DBS Bank (China) Ltd said yesterday it plans to begin renminbi retail banking in China soon after the National Day break, starting with a Shanghai Luwan sub-branch.
The bank, headquartered in Singapore, said its Luwan sub-branch got the final business license from the Shanghai administration of industry and commerce on Wednesday, and that it has applied for other branches and sub-branches.
"We have made full preparation for retail banking services and are seeking to provide better services to clients," said Teresa Lin, CEO of DBS Bank (China) Ltd.
The bank said clients would be categorized into two kinds. Treasury Priority Banking clients can enjoy professional wealth management services from customer managers.
The threshold for them is 400,000 yuan in total assets, including deposits, investment and mortgage loans. Clients with average monthly assets under 400,000 yuan in three months will be charged 200 yuan management fee per month. The threshold of other clients is 40,000 yuan in total assets, and the management fee will be 20 yuan per month if the total asset is below 40,000 yuan.
"We plan to charge clients no management fee until the end of 2008," said Stanley Ku, head of consumer banking in DBS Bank (China) Ltd.
DBS said it would launch two kinds of wealth management products: low-risk products similar to fixed-term deposits, and high-return products, including qualified domestic institutional investor (QDII) instruments.
DBS said they are still waiting for government approval for the QDII license. "We plan to launch QDII products, which will mainly invest in red-chip stocks," said Ku. "Our debit card is also expected to be launched at the beginning of next year."
But the bank said it has no plans to launch credit cards in China. "China's personal loan market is not as mature as in developed countries, so currently we are not considering launching collateral-free loans," said Ku.
The number of DBS outlets in China is expected to expand to over 40 within five years, from the current six. One outlet is expected to open in Shanghai this year while others will be opened in Beijing, Suzhou and Guangzhou, said Ku.
(China Daily September 28, 2007)
