China to permit foreign banks to borrow $24 billion this year

BEIJING: China's National Development and Reform Commission ( NDRC), the country's top economic planner, said foreign-funded banks are allowed to borrow as much as $ 24 billion of medium and long-term external debt this year.

The approval of foreign banks' issuing external debts aims to open up China's banking sector to the outside world and let foreign banks play an active role in attracting overseas investment to help Chinese enterprises to go global, the NDRC said.

HSBC, Deutsche Bank, JPMorgan Chase, Citibank, Sumitomo Mitsui Banking Corporation and the Bank of East Asia are chosen to carry out the pilot scheme to issue external debts.

According to the NDRC, foreign banks must report to the commission about the size, tenure and overseas creditors of yuan-denominated funds whose terms are one year or above.