Return to Article Details Measuring the Commitments on Financial Services Trade Liberalization: Core Business of Commercial Bank in Developing Economies
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Measuring the Commitments on Financial Services Trade Liberalization: Core Business of Commercial Bank in Developing Economies

Ke ZHANG , Tsing Hua University

I. Introduction

This paper is the basis of studying the impact of financial service trade negotiation under the General agreement on Trade and Services (GATS) on the banking sector in developing countries. To test the impact, the first step is measuring the commitments in financial service trade negotiation. This paper measured members’ commitments in the FIFTH PROTOCOL TO GATS. The focus of this paper is the core business of commercial banks, including deposit and credit services, whose definition is specified in section III.

II. The Efforts to measure the Commitments in previous literatures

Since the end of Uruguay round negotiation, there are a few literatures trying to assess the outcomes of service trade negotiation including that of financial service. B.Hoekman (1995)[1] made the tentative first step to measure the commitments on financial service trade[2] liberalization of all WTO members at the end of Uruguay round negotiation. As he said, he “guesstimated” the liberalization degree reflected by the commitments because of lack of statistical support. He quantified the commitments in two dimensions. One is the relative restrictiveness of different measures, which is classified into three categories, “unbound”, “none” and “bound”[3]. The other is the relative importance of the modes of supply in specific sectors .Value of 0, 0.5 and 1 were attached to “unbound”, “bound” and “none” respectively to scale the restrictiveness of commitments. For each of the four modes, a weight was given as shown in table 1, “reflecting a subjective assessment of the relative importance of the modes.”

Table 1: B. Hoekman (1995)’s mode weights

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 

A. Mattoo (1999)[4] quantified the commitments on financial services trade liberalization of all developing members[5] of WTO as part of the conclusion of the negotiation in 1997. He argued that “the limitation maybe on coverage or in the form of a restrictive measure (which can be one or more of the six types of restrictions listed in Article XVI of GATS). Many members impose restrictions on the legal form of commercial presence … . It is assumed that such restrictions are less burdensome than those which limit entry or the extent of foreign equity participation.” With respect to mode 3, it adopted a slightly sophisticated approach, which was “first identifying the most restrictive measure specified and then applying a value based on an assessment of its restrictiveness.” “The presence of any of the following limitations led to the indicated value being attached (regardless of whether other less restrictive measures were also applied)”. See table 2.

Table 2: Mattoo’s Scoring criterion

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 

With respect to mode 1 and 2[6], he simply attached a value of 0.5 in all case of restrictions on the first two modes. He argued that “in the case of the first two modes, restrictions often take the form of excluding certain sub-sectors from the scope of the commitment”. “It’s difficult to judge the economic significance of these exclusions”. Finally, to the most definite entries of “unbound” and “none”, values of zero and one are attached respectively with respect to each mode.

To distinguish the different importance of modes of supply, he figured out a “modal weights in banking” shown in table 3, which were based on US trade statistics and estimated by the author[7].

Table 3: Mattoo (1999)’s mode weights

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75

N.Valckx[8] modified A.Mattoo’s measures in the way that divided the entries of A.Matto’s scoring criteria in detail. See table 4.


Table 4: N.Valckx’s Limitations Scores

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 

In order to aggregate a member’s sector and mode scores, N.Valckx (2002) employed principal component analysis (PCA) constructing three main indicators for members’ commitments. A.Kireyev (2002)[9] calculated the scores of commitments on financial service trade liberalization based on table 4. But he calculated arithmetic mean of scores of modes as aggregate scores of members instead of employing PCA.

It’s easy to find that previous studies have made great progress on measuring financial service trade commitments. But there are still some questions remaining. First, regarding relative restrictiveness of different commitments, a series of measures were listed in a sequence of limitation degree and judged on a scale of 0 to 1. However, most of those measures are not mutually exclusive. Many of those are often inscribed in a member’s schedule simultaneously. In such case, how shall we choice the scores? For example, in table 4, there are two restrictive measures, “voting or ownership < 50%” and “limitation on legal form”, attached scores of 0.5 and 0.75 respectively. If one member committed both of them and another member only took one measure, “voting or ownership < 50%”, both of them therefore was scored 0.5. It’s irrational to say the former is as restrictive as the latter. Another question is how to treat the different measures committed in different sub-sectors in a member’s schedule because even the smallest sector category, such as lending, in previous studies, also covers several sub-sectors.

Second, regarding the modes’ weights, two types of methods are applied. One is estimating the weights subjectively based on experiences, common sense or American statistics. Another is calculating the weights statistically through principal component analysis. For the former, its pitfall is obviously. Subjective estimation may lead to difference between estimates and reality and variance between different researchers. Although American statistics can provide an objective statistical basis, different developing levels among members reduce its reference value greatly. For the latter, PCA or factor analysis do provide an alternative way to aggregate the original scores. But careful exam should be made case by case because statistically constructed factors are often too abstract to explain or understand.

III. The original data for quantifying

This paper tries to measure the commitments on core business of commercial banks of WTO developing members. These commitments came from the FIFTH PROTOCOL TO THE GENERAL AGREEMENT ON TRADE IN SERVICES,[10] which, entering into force in 1999, is the outcome of financial service trade negotiation among WTO members under GATS. However, commitments of members, who didn’t participate in the negotiation in 1997, came from the SECOND PROTOCOL TO THE GENERAL AGREEMENT OF TRADE IN SERVICES, entering into force in 1996. For those members who acceded to WTO after 1999, their commitments came from their protocol of accession.

All of the developing members of WTO are included in this study. However, there isn’t a definition of developing countries in WTO or other international organizations. WTO has the definition of least developed countries and World Bank has an academic standard to distinguish developed and developing countries, which is often used in its working papers. This paper, based on both of these definitions, excepting the least developed members and developed members, covers all the remaining 90 members.

a. Definition of core services of commercial bank

This paper doesn’t study all the financial services but the core business of commercial banks, which are deposit and credit services. According to article 5(v) and (vi) in ANNEX ON FINANCIAL SERVICES TO GATS, deposit service is “acceptance of deposits and other repayable funds from the public” and credit service is “lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction”.

According to GUIDELINES FOR THE SCHEDULE OF SPECIFIC COMMITMENTS UNDER GATS, such general definition can be classified in a specific and standard way which is the UN provisional central product classification[11]. See table 5

Table 3.1 also shows the sectoral scope in this study, which includes the sub-sectors of 5-digit code of UN CPCprov: 81115, 81116, 81119, 81131, 81132, 81133, 81139[12]. Some members’ commitments cover all of them, but some only cover part of them. The coverage of all 90 developing members’ commitments in core business of commercial bank is listed in table A-1 in annex, which shows that 19 developing members’ commitments don’t cover any sub-sector in table 5. So these members’ indexes of trade liberalization are all 0. And in section IV, these members are not discussed again.

Table 5: Definition of core business of commercial bank

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 

IV. Methodology

            WTO members’ specific commitments schedules imposed a series of restrictive measures on core business of commercial banking which depressed trade liberalization. To measure trade liberalization is to measure the degree of restrictiveness of measures, which have a negative impact on trade liberalization. However, the difficulty is one member’s specific commitments schedule usually stipulated a number of measures and members’ measures are different from each other. Comparing members’ commitments in general according to a uniform scoring criterion will lead to loss of information in commitments. But if the uniform scoring criterion were abandoned, the measurement would be random because no specific statistical data can support such measurement so far. In other words, because subject estimation is the only way to measure commitments, developing an uniform scoring criterion is the key point to make measurement rational. But it’s hard to apply one standard to compare all kinds of measures.

             To make it applicable to compare all kinds of measures and, at the same time, keep the uniformity of scoring criterion, this paper employs a structured analysis framework. First, all the measures included in 90 members’ commitments were classified into different categories. Second, weights were assigned to each category. Third, only measures in the same category were compared and scored based on scoring criterion which is uniform inside a category but varies between different categories. In other words, each category has its own uniform scoring criterion.

a. Weights of sub-sectors

As discussed in section III, some members’ commitments cover all the seven sub-sectors, but some not. The coverage of commitment may have an important impact on trade liberalization. In fact, only a part of categories of measures have tight relation with it. For those categories, the coverage must be taken into account when measures are quantified. The criterion is as follows,

If a member’s commitments didn’t cover a sub-sector, its measure score in this sub-sector is 0.

For those sub-sectors covered in a member’s commitments, it’s assumed that sub-sector’s market scale decides its importance in the core business of commercial bank. Even taking the same measure in two sub-sectors with different market scale, the impact on the general trade condition is different. So an estimation of relative market scale of all sub-sectors is necessary, which was made and represented by weights, see table 6

Table 6: Sub-sectors’ weights

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 

b. Classification of restrictive measures

As discussed above, subject estimation was made to quantify the restrictive measures. Classification was the first step. Measures classified into the same category have the most similar attributes so the comparability increased. Only comparing measures in the same category make it easy to focus on the difference between degrees of restrictiveness of measures, excluding the noise of other difference. Therefore the subject scoring based on common sense only reflects the degree of restrictiveness of measures, which contributed to rational scoring.

This paper classified all the measures into six categories, listed in table 7, which are institution establishing limitation, segmental market limitation, ownership limitation, scale limitation, employment limitation and subsidy & tax treatment limitation. Because most of the commitments of members are based on GATS-16(2), the six categories cover the definition of sub-paragraph a - f in GATS-16(2). The corresponding relation is shown in table 7.

Table 7: Classification of restrictive measures

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 

Obviously the six categories have different degree of impact on free trade. The first one decides directly whether a member’s bank can operate in another member’s market. Some banks may be forbidden completely to access a member’s market by such measures. The second one can only block a part of domestic market. The others can’t stop foreign banks accessing but just restrict the control rights and competition through affecting their equity structure, scale, employment structure, profitability, etc. According to the degree of restrictiveness, each measure was assigned a weight, also listed in table 7. The score of a measure multiplies by its weight is the measurement of its restrictiveness.

The last category, subsidy & tax treatment limitation is the only restrictive measure of national treatment. Because of the provision of GATS-20(2), the measures in column of national treatment of member’s schedule are relatively few, some of which can still be merged to market access column. Most of the remaining ones belong to subsidy & tax treatment limitation, with a few exceptions omitted,

c. General criterion for quantifying

            Although scoring criterion varies across categories, there is a general criterion, as follows, applied to all the categories.

The indicator of degree of trade liberalization is index of trade liberalization which range from 0 to 10. A member’s index of trade liberalization is a weighted sum of scores of measures of all six categories. The score of measure also ranges from 0 to 10. If the measure is “unbound”, score is 0. If the measure is “none”, score is 10.

“Authorization” is a measure used by most members. Sometimes it’s used together with another measure, sometimes not. For the former case, the authorized trade condition is also restricted by another measure. For the latter case, the authorized trade condition is completely free. In order to treat with both of the two cases according to a uniform criterion, the quantification went in two steps. First, the authorized trade condition was scored. Second, the authorization measure was scaled by a multiplier, called authorization coefficient, which multiplied the score in first step. The product was the final score. If the authorization based on discretionary judge or economic demand test, the authorization coefficient is 0.3 and if based on specific condition or qualification, it’s 0.35. So if there isn’t other measure accompanying, the final score of authorization measure is 3 or 3.5.

Similar to “authorization”, “grandfather provision” was also scaled by a multiplier, 1.2, called grandfather coefficient.

The same method was applied to “rollback provision” which usually stipulated to cancel some measures in future. For such provision, the future trade condition after cancelling some measures was scored first. Then the score was multiplied by “time coefficient”. The time coefficient is 0.9 if the rollback provision stipulated to cancel measures in five years after the commitments entering into force. If it’s in more than five years to cancel measures, the time coefficient is 0.8.

Members’ commitments may not cover all of the six categories of measures. According to GATS-16(2), members can not take any restrictive measures not listed in their schedules. So if a member’s commitments did not cover a category of measures, such category is scored 10.

Members’ commitments also do not cover all the sub-sectors. But GATS can not bind sectors or sub-sectors not listed in members’ schedules. Those uncovered sub-sectors were scored 0.

              So generally, a member’s index of trade liberalization is calculated in the following equation.

                                                                                                           (1)

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure

d. Scoring criteria for institution establishing limitation

Institution establishing limitation is the first and most important barrier for banking service trade. Such kind of measures can keep foreign banks out of domestic market completely. Otherwise if it had established an institution in domestic market, a foreign bank acquired the platform to further expand or penetrate. Measures in this category are mainly authorization, qualification for entering, legal form, etc.

Members used a number of terminologies to call the legal form of foreign invested institutions, such as joint venture banks, subsidiaries, branches, etc. This paper only distinguishes two legal forms, joint venture banks and branches. The former, whose foreign equity share varies from minority to 100%, includes all the non-branch institutions except representative office.

Usually, measures were taken to restrict one of the two type institutions, joint venture banks and branches. And the one restricting joint venture banks may not restrict branches. So this category’s measures were classified into two sub-categories according to the type of institutions they restrict.  The two sub-category measures are scored respectively and their weighted sum is the final score of this category, called index of institution establishing freedom.The scoring criterion is shown in table 8.

Table 8: scoring criteria for institution setting

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 

According to the criterion in table 8, members’ measures were scored and reported in table A-2 in Annex. EL Salvador, whose measure was “unbound”, and those members, not taking measures in this category, were excluded from table A-2, who are Albania, Argentina, Armenia, Bolivia, Croatia, Estonia, Gabon, Georgia, Guyana, Israel, Jamaica, Kyrgyz, Latvia, Lithuania, Mongolia, Panama, Paraguay, Qatar, Romania, South Africa, Zimbabwe. They are scored 10 except for EL Salvador scored 0.

e.   Scoring criteria for segmental market limitation

Another main barrier for free banking service trade is to segment domestic market and keep some segmental markets close to foreign banks although general commitments of market access were made. The provision of such measures is usually composed of two parts. The first part is how to segment domestic market and the second part is how to restrict the segmental market access. The second part shows degree of restrictiveness of measures but the first part shows coverage of measures. Both of them are important to quantify this category especially the first part. Because the same measures applied to two segmental markets with different scales will affect the trade liberalization in different degrees.

Members often segmented market from three dimensions which are citizenship of customers, currency type and legal form of providers. Weights, as table 9 shows, were employed in this paper to distinguish the relative importance of different segmental markets based on their scales.

Table 9: weights of segmental markets

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 

The scoring criterion is shown in table 10.

Table 10 scoring criteria for segmental market

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 

It’s rational to consider the segmental market as part of the market of a sub-sector because different sub-sectors certainly mean different markets, although some members’ commitments didn’t show which sub-sector a segmental market belongs to. So first, the weighted sum of scores of measures in all segmental markets of a particular sub-sector was figured out as score of such sub-sector and second, weighted sum of scores of all sub-sectors was made as the index of segmental market freedom. Table A-3 in Annex reported the index of segmental market freedom as well as content and relationship of measures, segmental markets and sub-sectors. The indexes of members who didn’t take measures in this category are all 10. They are not listed in table A-3, who are Albania, Argentina, Bolivia, Bulgaria, Colombia, Cote d’lvoire, Croatia, Cuba, Ecuador, Gabon, Georgia, Hong Kong, Hungary, India, Indonesia, Israel, Jordan, Kenya, Kyrgyz, Latvia, Lithuania, Macau, Macedonia, Malta, Mauritius, Mexico, Mongolia, Morocco, Nicaragua, Nigeria, Oman, Paraguay, Peru, Poland, Qatar, Saudi Arabia, Slovak, South Africa, Sri Lanka, Thailand, Turkey, United Arab Emirates.

f. Scoring criteria for ownership limitation

Members, on one hand, allowed foreign invested banking institutions provide services in domestic market, on the other hand, restricted the ownership of domestic banking assets through restricting the ownership of locally established foreign banking institutions. The majority or parts of banking assets will be kept by domestic capital through measure of ownership limitation which is restricting establishment of branches or restricting share structure of joint venture banks. For joint venture banks, members restricted share of either individual foreign stockholder and its related parties or aggregate foreign stockholders through setting ceiling of foreign share or requiring foreigners to get authorization before investing. A very few members limited the number of foreign directors as an additional measure. Different situations were usually distinguished in members’ commitments. One is when establishing new joint venture bank, the other is when investing in existing banks.

The scoring criterion of ownership limitation is as follows:

According to the objects it restricts, the measure of ownership limitations was classified into three sub-categories which are limitations on branching, on individual foreign share of joint venture banks, and on aggregate foreign share of joint venture banks. They were assigned weights as 0.4, 0.3, 0.3 respectively. Each of them was scored independently and the weighted sum of their scores is the index of ownership freedom.

Usually the ceiling of foreign share in members’ commitments is a percentage. Through multiplying the percentage by value 10, score of sub-category measures was got directly. But sometimes members distinguished the conditions to take measures, which was taken into account through assigning the same weights to every conditions and calculating the weighted sum of scores of measures under different conditions.

A special situation in this category is members tended to loose some ceiling by discretionary authorization. In such case, the percentage of foreign share was divided into two parts. One is the part below the ceiling (form zero to ceiling) and another is the part above the ceiling (from ceiling to the theoretic maximum of foreign share, usually 100%). Both of them were scored respectively and the score of latter was adjusted by authorization coefficient. Sum of the two parts’ score is the final score of such case.

Table A-4 in Annex reported the index and summary of ownership limitation. The indexes of members who didn’t take measures in this category are all 10. They were not listed in table A-4, who are Albania, Argentina, Armenia, Bolivia, Croatia, Estonia, Gabon, Georgia, Guyana, Jamaica, Kyrgyz, Latvia, Lithuania, Mongolia, Panama, Paraguay, Qatar, Romania, South Africa.

g. Scoring criteria for scale limitation

Since developing members have all opened their market in different degrees, one of their worries is that foreign banks entrance may lead to intense competition and market share decrease of domestic banks. So some members also took measures to limit the scale of foreign invested banking institutions. However, such measures are mainly imposed on branches or foreign controlled joint venture banks. Those joint venture banks where foreign banks only hold minority of shares are usually not limited.

The measure was taken on both asset or transaction scale and establishment scale. For asset or transaction scale, some members limited that relating to aggregate foreign banking institutions, some limited that relating to individual foreign banking institutions. And the measure often affects particular sub-sector or business, which makes the impact of such measures decrease. For establishment scale, members usually limited sub-branching, offices and ATM networks. Because the limitations on asset or transaction and on establishment scale are entirely different kinds, this paper measured them separately.

The scoring criterion of asset or transaction limitation is discussed as follows.

Weight of 0.5 is assigned to each of such measures: measure on aggregate scale and the one on individual scale of foreign invested banking institutions. Weighted sum of scores of the two measures is the score of asset or transaction limitation. Criterion of segmental market limitation is applied here to assign weight to the particular scope a measure affects. Because this kind of measures diversify greatly, it’s hard to compare each other. For simple, each measure is scored 5.

Table A-5(1) in annex reported the score of asset or transaction limitation.

The scoring criterion of establishment scale limitation is discussed as follows.

The measure of establishment scale limitation includes three kinds which are sub-branching limitation, offices limitation and ATM network limitation. They are assigned weights as 0.5, 0.3, 0.2 respectively. The weighted sum of scores of all the three kinds of measures is the score of establishment scale limitation. For sub-branching limitation, the ceiling of sub-branches’ number is used as the score value.

Table A-5(2) in annex reported the score of establishment scale limitation.

h.   Scoring criterion for employment limitation

Some members took measures to limit foreigners to assume the position of CEO or senior manager and some limited the proportion of foreign employees in a foreign invested banking institution. This paper gave the index of employment freedom directly in table A-6 in the annex based on the assumption that limitation on CEO is more important than on senior manager and limitation on aggregate foreign employees is the mildest measure. Because employment localization is the best way to reduce cost and develop local market.

i.   Scoring criterion for subsidy & tax treatment limitation

Subsidy & tax treatment limitation is the main restrictive measure relating to national treatment. Other measures on national treatment have been merged to measures on market access in the above five categories.

The scoring criterion of subsidy & tax treatment limitation is as follows.

Weight of 0.5 is assigned to measures limiting subsidy treatment and tax treatment. Because this kind of measures usually limits a particular sub-sector, the weighted sum of scores of subsidy treatment limitation and tax treatment limitation is only the sub-sector’s score. The weighted sum of sub-sector’s score is the index of subsidy & tax national treatment.

If a measure of subsidy or tax covers whole sub-sector or whole area, there is no discrimination, so it’s scored 9. If a measure only affects a small part of foreign banking institution or in a light degree, it’s scored 7. If a measure covers half part of foreign banking institutions, it’s scored 4. If a measure discriminates all foreign banking institutions, it’s scored 2.

Table A-7 in annex reported the index of subsidy & tax national treatment.

VI.      Conclusion

Ninety Members’ final index of trade freedom and index of all six categories of restrictive measures were reported in table A-8.

         Table A-1 Coverage of specific commitments schedule

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Table A-2 Index of institution setting freedom

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10

     Table A-2 Index of institution setting freedom -continued

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3

       

      Table A-3 Index of segmental market freedom

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10

Table A-3 Index of segmental market freedom -continued

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10

    Table A-3 Index of segmental market freedom-continued

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10

               Table A-4 Index of ownership freedom

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements

able A-4 Index of ownership freedom-continued

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Honduras 6 forbid
Hong Kong 6.63 Need authorization based on specified conditions except for grandfather provision acquire existing local bank require approval
Hungary 5.7 forbid at least 2 must be residents
India 3.9 forbid investment in existing bank can't exceed 10% of owned funds or 30% of capital of the existing bank, whichever is lower
Indonesia 3.93 Forbid, except for grandfather provision 49% except for grandfather provision
Israel 9.7 at least 2 must be residents
Jordan 10 Permit
Kenya 7.2 Need authorization
Korea 5.19 Permit Ceiling is 4%,but 15% for provincial banks limited
Kuwait 3.24 Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 40%
Macau 9.7 Permit at least 3 directors and 2 of them must be residents in Macau
Macedonia 9.2 Permit no later than 2008
Malaysia 1.32 Forbid Ceiling is 20%. To acquire more than 5%, banks must match specified criteria 30%
Malta 3 Need authorization based on economic demand test equity participation need authorization equity participation need authorization

Table A-4 Index of ownership freedom-continued

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Honduras 6 forbid
Hong Kong 6.63 Need authorization based on specified conditions except for grandfather provision acquire existing local bank require approval
Hungary 5.7 forbid at least 2 must be residents
India 3.9 forbid investment in existing bank can't exceed 10% of owned funds or 30% of capital of the existing bank, whichever is lower
Indonesia 3.93 Forbid, except for grandfather provision 49% except for grandfather provision
Israel 9.7 at least 2 must be residents
Jordan 10 Permit
Kenya 7.2 Need authorization
Korea 5.19 Permit Ceiling is 4%,but 15% for provincial banks limited
Kuwait 3.24 Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 40%
Macau 9.7 Permit at least 3 directors and 2 of them must be residents in Macau
Macedonia 9.2 Permit no later than 2008
Malaysia 1.32 Forbid Ceiling is 20%. To acquire more than 5%, banks must match specified criteria 30%
Malta 3 Need authorization based on economic demand test equity participation need authorization equity participation need authorization
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Mauritius 7.2 Need authorization based on economic demand test
Mexico 5.49 Permit 5%, or 20%with authorization 40%,effective control by Mexican shareholders is required
Moldova 7.2 Need authorization
Morocco 8.8 Permit Limitation on the participation of foreign capital in the capital of the large existing bank which would lead to takeover
Nicaragua 7.2 Need authorization based on economic demand test
Nigeria 10 Permit
Oman 6.1 Permit 35%
Pakistan 4.08 license required based on the same criteria applicable to domestic banks More than 5% need authorization 49%
Peru 5.31 Need authorization based on economic demand test More than 10% need authorization
Philippines 5.66 Need authorization based on public interest and listed conditions 51% in new established bank; 30% or 40% with authorization in existing bank
Poland 10 Permit
Saudi Arabia 7.6 Permit 60%
Singapore 5.35 Permit 5% 40%
Slovak 5.3 Need authorization based on criteria of profession equity participation in existing bank need authorization equity participation in existing bank need authorization
Sri Lanka 4.14 Need authorization based on economic demand test 49%
Thailand 3.03 Need authorization 5%, but may be relaxed 25%,may be relaxed. factoring and credit card business is 49% At least 75% of the directors is Thai nationality

Table A-4 Index of ownership freedom-continued

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Honduras 6 forbid
Hong Kong 6.63 Need authorization based on specified conditions except for grandfather provision acquire existing local bank require approval
Hungary 5.7 forbid at least 2 must be residents
India 3.9 forbid investment in existing bank can't exceed 10% of owned funds or 30% of capital of the existing bank, whichever is lower
Indonesia 3.93 Forbid, except for grandfather provision 49% except for grandfather provision
Israel 9.7 at least 2 must be residents
Jordan 10 Permit
Kenya 7.2 Need authorization
Korea 5.19 Permit Ceiling is 4%,but 15% for provincial banks limited
Kuwait 3.24 Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 40%
Macau 9.7 Permit at least 3 directors and 2 of them must be residents in Macau
Macedonia 9.2 Permit no later than 2008
Malaysia 1.32 Forbid Ceiling is 20%. To acquire more than 5%, banks must match specified criteria 30%
Malta 3 Need authorization based on economic demand test equity participation need authorization equity participation need authorization
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Mauritius 7.2 Need authorization based on economic demand test
Mexico 5.49 Permit 5%, or 20%with authorization 40%,effective control by Mexican shareholders is required
Moldova 7.2 Need authorization
Morocco 8.8 Permit Limitation on the participation of foreign capital in the capital of the large existing bank which would lead to takeover
Nicaragua 7.2 Need authorization based on economic demand test
Nigeria 10 Permit
Oman 6.1 Permit 35%
Pakistan 4.08 license required based on the same criteria applicable to domestic banks More than 5% need authorization 49%
Peru 5.31 Need authorization based on economic demand test More than 10% need authorization
Philippines 5.66 Need authorization based on public interest and listed conditions 51% in new established bank; 30% or 40% with authorization in existing bank
Poland 10 Permit
Saudi Arabia 7.6 Permit 60%
Singapore 5.35 Permit 5% 40%
Slovak 5.3 Need authorization based on criteria of profession equity participation in existing bank need authorization equity participation in existing bank need authorization
Sri Lanka 4.14 Need authorization based on economic demand test 49%
Thailand 3.03 Need authorization 5%, but may be relaxed 25%,may be relaxed. factoring and credit card business is 49% At least 75% of the directors is Thai nationality
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Tunisia 5.7 Need authorization 50% in existing bank
Turkey 6.68 Need authorization acquisition or transfer of shares equal or higher than 5%,20%,33%,50% require approval
United Arab Emirates 2.94 Unbound 49%
Uruguay 5.8 Need authorization
Venezuela 7.2 Need authorization based on economic demand test
Zimbabwe 7.6 60%

             

 Table A-5(1) Score of asset or transaction scale limitation

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Honduras 6 forbid
Hong Kong 6.63 Need authorization based on specified conditions except for grandfather provision acquire existing local bank require approval
Hungary 5.7 forbid at least 2 must be residents
India 3.9 forbid investment in existing bank can't exceed 10% of owned funds or 30% of capital of the existing bank, whichever is lower
Indonesia 3.93 Forbid, except for grandfather provision 49% except for grandfather provision
Israel 9.7 at least 2 must be residents
Jordan 10 Permit
Kenya 7.2 Need authorization
Korea 5.19 Permit Ceiling is 4%,but 15% for provincial banks limited
Kuwait 3.24 Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 40%
Macau 9.7 Permit at least 3 directors and 2 of them must be residents in Macau
Macedonia 9.2 Permit no later than 2008
Malaysia 1.32 Forbid Ceiling is 20%. To acquire more than 5%, banks must match specified criteria 30%
Malta 3 Need authorization based on economic demand test equity participation need authorization equity participation need authorization
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Mauritius 7.2 Need authorization based on economic demand test
Mexico 5.49 Permit 5%, or 20%with authorization 40%,effective control by Mexican shareholders is required
Moldova 7.2 Need authorization
Morocco 8.8 Permit Limitation on the participation of foreign capital in the capital of the large existing bank which would lead to takeover
Nicaragua 7.2 Need authorization based on economic demand test
Nigeria 10 Permit
Oman 6.1 Permit 35%
Pakistan 4.08 license required based on the same criteria applicable to domestic banks More than 5% need authorization 49%
Peru 5.31 Need authorization based on economic demand test More than 10% need authorization
Philippines 5.66 Need authorization based on public interest and listed conditions 51% in new established bank; 30% or 40% with authorization in existing bank
Poland 10 Permit
Saudi Arabia 7.6 Permit 60%
Singapore 5.35 Permit 5% 40%
Slovak 5.3 Need authorization based on criteria of profession equity participation in existing bank need authorization equity participation in existing bank need authorization
Sri Lanka 4.14 Need authorization based on economic demand test 49%
Thailand 3.03 Need authorization 5%, but may be relaxed 25%,may be relaxed. factoring and credit card business is 49% At least 75% of the directors is Thai nationality
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Tunisia 5.7 Need authorization 50% in existing bank
Turkey 6.68 Need authorization acquisition or transfer of shares equal or higher than 5%,20%,33%,50% require approval
United Arab Emirates 2.94 Unbound 49%
Uruguay 5.8 Need authorization
Venezuela 7.2 Need authorization based on economic demand test
Zimbabwe 7.6 60%
Member Summary of asset or transaction scale limitation Score
Aggregate scale Individual scale
Chinese Taipei Foreign banks are subject to per client foreign currency credit extension limit of 25% of the net worth of their head office; and per client New Taiwan dollar credit extension limit of 10% of the total balance of New Taiwan dollars credit extension or one billion New Taiwan dollars, whichever is higher. 8.75
Malaysia foreign controlled banking institutions[16] in Malaysia are allowed to extend credit facilities, including factoring and leasing up to a maximum of 40% of the total credit facilities obtained by non-resident controlled companies from banking institutions. The limitation will be relaxed to 50% in the year 2000. 9.38
Pakistan bound for the total volume of foreign banks' assets in Pakistan and total volume of deposits mobilized by foreign bank on Dec 12 1997 7.5
Philippines 70% total assets of banking system must be held by domestic banks which are at least majority-owned by Filipinos. 7.5
Singapore local currency loan to residents shall not exceed S$200m 9.39
South Africa branches must maintain a minimum balance of R 1 million on the deposit accounts of natural persons 9.38
Tunisia all non-resident banks established in Tunisia as a whole, 1.5% of the deposits of deposit banks. funds from residents received by non-resident bank established in Tunisia must not exceed its share of equity of resident enterprises 8.94
Turkey lending limit of foreign bank branch is based on branch capital 9.38

         Table A-5(2) Score of establishment scale limitation

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Honduras 6 forbid
Hong Kong 6.63 Need authorization based on specified conditions except for grandfather provision acquire existing local bank require approval
Hungary 5.7 forbid at least 2 must be residents
India 3.9 forbid investment in existing bank can't exceed 10% of owned funds or 30% of capital of the existing bank, whichever is lower
Indonesia 3.93 Forbid, except for grandfather provision 49% except for grandfather provision
Israel 9.7 at least 2 must be residents
Jordan 10 Permit
Kenya 7.2 Need authorization
Korea 5.19 Permit Ceiling is 4%,but 15% for provincial banks limited
Kuwait 3.24 Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 40%
Macau 9.7 Permit at least 3 directors and 2 of them must be residents in Macau
Macedonia 9.2 Permit no later than 2008
Malaysia 1.32 Forbid Ceiling is 20%. To acquire more than 5%, banks must match specified criteria 30%
Malta 3 Need authorization based on economic demand test equity participation need authorization equity participation need authorization
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Mauritius 7.2 Need authorization based on economic demand test
Mexico 5.49 Permit 5%, or 20%with authorization 40%,effective control by Mexican shareholders is required
Moldova 7.2 Need authorization
Morocco 8.8 Permit Limitation on the participation of foreign capital in the capital of the large existing bank which would lead to takeover
Nicaragua 7.2 Need authorization based on economic demand test
Nigeria 10 Permit
Oman 6.1 Permit 35%
Pakistan 4.08 license required based on the same criteria applicable to domestic banks More than 5% need authorization 49%
Peru 5.31 Need authorization based on economic demand test More than 10% need authorization
Philippines 5.66 Need authorization based on public interest and listed conditions 51% in new established bank; 30% or 40% with authorization in existing bank
Poland 10 Permit
Saudi Arabia 7.6 Permit 60%
Singapore 5.35 Permit 5% 40%
Slovak 5.3 Need authorization based on criteria of profession equity participation in existing bank need authorization equity participation in existing bank need authorization
Sri Lanka 4.14 Need authorization based on economic demand test 49%
Thailand 3.03 Need authorization 5%, but may be relaxed 25%,may be relaxed. factoring and credit card business is 49% At least 75% of the directors is Thai nationality
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Tunisia 5.7 Need authorization 50% in existing bank
Turkey 6.68 Need authorization acquisition or transfer of shares equal or higher than 5%,20%,33%,50% require approval
United Arab Emirates 2.94 Unbound 49%
Uruguay 5.8 Need authorization
Venezuela 7.2 Need authorization based on economic demand test
Zimbabwe 7.6 60%
Member Summary of asset or transaction scale limitation Score
Aggregate scale Individual scale
Chinese Taipei Foreign banks are subject to per client foreign currency credit extension limit of 25% of the net worth of their head office; and per client New Taiwan dollar credit extension limit of 10% of the total balance of New Taiwan dollars credit extension or one billion New Taiwan dollars, whichever is higher. 8.75
Malaysia foreign controlled banking institutions[16] in Malaysia are allowed to extend credit facilities, including factoring and leasing up to a maximum of 40% of the total credit facilities obtained by non-resident controlled companies from banking institutions. The limitation will be relaxed to 50% in the year 2000. 9.38
Pakistan bound for the total volume of foreign banks' assets in Pakistan and total volume of deposits mobilized by foreign bank on Dec 12 1997 7.5
Philippines 70% total assets of banking system must be held by domestic banks which are at least majority-owned by Filipinos. 7.5
Singapore local currency loan to residents shall not exceed S$200m 9.39
South Africa branches must maintain a minimum balance of R 1 million on the deposit accounts of natural persons 9.38
Tunisia all non-resident banks established in Tunisia as a whole, 1.5% of the deposits of deposit banks. funds from residents received by non-resident bank established in Tunisia must not exceed its share of equity of resident enterprises 8.94
Turkey lending limit of foreign bank branch is based on branch capital 9.38
Member Summary of establishment scale limitation Score
Sub-branching Office ATM network
Bahrain Unbound for sub-branching of foreign bank branch 7.5
Brazil Need authorization except grandfather provision 6.8
China gradually remove geographic restriction within 5 years after accession 9.7
Hong Kong No more than 3 offices for branch Only in office 7.3
India Need authorization 8.6
Indonesia Only one sub-branch Only set up in 8 designated cities 4
Malaysia Unbound Unbound 5
Oman In capital of Oman, sub-branches are limited to 4 8.5
Pakistan 3 6.5
Philippines No more than 6 sub-branches for foreign bank branch 3 at locations of own choices and 3 at designated locations 8.4
Qatar 8 9
Singapore Forbid new sub-branch Only one in designated location Only in office 0.5
Thailand For foreign bank branch: only joining ATM pools operated by Thai banks or within own premises or sharing the facilities with other commercial banks in Thailand 8.8
Turkey Need authorization 6.5

