Banking News
- Survey: Yes to foreign banks
Date: 5-Feb-2007 Sources: (Xinhua Online)
The majority of respondents to an online survey said they will move their money to foreign banks when foreign-owned retail banking begins this year.
According to the survey, conducted by China Daily's website, www.chinadaily.com.cn, more than 57 percent of the 1,329 respondents said they will move their money from domestic banks to foreign ones.
Near 34 percent of the respondents said they will not move their funds.
About 9 percent had no opinion.
In November a new administrative rule was issued allowing foreign banks to conduct renminbi retail business after they register as local entities.
At least a dozen foreign banks have filed as local companies so far after nine banks were given the nod in December to begin local incorporation.
It is expected that some foreign banks will begin renminbi retail banking as early as March.
Citibank, HSBC, Standard Chartered and Bank of East Asia have been allowed to offer term deposits with a minimum of 1 million yuan since December 12.
A number of wealthy Chinese customers have already opened renminbi accounts with the million-yuan threshold.
Statistics from the central bank's Shanghai headquarters show five foreign banks in Shanghai took in 298 million yuan in deposits in only 20 days in December.
'If I had more than 1 million yuan, without doubt, I would immediately move it from local banks to foreign banks such as Bank of East Asia and Citibank, just because they provide good service,' said Zach, a respondent to the China Daily survey.
Like Zach, many netizens surveyed expect better service from foreign banks, which have long banking experience and extensive global networks.
'Why not (move money to a foreign bank)? It is a good option. Foreign banks may offer better services,' another online respondent, said.
Xing Xing agreed that the service of foreign banks is better than Chinese banks and said that foreign banks are safer.
Some others from the online community said they will try foreign banks, as they are unsatisfied with local banks.
'I hate the service offered by local banks. Foreign banks might be better or worse...but I'd love to have a try,' Mandy said.
'I'm fed up with long lines and unknown waiting time at the Chinese banks. Their service is far from satisfactory,' said Chen Chen.
'I will transfer all my money (though a very small amount) to a foreign bank in Beijing if they don't have a high minimum deposit,' Chen Chen said.
The high threshold is a concern for ordinary clients who would like to move to foreign banks.
Although many foreign banks have said that they will be open to all clients, they are thought to be targeting high-end customers who will generate higher profits.
And the general practice of foreign banks collecting fees on smaller accounts will make it difficult to win Chinese customers.
A number of survey respondents said they trusted domestic banks and would definitely not move their money.
'My answer is absolutely no. I trust domestic banks more than foreign banks,' Yingying said.
'Some Chinese banks are not bad. I trust some of them, like China Merchants Bank,' one netizen said, adding that the bank's service is good and friendly, but the problem is its few outlets.
Other respondents had a wait-and-see att'At first, I will not do that (shift to a foreign bank). Although the foreign banks enjoy a good reputation for their service, I am not so familiar with them,' Fiona said.
Another respondent said 'why bother to do that', until foreign banks prove they can do better than Chinese banks.
And some respondents questioned the safety of foreign banks.
'Are foreign banks safer than local banks? If so, I would like to deposit my money in foreign banks. But what will happen if foreign banks are ruined?' one respondent said.
That is why China's regulators require foreign banks doing renminbi retail business to register locally.
A few surveyed believed that the market opening to foreign banks is irrelevant to them.
'It makes no difference to ordinary clients. It could mean something for big depositors, companies and the rich,' Tao said.
'Forget about it.'
itude.
Sponsor Results:
