Forex loan reform benefits local foreign banks
2/9/2003 16:34
Starting yesterday, foreign-funded banks in Shanghai were authorized
to handle foreign-exchange extending business by themselves without examined and
approved by foreign-exchange administrative department, the Shanghai Morning
Post reported today.
Shanghai is the first city nationwide to experimentally
make such reform after getting the go-ahead from the State Administration of
Foreign Exchange.
For a long time, all the Forex loan businesses of
foreign-funded banks should be examined and approved by the local foreign
exchange administrative department, including collecting Forex interest rates
and paying back principals.
The reform will benefit many enterprises from
home and abroad by helping them cut business costs and expand channel to use
foreign investment, said an industry analyst.
Nearly 30 percent of foreign
banks in China have launched business in Shanghai, or 54 foreign operations,
with extended Forex loans accounting for nearly 40 percent of the total Forex
loans in the city.
Wendy Zhang/ Shanghai Daily news
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