CHINA'S banking regulator said yesterday it would continue to push for the local incorporation of foreign banks.
The China Banking Regulatory Commission also urged locally incorporated foreign banks to build a so-called Chinese Wall separating themselves from parent banks. They should also set up independent risk control, accounting and IT systems, a statement on its Website said.
The CBRC will "pay close attention to the branches and subsidiary institutions of the subprime-affected foreign banks, and take more prudent supervision measures," said the statement.
Foreign banks have been steadily increasing their assets, profits, deposits and loans. Outstanding non-performing loans were reduced by US$45 million year on year, said the statement.
Twenty one of the banks - including the Standard Chartered Bank, the Bank of East Asia and the Hong Kong and Shanghai Banking Corp - have been approved to turn their Chinese mainland branches into locally incorporated banks registered on the mainland by last year.