Singapore to give full bank licence to 2 Chinese banks

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Singapore will grant full banking licenses to two Chinese banks currently operating in the city-state, of which one will act as a clearing bank for yuan transactions, Singapore's Ministry of Trade and Industry said on Friday.

It said the decision formed part of an agreement to enhance banking services cooperation with Beijing under the existing China-Singapore Free Trade Agreement.

Beijing will, in turn, "expeditiously process" all applications made by selected Singapore banks for the establishment of branches and sub-branches in China, the ministry said in a statement.

"Implementation details will be worked out by the relevant financial agencies in Singapore and China in due course," the ministry added.

Singapore did not name the Chinese banks that are likely to receive the so-called Qualifying Full Bank (QFBs) licence or give a time frame to allow recipients to open more branches in Singapore and accept retails deposits.

Chinese banks operating in Singapore include Bank of China, China Construction Bank and Industrial and Commercial Bank of China.