China Everbright gets local banking licence as APRA approves it as a foreign deposit-taking institution

APRA has approved China Everbright as a foreign deposit-taking institution, lifting offshore banks with branch status to 46.

An employee counts 100-yuan notes at a bank in Nantong in China's eastern Jiangsu province on July 23, 2018. China on July 23 rejected accusations by US President Donald Trump that it was manipulating the yuan to give its exporters an edge, saying Washington appeared "bent on provoking a trade war". / AFP PHOTO / - / China OUT

The banking regulator has approved China Everbright Bank as a foreign deposit-taking institution in Australia, bringing the number of offshore-based banks with branch status to 46.

Beijing-headquartered China Everbright joins Chinese counterparts including Bank of China, Bank of Communications, Agricultural Bank of China and China Merchants Bank on the Australian Prudential Regulation Authority’s authorised list of foreign banks.

APRA announced the approval in a statement today.

China Everbright was listed on the Shanghai Stock Exchange in 2010 and the Hong Kong Stock Exchange in 2013, according to its website. The company’s “go global” strategy has seen it ramp up its expansion outside of China.

Established in 1992, China Everbright was founded under the approval of the State Council and the People’s Bank of China.

APRA’s list of authorised deposit taking institutions also includes a separate classification of foreign subsidiary banks. That list includes Arab Bank Australia, Bank of China (Australia, Bank of Sydney, Citigroup, HSBC Bank Australia, ING Bank (Australia) and Rabobank Australia.

This year APRA has also awarded two digital banks restricted banking licences as it looks to make it easier for fintech companies to enter the sector.

Volt was the first to be granted the limited licence, while this week rival Xinja was also awarded one.

Both companies are using that as a first step as they seek a full licence next year.