Foreign banks still marginal but make progress
After years of expanding their networks, foreign banks in China remain marginal players in retail and consumer spaces. Still, they are slowly building market share and expanding their presence in the financial services sector and among their corporate clients.
China’s regulators are encouraging them. A series of regulatory announcements last year opened the door for more international activity like trade and crossborder financing at which global banks excel.
In a report in January, global accountancy firm EY noted that foreign banks are generally optimistic about the prospects for the China market but worry about complex regulations that combine with capital and liquidity constraints to make their growth difficult. (Photo 1)