                         Table A-6 Index of employment freedom

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Honduras 6 forbid
Hong Kong 6.63 Need authorization based on specified conditions except for grandfather provision acquire existing local bank require approval
Hungary 5.7 forbid at least 2 must be residents
India 3.9 forbid investment in existing bank can't exceed 10% of owned funds or 30% of capital of the existing bank, whichever is lower
Indonesia 3.93 Forbid, except for grandfather provision 49% except for grandfather provision
Israel 9.7 at least 2 must be residents
Jordan 10 Permit
Kenya 7.2 Need authorization
Korea 5.19 Permit Ceiling is 4%,but 15% for provincial banks limited
Kuwait 3.24 Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 40%
Macau 9.7 Permit at least 3 directors and 2 of them must be residents in Macau
Macedonia 9.2 Permit no later than 2008
Malaysia 1.32 Forbid Ceiling is 20%. To acquire more than 5%, banks must match specified criteria 30%
Malta 3 Need authorization based on economic demand test equity participation need authorization equity participation need authorization
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Mauritius 7.2 Need authorization based on economic demand test
Mexico 5.49 Permit 5%, or 20%with authorization 40%,effective control by Mexican shareholders is required
Moldova 7.2 Need authorization
Morocco 8.8 Permit Limitation on the participation of foreign capital in the capital of the large existing bank which would lead to takeover
Nicaragua 7.2 Need authorization based on economic demand test
Nigeria 10 Permit
Oman 6.1 Permit 35%
Pakistan 4.08 license required based on the same criteria applicable to domestic banks More than 5% need authorization 49%
Peru 5.31 Need authorization based on economic demand test More than 10% need authorization
Philippines 5.66 Need authorization based on public interest and listed conditions 51% in new established bank; 30% or 40% with authorization in existing bank
Poland 10 Permit
Saudi Arabia 7.6 Permit 60%
Singapore 5.35 Permit 5% 40%
Slovak 5.3 Need authorization based on criteria of profession equity participation in existing bank need authorization equity participation in existing bank need authorization
Sri Lanka 4.14 Need authorization based on economic demand test 49%
Thailand 3.03 Need authorization 5%, but may be relaxed 25%,may be relaxed. factoring and credit card business is 49% At least 75% of the directors is Thai nationality
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Tunisia 5.7 Need authorization 50% in existing bank
Turkey 6.68 Need authorization acquisition or transfer of shares equal or higher than 5%,20%,33%,50% require approval
United Arab Emirates 2.94 Unbound 49%
Uruguay 5.8 Need authorization
Venezuela 7.2 Need authorization based on economic demand test
Zimbabwe 7.6 60%
Member Summary of asset or transaction scale limitation Score
Aggregate scale Individual scale
Chinese Taipei Foreign banks are subject to per client foreign currency credit extension limit of 25% of the net worth of their head office; and per client New Taiwan dollar credit extension limit of 10% of the total balance of New Taiwan dollars credit extension or one billion New Taiwan dollars, whichever is higher. 8.75
Malaysia foreign controlled banking institutions[16] in Malaysia are allowed to extend credit facilities, including factoring and leasing up to a maximum of 40% of the total credit facilities obtained by non-resident controlled companies from banking institutions. The limitation will be relaxed to 50% in the year 2000. 9.38
Pakistan bound for the total volume of foreign banks' assets in Pakistan and total volume of deposits mobilized by foreign bank on Dec 12 1997 7.5
Philippines 70% total assets of banking system must be held by domestic banks which are at least majority-owned by Filipinos. 7.5
Singapore local currency loan to residents shall not exceed S$200m 9.39
South Africa branches must maintain a minimum balance of R 1 million on the deposit accounts of natural persons 9.38
Tunisia all non-resident banks established in Tunisia as a whole, 1.5% of the deposits of deposit banks. funds from residents received by non-resident bank established in Tunisia must not exceed its share of equity of resident enterprises 8.94
Turkey lending limit of foreign bank branch is based on branch capital 9.38
Member Summary of establishment scale limitation Score
Sub-branching Office ATM network
Bahrain Unbound for sub-branching of foreign bank branch 7.5
Brazil Need authorization except grandfather provision 6.8
China gradually remove geographic restriction within 5 years after accession 9.7
Hong Kong No more than 3 offices for branch Only in office 7.3
India Need authorization 8.6
Indonesia Only one sub-branch Only set up in 8 designated cities 4
Malaysia Unbound Unbound 5
Oman In capital of Oman, sub-branches are limited to 4 8.5
Pakistan 3 6.5
Philippines No more than 6 sub-branches for foreign bank branch 3 at locations of own choices and 3 at designated locations 8.4
Qatar 8 9
Singapore Forbid new sub-branch Only one in designated location Only in office 0.5
Thailand For foreign bank branch: only joining ATM pools operated by Thai banks or within own premises or sharing the facilities with other commercial banks in Thailand 8.8
Turkey Need authorization 6.5
Member Index Position unavailable for non-residents Summary of employment limitation
CEO Senior manager 15% of the staff More than 15% of the staff
Bolivia 9 the number of foreign employees may not exceed 15% of the staff
Chile 9 the number of foreign employees may not exceed 15% of the staff
Georgia 9 at least one manager with his domicile in George
Hong Kong 6 CEO must be resident
India 9 Must constitute local advisory boards consisting of professionals and experts in small-scale industry and exports. The chairman and members of the board must be resident Indian nationals
Indonesia 4 for branch, only executive position can be assumed by expatriates
Lithuania 8 at least one manager must be Lithuanian citizen
Macau 7 For branch, CEO must be resident
Panama 9 Foreign technical employees may not exceed 15% of the total workforce.
Poland 8 at least one executive must be Poland national
Thailand 7 Ceiling of foreign employees is 8.[17]
Venezuela 8 no less than 50% of the administrative board of bank must reside in Venezuela.
 
Resource:  author compiled.         means unavailable for non-residents;         means partially unavailable for non-residents.

