Alfa Bank’s board of directors decided to open branches in Beijing and Shanghai. Registration applications will soon be submitted to the People’s Bank of China.
The entry into the Chinese market is due to the interests of clients who are actively focused on the development of monetary and commodity relations with China, the bank explained to RBC.
Before the Alfa Bank reports, only state-owned banks were talking about working in China: VTB has had a branch there since 2008, and Sberbank only plans to open one.
According to Kira Vinokurova, co-head of Pen & Paper’s sanctions law and compliance practice, the conditions for obtaining a license, in particular, are the stable profitability of the “parent” bank, the absence of violations, the presence of business experience international, an effective anti-cash and money laundering policy, the volume of assets is not less than 20 billion dollars
He also noted that the “home jurisdiction” of a bank planning to enter the Chinese market must have effective banking supervisors and cooperate with China’s regulators. According to her, the People’s Bank of China can examine the application for at least six months.
- In the first five months of 2023, the most popular currency among Russian businessmen was the Chinese yuan: about 70% of transfers of the total number of payments are sent to them.
Author:
Karina Pardaeva
Source: RB
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