According to PBOC's regulation, a branch set up by a foreign bank in China shall place 30% of its capital fund as FX Interest-bearing Assets Deposits with a tenor of 6 months (or above) in a Chinese bank. SPDB can provide preferential interest rate, which is to be determined depending on the width and depth of bilateral business cooperation.
Tenor 6 months or above.
Interest rate To be negotiated by both sides (usually LIBOR minus certain bps)
Procedure (1) Both parties negotiate and settle down on the interest rat. (2) The foreign bank completes the FX Term Deposits Application Form and submits samples of authorized signature and personal stamps. (3) The foreign bank transfers the fund to a designated account. (4) SPDB issues a Certificate of FX Term Deposits.
RMB Interest-bearing Assets Deposits
According to PBOC's regulation, a foreign bank branch in China with RMB business license shall either use 30% of its RMB capital fund to invest in RMB Treasury Bonds or place 30% of its RMB capital fund as RMB Interest-bearing Assets Deposits with a tenor of 6 months (or above) in a Chinese bank. The interest rate is regulated by PBOC. AS to the foreign banks that place their RMB Interest-bearing Assets Deposits in SPDB, SPDB will reciprocate with other business cooperation opportunities.
Tenor 6 months or above.
Interest rate RMB time deposit rate.
Procedure (1) Both parties negotiate and settle down on the interest rate. (2) The foreign bank completes the RMB Term Deposits Application Form and submits samples of authorized signature(s) and personal stamp(s). (3) The foreign bank transfers the fund to a designated account. (4) SPDB issues Certificate of RMB Time Deposits.
FX Interest-bearing Assets Deposits