                     Table A-7 index of subsidy & tax national treatment

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Honduras 6 forbid
Hong Kong 6.63 Need authorization based on specified conditions except for grandfather provision acquire existing local bank require approval
Hungary 5.7 forbid at least 2 must be residents
India 3.9 forbid investment in existing bank can't exceed 10% of owned funds or 30% of capital of the existing bank, whichever is lower
Indonesia 3.93 Forbid, except for grandfather provision 49% except for grandfather provision
Israel 9.7 at least 2 must be residents
Jordan 10 Permit
Kenya 7.2 Need authorization
Korea 5.19 Permit Ceiling is 4%,but 15% for provincial banks limited
Kuwait 3.24 Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 40%
Macau 9.7 Permit at least 3 directors and 2 of them must be residents in Macau
Macedonia 9.2 Permit no later than 2008
Malaysia 1.32 Forbid Ceiling is 20%. To acquire more than 5%, banks must match specified criteria 30%
Malta 3 Need authorization based on economic demand test equity participation need authorization equity participation need authorization
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Mauritius 7.2 Need authorization based on economic demand test
Mexico 5.49 Permit 5%, or 20%with authorization 40%,effective control by Mexican shareholders is required
Moldova 7.2 Need authorization
Morocco 8.8 Permit Limitation on the participation of foreign capital in the capital of the large existing bank which would lead to takeover
Nicaragua 7.2 Need authorization based on economic demand test
Nigeria 10 Permit
Oman 6.1 Permit 35%
Pakistan 4.08 license required based on the same criteria applicable to domestic banks More than 5% need authorization 49%
Peru 5.31 Need authorization based on economic demand test More than 10% need authorization
Philippines 5.66 Need authorization based on public interest and listed conditions 51% in new established bank; 30% or 40% with authorization in existing bank
Poland 10 Permit
Saudi Arabia 7.6 Permit 60%
Singapore 5.35 Permit 5% 40%
Slovak 5.3 Need authorization based on criteria of profession equity participation in existing bank need authorization equity participation in existing bank need authorization
Sri Lanka 4.14 Need authorization based on economic demand test 49%
Thailand 3.03 Need authorization 5%, but may be relaxed 25%,may be relaxed. factoring and credit card business is 49% At least 75% of the directors is Thai nationality
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Tunisia 5.7 Need authorization 50% in existing bank
Turkey 6.68 Need authorization acquisition or transfer of shares equal or higher than 5%,20%,33%,50% require approval
United Arab Emirates 2.94 Unbound 49%
Uruguay 5.8 Need authorization
Venezuela 7.2 Need authorization based on economic demand test
Zimbabwe 7.6 60%
Member Summary of asset or transaction scale limitation Score
Aggregate scale Individual scale
Chinese Taipei Foreign banks are subject to per client foreign currency credit extension limit of 25% of the net worth of their head office; and per client New Taiwan dollar credit extension limit of 10% of the total balance of New Taiwan dollars credit extension or one billion New Taiwan dollars, whichever is higher. 8.75
Malaysia foreign controlled banking institutions[16] in Malaysia are allowed to extend credit facilities, including factoring and leasing up to a maximum of 40% of the total credit facilities obtained by non-resident controlled companies from banking institutions. The limitation will be relaxed to 50% in the year 2000. 9.38
Pakistan bound for the total volume of foreign banks' assets in Pakistan and total volume of deposits mobilized by foreign bank on Dec 12 1997 7.5
Philippines 70% total assets of banking system must be held by domestic banks which are at least majority-owned by Filipinos. 7.5
Singapore local currency loan to residents shall not exceed S$200m 9.39
South Africa branches must maintain a minimum balance of R 1 million on the deposit accounts of natural persons 9.38
Tunisia all non-resident banks established in Tunisia as a whole, 1.5% of the deposits of deposit banks. funds from residents received by non-resident bank established in Tunisia must not exceed its share of equity of resident enterprises 8.94
Turkey lending limit of foreign bank branch is based on branch capital 9.38
Member Summary of establishment scale limitation Score
Sub-branching Office ATM network
Bahrain Unbound for sub-branching of foreign bank branch 7.5
Brazil Need authorization except grandfather provision 6.8
China gradually remove geographic restriction within 5 years after accession 9.7
Hong Kong No more than 3 offices for branch Only in office 7.3
India Need authorization 8.6
Indonesia Only one sub-branch Only set up in 8 designated cities 4
Malaysia Unbound Unbound 5
Oman In capital of Oman, sub-branches are limited to 4 8.5
Pakistan 3 6.5
Philippines No more than 6 sub-branches for foreign bank branch 3 at locations of own choices and 3 at designated locations 8.4
Qatar 8 9
Singapore Forbid new sub-branch Only one in designated location Only in office 0.5
Thailand For foreign bank branch: only joining ATM pools operated by Thai banks or within own premises or sharing the facilities with other commercial banks in Thailand 8.8
Turkey Need authorization 6.5
Member Index Position unavailable for non-residents Summary of employment limitation
CEO Senior manager 15% of the staff More than 15% of the staff
Bolivia 9 the number of foreign employees may not exceed 15% of the staff
Chile 9 the number of foreign employees may not exceed 15% of the staff
Georgia 9 at least one manager with his domicile in George
Hong Kong 6 CEO must be resident
India 9 Must constitute local advisory boards consisting of professionals and experts in small-scale industry and exports. The chairman and members of the board must be resident Indian nationals
Indonesia 4 for branch, only executive position can be assumed by expatriates
Lithuania 8 at least one manager must be Lithuanian citizen
Macau 7 For branch, CEO must be resident
Panama 9 Foreign technical employees may not exceed 15% of the total workforce.
Poland 8 at least one executive must be Poland national
Thailand 7 Ceiling of foreign employees is 8.[17]
Venezuela 8 no less than 50% of the administrative board of bank must reside in Venezuela.
 
Resource:  author compiled.         means unavailable for non-residents;         means partially unavailable for non-residents.
Member Sub-sector Index Subsidy Tax
Bahrain All 0 Unbound Unbound
Brazil 81116,8113 8 National treatment National treatment
Chile 81115-81119 81131,81139 7.5 National treatment National treatment
Costa Rica 81115-81119 5 National treatment National treatment
Dominican Republic 81115-81119 81131-81133 5 Unbound for 81131-81133 Unbound for 81131-81133
El Salvador 81116,81119 81131-81133 0 Unbound Unbound
Gabon 8113 5 National treatment National treatment
Ghana All 8.5 Government support bank located in rural area National treatment
Honduras 81116,81119 81132-81139 7.5 National treatment National treatment
Hungary All 5 Unbound National treatment
Jamaica 81115,81116 8113 9 National treatment National treatment
Jordan All 5 Unbound National treatment
Kenya All 0 Unbound Unbound
Korea 81115,81116 8113 9 National treatment National treatment
Kuwait All 0 Unbound Unbound
Lithuania All 8 eligibility of subsidies maybe limited to legal persons within the territory of Lithuania National treatment
Nicaragua All 8.5 National treatment Tax rate of payment of dividends to foreigners is 5%, tax of interest payment abroad is 30%
Oman All 7 National treatment bank with more than 70% foreign equity should pay higher rate income tax
Saudi Arabia All 6 National treatment income tax to foreign bank
Tunisia 81115,81116 81131-81133 4.75 National treatment only for resident banks in 81115,81116,81132,81133; National treatment for 81131 National treatment only for resident banks in 81115,81116,81132,81133; National treatment for 81131
United Arab Emirates All 2 may offer subsidy to nationals foreigners may be required to pay direct tax on income
Uruguay 81115,81116 81132,81133 6.5 National treatment National treatment
Venezuela 81115,81116 81131-81133 8 National treatment National treatment
 

   

