposed by Chinese regulators bars China-based Taiwanese businesses from taking out yuan-denominated loans from the Hong Kong branches of Taiwanese banks, he said.
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