China will further encourage and support the development of foreign-funded banks, said Liu Mingkang, Chairman of China Banking Regulatory Commission (CBRC).

Speaking Wednesday at the Eighth China International Fair for Investment and Trade in Xiamen, east China's Fujian province, Liu said foreign-funded financial organizations, especially foreign banks, have become an essential part of China's banking system.

They have brought new technological experience and active changes to China's financial circle, Liu acknowledged.

Foreign banks have established 162 branches in China, providing about 100 different types of financial services.

The foreign-funded banks have experienced booming business, said Liu. By the end of July their total assets were valued at 64.3 billion US dollars, he said.

China has fulfilled its commitment to the WTO and has supported the development of foreign-funded banks during the past three years, he said.

Foreign-funded banks have been permitted to open Renminbi services to Chinese companies in 13 cities since last December.

Beijing, Xiamen and the southwestern city of Kunmin will be opened for services this winter.

By the end of 2006, Liu added, all regional restrictions to the development of foreign-funded banks will be lifted. The banks will then be allowed to manage the individual Renminbi accounts of Chinese citizens.