     Table A-8 summary of index of trade freedom

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10
Singapore No new licenses for joint venture Joint venture & branch 5.5
Slovak Need authorization based on criteria of profession and so on. Joint venture & branch 3.5
Sri Lanka Need authorization based on economic demand test Joint venture & branch 3
Thailand No new licenses for joint venture but permit acquiring share of existing banks Establishing branch need authorization Joint venture & branch 4.5
Tunisia Need authorization 3
Turkey Need authorization Joint venture & branch 3
United Arab Emirates Unbound for branch 5
Uruguay Need authorization and ceiling of annually new bank entry is 10% of last year Joint venture & branch 1.2
Venezuela Need authorization based on economic conditions Joint venture & branch 3
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Armenia 81116 81119 branch,resident natural persons Forbid 8.25 9.3
others[13] 10
Brazil 81116 demand deposits, time deposits, savings deposits destined for housing finance Only open segmental markets 7 6.8
8113 10
Chile 81132,81133 No commitments 0 7.5
others 10
China All[14] Enterprise local currency business, Open in two years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application 6.3 7.41
Personal local currency business Open in five years after accession; Must have three years operation in China and being profitable for two consecutive years prior to  the application
Foreign currency business None 10
Chinese Taipei 81116 foreign exchange checking account deposits and foreign exchange negotiable certificates of time deposit Forbid 8.5 8.89
8113 Foreign currency, residents only available  when there are underlying transactions;except for post -export loans,  are not allowed to be converted into New Taiwan dollars 8.68
Foreign currency, non-residents Forbid
others 10
Costa Rica 8113 No commitments 0 5
others 10
Czech 81131 Joint venture banks Permit 5 9.25
Branches forbid
others 10
Dominican Republic 81139 No commitments 9 9
others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
others 10
Egypt All branches,local currency Only open to branches existed on 1992 6.8 6.85
El Salvador All Unbound or no commitments 0 0
Estonia 81115-81119 Need authorization 3 6.5
8113 10
Gabon 81115-81119 No commitments 0 5
8113 10
Guyana 8113 Non-residents Need authorization 7.9 8.95
Others 10
Honduras 81115,81131 No commitments 0 7.5
Others 10
Jamaica 81119 No commitments 0 9
Others 10
Korea 81115,81116 Non-residents Need authorization 6.01 5.44
Foreign currency Need authorization
CDs the maturity of CDs shall be more than 30 days
8113 Non-residents Need authorization 6.25
Foreign currency Need authorization and are restricted with respect to ceiling and uses
Kuwait all Unbound 0 0
Malaysia 81115-81119 Foreign currency, residents Be subject to conditions imposed on designated banks 9.37 9.69
others 10
Moldova 81132,81133 Non-residents Need authorization 7.9 9.48
Others 10
Pakistan 81131,81139 Non-residents controlled enterprises is subject to the borrowing entitlements 9.1 9.78
Others 10
Panama 81131 mortgage of real estate forbid 6 8.95
Others 10
Philippines 81115-81119 Foreign currency Need authorization 5.45 7.73
Substitute of deposit Need authorization
Others 10
Member Sub-sector Summary of segmental market limitation Score Index
Segmental market Measure
Foreign currency business None 10
Romania all Residents, local currency Permit 7.9 7.9
Residents, foreign currency forbid
Non-residents
Singapore 81115-81119 Foreign currency saving account,non-residents Need authorization 4.89 6.66
restricted banks as provider,foreign currency fixed deposit and current account and more than S$250000 local currency fixed deposit permit
Restricted banks as provider, other deposit services forbid
Branches,foreign currency fixed deposits permit
Branches,non-residents, fixed deposits of more than S$250000 per deposit permit
Branches, other deposit services forbid
8113 Local currency, non-residents Need authorization 8.43
Tunisia[15] 81115,81116 “Non-resident banks”,residents Need authorization 7.55 5.25
81131 “Non-resident banks” Need authorization 6.5
81132,81133 “Resident banks” permit 5
Uruguay 81119,81131,81139 No commitments 0 6.5
Others 10
Venezuela 81119,81139 No commitments 0 8
Others 10
Zimbabwe 81139 loan for building forbid 5 9.5
Others 10
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Bahrain 2.67 Need authorization unbound 49%
Bolivia 10
Brazil 7.2 Need authorization
Bulgaria 4.01 forbid acquisition of 5% or more voting rights of existing one need approval
Chile 5.31 Need authorization based on economic demand test without  authorization, can't acquire more than 10% equity
China 4.3 Foreign banks with assets more than US$ 20 billion are permitted 25%
Chinese Taipei 7.01 foreign banks are permitted who matches specified business relation and volume with Taiwan enterprises 3 years before applying Individual 5%, related party 15%, unless obtain approval
Colombia 6 forbid
Costa Rica 6 forbid
Cote d’lvoire 6 forbid
Cuba 4.14 Need authorization 49%
Czech 6.15 Need authorization purchase of shares of existing banks is subject to prior approval
Dominican Republic 4.14 Need authorization based on economic demand test 49%
Ecuador 6 forbid
Egypt 5.31 Need authorization based on economic demand test acquiring more than 10% need approval No ceiling
El Salvador 2.5 acquiring more than 1% need approval at least 75% share can be hold by foreign bank with first grade risk rating;
Ghana 7.4 need authorization based on prudential requirements
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Honduras 6 forbid
Hong Kong 6.63 Need authorization based on specified conditions except for grandfather provision acquire existing local bank require approval
Hungary 5.7 forbid at least 2 must be residents
India 3.9 forbid investment in existing bank can't exceed 10% of owned funds or 30% of capital of the existing bank, whichever is lower
Indonesia 3.93 Forbid, except for grandfather provision 49% except for grandfather provision
Israel 9.7 at least 2 must be residents
Jordan 10 Permit
Kenya 7.2 Need authorization
Korea 5.19 Permit Ceiling is 4%,but 15% for provincial banks limited
Kuwait 3.24 Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 40%
Macau 9.7 Permit at least 3 directors and 2 of them must be residents in Macau
Macedonia 9.2 Permit no later than 2008
Malaysia 1.32 Forbid Ceiling is 20%. To acquire more than 5%, banks must match specified criteria 30%
Malta 3 Need authorization based on economic demand test equity participation need authorization equity participation need authorization
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Mauritius 7.2 Need authorization based on economic demand test
Mexico 5.49 Permit 5%, or 20%with authorization 40%,effective control by Mexican shareholders is required
Moldova 7.2 Need authorization
Morocco 8.8 Permit Limitation on the participation of foreign capital in the capital of the large existing bank which would lead to takeover
Nicaragua 7.2 Need authorization based on economic demand test
Nigeria 10 Permit
Oman 6.1 Permit 35%
Pakistan 4.08 license required based on the same criteria applicable to domestic banks More than 5% need authorization 49%
Peru 5.31 Need authorization based on economic demand test More than 10% need authorization
Philippines 5.66 Need authorization based on public interest and listed conditions 51% in new established bank; 30% or 40% with authorization in existing bank
Poland 10 Permit
Saudi Arabia 7.6 Permit 60%
Singapore 5.35 Permit 5% 40%
Slovak 5.3 Need authorization based on criteria of profession equity participation in existing bank need authorization equity participation in existing bank need authorization
Sri Lanka 4.14 Need authorization based on economic demand test 49%
Thailand 3.03 Need authorization 5%, but may be relaxed 25%,may be relaxed. factoring and credit card business is 49% At least 75% of the directors is Thai nationality
Member Index Summary of ownership limitations
Branches establishing Individual foreign share limit Aggregate foreign share limit Foreign  director limit
Tunisia 5.7 Need authorization 50% in existing bank
Turkey 6.68 Need authorization acquisition or transfer of shares equal or higher than 5%,20%,33%,50% require approval
United Arab Emirates 2.94 Unbound 49%
Uruguay 5.8 Need authorization
Venezuela 7.2 Need authorization based on economic demand test
Zimbabwe 7.6 60%
Member Summary of asset or transaction scale limitation Score
Aggregate scale Individual scale
Chinese Taipei Foreign banks are subject to per client foreign currency credit extension limit of 25% of the net worth of their head office; and per client New Taiwan dollar credit extension limit of 10% of the total balance of New Taiwan dollars credit extension or one billion New Taiwan dollars, whichever is higher. 8.75
Malaysia foreign controlled banking institutions[16] in Malaysia are allowed to extend credit facilities, including factoring and leasing up to a maximum of 40% of the total credit facilities obtained by non-resident controlled companies from banking institutions. The limitation will be relaxed to 50% in the year 2000. 9.38
Pakistan bound for the total volume of foreign banks' assets in Pakistan and total volume of deposits mobilized by foreign bank on Dec 12 1997 7.5
Philippines 70% total assets of banking system must be held by domestic banks which are at least majority-owned by Filipinos. 7.5
Singapore local currency loan to residents shall not exceed S$200m 9.39
South Africa branches must maintain a minimum balance of R 1 million on the deposit accounts of natural persons 9.38
Tunisia all non-resident banks established in Tunisia as a whole, 1.5% of the deposits of deposit banks. funds from residents received by non-resident bank established in Tunisia must not exceed its share of equity of resident enterprises 8.94
Turkey lending limit of foreign bank branch is based on branch capital 9.38
Member Summary of establishment scale limitation Score
Sub-branching Office ATM network
Bahrain Unbound for sub-branching of foreign bank branch 7.5
Brazil Need authorization except grandfather provision 6.8
China gradually remove geographic restriction within 5 years after accession 9.7
Hong Kong No more than 3 offices for branch Only in office 7.3
India Need authorization 8.6
Indonesia Only one sub-branch Only set up in 8 designated cities 4
Malaysia Unbound Unbound 5
Oman In capital of Oman, sub-branches are limited to 4 8.5
Pakistan 3 6.5
Philippines No more than 6 sub-branches for foreign bank branch 3 at locations of own choices and 3 at designated locations 8.4
Qatar 8 9
Singapore Forbid new sub-branch Only one in designated location Only in office 0.5
Thailand For foreign bank branch: only joining ATM pools operated by Thai banks or within own premises or sharing the facilities with other commercial banks in Thailand 8.8
Turkey Need authorization 6.5
Member Index Position unavailable for non-residents Summary of employment limitation
CEO Senior manager 15% of the staff More than 15% of the staff
Bolivia 9 the number of foreign employees may not exceed 15% of the staff
Chile 9 the number of foreign employees may not exceed 15% of the staff
Georgia 9 at least one manager with his domicile in George
Hong Kong 6 CEO must be resident
India 9 Must constitute local advisory boards consisting of professionals and experts in small-scale industry and exports. The chairman and members of the board must be resident Indian nationals
Indonesia 4 for branch, only executive position can be assumed by expatriates
Lithuania 8 at least one manager must be Lithuanian citizen
Macau 7 For branch, CEO must be resident
Panama 9 Foreign technical employees may not exceed 15% of the total workforce.
Poland 8 at least one executive must be Poland national
Thailand 7 Ceiling of foreign employees is 8.[17]
Venezuela 8 no less than 50% of the administrative board of bank must reside in Venezuela.
 
Resource:  author compiled.         means unavailable for non-residents;         means partially unavailable for non-residents.
Member Sub-sector Index Subsidy Tax
Bahrain All 0 Unbound Unbound
Brazil 81116,8113 8 National treatment National treatment
Chile 81115-81119 81131,81139 7.5 National treatment National treatment
Costa Rica 81115-81119 5 National treatment National treatment
Dominican Republic 81115-81119 81131-81133 5 Unbound for 81131-81133 Unbound for 81131-81133
El Salvador 81116,81119 81131-81133 0 Unbound Unbound
Gabon 8113 5 National treatment National treatment
Ghana All 8.5 Government support bank located in rural area National treatment
Honduras 81116,81119 81132-81139 7.5 National treatment National treatment
Hungary All 5 Unbound National treatment
Jamaica 81115,81116 8113 9 National treatment National treatment
Jordan All 5 Unbound National treatment
Kenya All 0 Unbound Unbound
Korea 81115,81116 8113 9 National treatment National treatment
Kuwait All 0 Unbound Unbound
Lithuania All 8 eligibility of subsidies maybe limited to legal persons within the territory of Lithuania National treatment
Nicaragua All 8.5 National treatment Tax rate of payment of dividends to foreigners is 5%, tax of interest payment abroad is 30%
Oman All 7 National treatment bank with more than 70% foreign equity should pay higher rate income tax
Saudi Arabia All 6 National treatment income tax to foreign bank
Tunisia 81115,81116 81131-81133 4.75 National treatment only for resident banks in 81115,81116,81132,81133; National treatment for 81131 National treatment only for resident banks in 81115,81116,81132,81133; National treatment for 81131
United Arab Emirates All 2 may offer subsidy to nationals foreigners may be required to pay direct tax on income
Uruguay 81115,81116 81132,81133 6.5 National treatment National treatment
Venezuela 81115,81116 81131-81133 8 National treatment National treatment
 
