The Chinese banking regulator is planning to reduce the access barrier for foreign banks, as well as expand their business scope, The Paper reported.

The China Banking and Insurance Regulatory Commission has revised its management measures on foreign banks and is seeking public opinion on the issue.

According to the new rule, it is possible to set up a wholly foreign-funded bank and branches at the same time, or a Sino-foreign joint venture bank and branches at the same time.

Meanwhile, foreign banks are expected to be allowed to issue, cash and sell government bonds.

They are also allowed to absorb more deposits, as the regulator plans to lower the threshold for making a time deposit in a foreign bank.

Previously, Chinese citizens must have no less than one million yuan to make a time deposit. Now it will be lowered to 500,000 yuan.