OVERSEAS banks in Shanghai made 6.39 billion yuan (US$832 million) of new loans in April, almost triple the amount of the year-earlier month, the Xinhua news agency reported, citing a report from central bank's Shanghai branch.

HSBC Holdings Plc, Citigroup In, Standard Chartered Plc and Bank of East Asia Ltd, which started offering local-currency services for Chinese residents last month, made 4.33 billion yuan of loans last month, two-thirds of the total increase among foreign banks.

Overseas banks operating in China's mainland must incorporate locally to offer bank cards and mass-market banking services in yuan, according to rules that took effect on December 11, when the central government removed restrictions on overseas banks under commitments made to join the World Trade Organization in 2001.

Overseas banks control about 1.8 percent of China's US$5.1 trillion of banking assets. As of December 31, 74 overseas banks operated 279 outlets in 25 Chinese cities.