The China Banking and Insurance Regulatory Commission revised regulations to allow foreign banks to simultaneously set up wholly owned subsidiaries and branches in the country, China Daily reported, citing a note on the regulator's website.

The regulator removed the total asset requirement for foreign banks to set up entities in China and to get regulatory approval for doing business in yuan. The revised rules also removed a restriction that limited foreign banks' scope of business to wholesale banking.

The regulator also said it will assess the interest-earning assets, working capital adequacy and liquidity ratios of a foreign bank's branches combined, rather than a singular foreign bank branch. Foreign bank branches will also be required to hold interest-earning assets that are worth at least 5% of their public debt. However, branches are not required to increase interest-earning assets if the outstanding volume of such assets reach 30% of their working capital.