Current Status And Future Of Foreign Banks In Xiamen In Terms Of RMB Business

By against China government's commitment to enter into WTO, Xiamen Foreign Banks had been permitted to apply for RMB business since December 2004. There were 7 foreign banks in Xiamen acquired RMB business licenses in 2005. But they had encountered several problems and obstacles after 1 year operation.The paper analyzed detailed problems and obstacles during 2005- 2006 which these foreign banks had faced. Some measures and actions are suggested in this paper for foreign banks in Xiamen to solve the problems and minimize the impact. The paper consists of 5 chapters.Chapter One outlined the foreign banks in Xiamen, introducing general information of 11 Xiamen Foreign Banks.Chapter Two briefed the operational environment of Xiamen Foreign Banks before 2005, including laws & regulation, Xiamen macro economic situation, customers, funding source and competitors. Purpose is to find out the necessity for Xiamen Foreign Banks to deal with RMB business.Chapter Three introduced the current status of Xiamen foreign banks in the field of RMB business during 2005- 2006 after 1 year operation. Obstacles and problems, included but not limited, few operation site, limited RMB funding source, insufficient experience in RMB business and mismatch computer system, etc. In addition, bright future prospects are analyzed, including, more relaxing outer environment and more expanded business.Chapter Four tried to suggest several measures and actions for foreign banks in Xiamen, including how to find more funding source, how to cooperate with local banks, how to expand business scope and how to adjust internal environment. Chapter Five took one of foreign banks in Xiamen as an example to illustrate the problems and obstacles when dealing with RMB business and how to solve and mitigate so as to expand the business.