Citing anonymous sources, The Australian reported that the China Banking Regulatory Commission has already given its preliminary approval for the Australian bank to establish a branch in Shanghai.
Under the terms of the agreement, Westpac will be able to conduct a foreign currency business to begin with, once it has been formally signed off. Only after three years can the bank start a local currency operation, provided the business was profitable for a minimum of two of those three years, reported The Australian.
Currently, the Australian financial services provider has a regional presence in Singapore, Hong Kong and Jakarta, Indonesia. Furthermore, it also has a representative office in China’s capital, Beijing, which is limited to conducting liaison activities, with plans to establish a similar outpost in Mumbai, India in May 2007, The Australian said.
