In accordance with the Regulations on Foreign-invested Financial Institutions, 30 percent of the working capital of overseas foreign banks must be placed with two or three Chinese banks in the form of interest-bearing assets.Foreign currency capital should be placed in the form of time deposits for a term of six months or longer; CNY capital should be in the form of CNY treasury bonds or a time deposit for a term of six months or longer.
1. The CMB’s branch agrees on an intent of interest-bearing assets placement/interbank deposit, and negotiates the interest rate with a foreign bank.
2. The handling bank files the business and the interest rate with its own Planning Finance Dept, or that at CMB’s headquarters based on its authority.
3. The branch concludes relevant agreements with the foreign bank with approval from Planning Finance Dept.
4. The foreign bank opens an account with the branch.
5. The foreign bank transfers the underlying interest-bearing assets/interbank deposit to the account with CMB.
6. The handling bank transfers the interest-bearing assets/interbank deposit back to the foreign bank, or renews the amount at maturity.
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.