An elderly man walks past an advert for Bank of America in Shanghai. [Photo: AFP]

The Chinese government will approve foreign-funded banks offering Renminbi business for Chinese citizens within three months of new regulations taking effect on Dec. 11.
  
An official with the China Banking Regulatory Commission (CBRC) made the remark Tuesday in response to questions from Xinhua.
  
On Dec. 11, new regulations on the administration of foreign-funded banks will take effect, marking the full opening of the country's banking sector to foreign competitors.
  
Under the regulations, China will allow foreign-funded banks to conduct Renminbi business for Chinese citizens in line with its commitments to the World Trade Organization (WTO).
  
The government would also remove regional and other restrictions on foreign-funded banks, giving them the same treatment as Chinese banks.
  
The regulations state that Chinese branches of foreign banks remain banned from engaging in Renminbi services with Chinese citizens unless an individual, with the approval of the banking regulatory body, makes a fixed minimum deposit of one million yuan (127,000 U.S. dollars).
  
It may take up to a month for Chinese branches of foreign banks to receive approval to accept deposits exceeding one million yuan from Chinese citizens, the official said.
  
Foreign-funded banks will enjoy the same treatment with domestic banks when acting as insurance agencies, and the government sets the same standards for both domestic and foreign banks in terms of registered capital, operating funds, information disclosure and affiliated deals, the official said.
  
A minimum registered capital one billion yuan and an operating fund of at least 100 million yuan was required for foreign-funded and joint-venture banks, the same as Chinese banks, the official said.
  
The government would encourage and guide foreign banks to transform their branches into or set up incorporated banks registered in China, the official said.
  
Since joining the World Trade Organization in 2001, China has seen the number of foreign-funded banks growing and their business scope expanding.
  
China has fully opened its foreign exchange business to foreign-funded banks and allowed 111 foreign financial institutions to offer Renminbi services for Chinese and foreign enterprises in 25 cities.
  
The CBRC data shows the assets of foreign-funded banks in China totaled 105.1 billion U.S. dollars in September, accounting for 1.9 percent of all banking institutions in the country.