Foreign banks can operate as branches in Britain but only if they hold minimal deposits and meet other safeguards under new Bank of England (BoE) rules partly aimed at making it easier for Chinese wholesale banks to set up shop in London. The new rules mark a formal change of tack by Britain whose regulators since the 2007-09 financial crisis have put pressure on all types of foreign bank branches to become subsidiaries that are more accountable to local supervisors. Branches, unlike subsidiaries, do not have the cost of maintaining their own buffer of capital and liquidity, instead relying on the parent's resources. The BoE's supervisory arm, the Prudential Regulation Authority (PRA), said in a statement on Friday that deposit-taking foreign banks that want to remain a branch must have less than £100 million ($163 million) in account balances and fewer than 5,000 customers. The new rules mean it will be easier for wholesale foreign banks from China and elsewhere, which cater to
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