Member Index of trade freedom Index of institution setting freedom Index of segmental market freedom Index of ownership freedom Index scale freedom Index of employment freedom Index of subsidy & tax national treatment
Albania 10 10 10 10 10 10 10
Antigua & Bermuda 0 0 0 0 0 0 0
Argentina 10 10 10 10 10 10 10
Armenia 9.83 10 9.3 10 10 10 10
Bahrain 1.96 3 0 2.67 3.75 0 0
Barbados 0 0 0 0 0 0 0
Belize 0 0 0 0 0 0 0
Bolivia 9.95 10 10 10 10 9 10
Botswana 0 0 0 0 0 0 0
Brazil 6.63 5 6.8 7.2 8.4 10 8
Brunei Darussalam 0 0 0 0 0 0 0
Bulgaria 7.05 5 10 4.01 10 10 10
Cameroon 0 0 0 0 0 0 0
Chile 5.81 3 7.5 5.31 10 9 7.5
China 7.15 7 7.41 4.3 9.85 10 10
Chinese Taipei 8.54 8.5 8.89 7.01 9.38 10 10
Colombia 6.23 1.5 10 6 10 10 10
Congo 0 0 0 0 0 0 0
Costa Rica 5.95 5 5 6 10 10 5
Cote d'lvoire 7.45 5 10 6 10 10 10
Croatia 10 10 10 10 10 10 10
Cuba 6.38 3 10 4.14 10 10 10
Czech Republic 6.59 3 9.25 6.15 10 10 10
Dominica 0 0 0 0 0 0 0
Dominican Republic 5.88 3 9 4.14 10 10 5
Ecuador 6.75 3 10 6 10 10 10
Egypt 7.05 6.5 6.85 5.31 10 10 10
El Salvador 0.45 0 0 2.5 0 0 0
Estonia 9.13 10 6.5 10 10 10 10
Fiji 0 0 0 0 0 0 0
Gabon 8.5 10 5 10 10 10 5
Ghana 7.13 3.5 10 7.4 10 10 8.5

        


Table A-8 summary of index of trade freedom-continued

Sector Mode 1 Mode 2 Mode 3 Mode 4
banking 0.2 0.1 0.6 0.1
 
Limitation Score
No new entry or unbound for new entry  0.1
Discretionary licensing for new entry 0.25
Ceiling on foreign equity at less than 50% 0.5
Ceiling on foreign equity at more than 50% 0.75
Restrictions on the legal form of commercial presence 0.75
Other minor restrictions 0.75
 
Cross-border supply Consumption abroad Commercial presence
Deposits 0.12 0.03 0.85
Lending 0.2 0.05 0.75
Limitations Scores
No listing 0
Unbound against relevant mode 0.05
No new entry or unbound for new entry  0.1
Discretionary licensing, economic needs test 0.25
Limited commitments 0.25
Reciprocity 0.25
Licensing and / or authorization requirements (by ministry of finance or government); acquisition approval without mentioning terms, conditions, or procedures 0.3
Licensing and / or authorization requirements by supervisor (central bank, other regulator); acquisition approval with clear indications and guiding principles (laws, rulings,etc) 0.35
Voting or ownership < 50% 0.5
Limitation on legal form, number of operations (branches), ownership > 50%, types of operations (branches versus subsidiaries), value of transactions or assets 0.75
None 1
 
Core service Definition Classification
CPCprov code Explanatory note
Deposit service Acceptance of deposits and other repayable funds from the public 81115 Wholesale deposit services:Services consisting in large-scale deposit-taking, particularly from other financial institutions
81116 Other bank deposit services: Bank deposit services for persons, companies, etc.
81119 Other deposit services: Non-bank deposit services for persons, companies, etc.
Credit service Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction 81131 Mortgage loan services: Services consisting in granting loans for which specific assets in land and buildings are used as security.
81132 Personal instalment loan services: Services consisting in granting consumer credit especially to finance current expenditure on goods and services.
81133 Credit card services: Services consisting in financing the purchase of products by granting point-of-sale credit using plastic cards or tokens.
81139 Other credit services: Services consisting in other lending by institutions not involved in monetary intermediation.
 
Sectors CPCprov code Sub-sector Weights
Deposit (weights 0.5) 81115 Wholesale deposit service 0.2
81116 Other bank deposit service 0.6
81119 Other deposit service 0.2
Credit (weights 0.5) 81131 Mortgage loan services 0.3
81132 Personal installment loan services 0.25
81133 Credit card services 0.25
81139 Other credit services 0.2
 
Categories Weights Entry in GATS16(2 Explanatory note
Institution establishing limitation 0.35 a,e Limit on institution setting in domestic market by foreign banks. Legal form are often distinguished.
Segmental market limitation 0.25 b,c Limit on segmental market access in a sub-sector. market is often segmented by customers, currency, etc.
Ownership limitation 0.2 f,e Limit on ownership of institutions set by foreign banks in domestic market.
Scale limitation 0.1 b,c Limit on scale of assets and establishment
Employment limitation 0.05 d Limit on citizenship of senior managers or clerks
Subsidy & tax treatment limitation 0.05 / Exception on national treatment of subsidies and taxes.
 
-    weight of sub-sector i
-    weight of category j
-    weight of sub-category k
-    score of a particular measure
measures score
Forbid establishing joint venture banks or branches 0
No new licenses 0.5
Number limit 4
Only permit investing in existing banks instead of establishing new joint venture banks 6
Specify qualification or condition to establish joint venture banks or branches 7
None 10
 
Dimension Weight
Citizenship of customers Resident natural person 0.35
Resident legal person 0.35
Non-resident 0.3
Type of currency Local currency 0.7
Foreign currency 0.3
Legal form of providers Joint venture banks 0.5
branches 0.5
 
measure score
forbid entrance 0
authorization Coefficient 0.3
Restrict qualification of providers 7
Restrict transaction conditions 8
 
Member Coverage Member Coverage Member Coverage
Albania All Gabon 8113 Nicaragua All
Antigua & Bermuda Nothing Ghana All Nigeria All
Argentina All Georgia All Oman All
Armenia All Grenada Nothing Pakistan All
Bahrain All Guatemala Nothing Panama All
Barbados Nothing Guyana All Papua New Guinea All
Belize Nothing Honduras 81116,81119 81132-81139 Paraguay All
Bolivia All Hong Kong All Peru All
Botswana Nothing Hungary All Philippines All
Brazil 81116,8113 India All Poland All
Brunei Darussalam Nothing Indonesia All Qatar All
Bulgaria All Israel All Romania All
Cameroon Nothing Jamaica 81115,81116 8113 St. Christopher & Nevis Nothing
Chile 8115-81119 81131,81139 Jordan All St. Lucia Nothing
China All Kenya All St. Vincent & the Grenadines Nothing
Chinese Taipei All Korea All ex.81119 Saudi Arabia All
Colombia All Kuwait All Singapore All
Congo Nothing Kyrgyz All Slovak All
Costa Rica 81115-81119 Latvia All South Africa All
Cote d’lvoire All Lithuania All Sri Lanka All
Croatia All Macau All Suriname Nothing
Cuba All Macedonia All Swaziland Nothing
Czech REP All Malaysia All Thailand All
Dominica Nothing Malta All Trinidad & Tobago Nothing
Dominican Republic All ex.81139 Mauritius All Tunisia 81115,81116 81131-81133
Ecuador All Mexico All Turkey All
Egypt All Moldova All United Arab Emirates All
El Salvador 81116-81119 81131-81133 Mongolia All Uruguay 81115,81116 81132,81133
Estonia All Morocco All Venezuela 81115,81116 81131-81133
Fiji Nothing Namibia Nothing Zimbabwe All
 

Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Bahrain Need authorization Joint venture & branch 3
Brazil Need authorization. If participating in privatization of public sector financial institutions, commercial presence is permitted. Joint venture & branch 5
Bulgaria Joint venture & branch 5
Chile Need authorization based on economic demand test Joint venture & branch 3
China foreign banks with total assets of more than US$10 billion can establish joint venture; with total assets of more than US$20 billion can establish branch Joint venture & branch 7
Chinese Taipei to establish branch, foreign bank shall match specified business relation and volume with Taiwan enterprises 3 years before applying Joint venture & branch 8.5
Colombia Need authorization based on economic demand test Joint venture & branch 1.5
Costa Rica Only joint venture 5
Cote d’lvoire Only joint venture 5
Cube Need authorization Joint venture & branch 3
Czech Need authorization Joint venture & branch 3
Dominican Republic Need authorization based on economic demand test Joint venture & branch 3
Ecuador Only through acquire share of existing banks. No new bank is permitted 3
Egypt Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Ghana need licence based on prudential requirements 3.5
Honduras Need authorization based on economic demand test Only joint venture 1.5
Hong Kong Need authorization based on specified criteria except for grandfather provision Joint venture & branch 4.2
Hungary Only joint venture 5
India a limit of 12 licenses per year both for new and existing banks. licenses may be denied when the maximum share of assets in India both on and off balance sheet of foreign banks to total assets both on and off balance sheet of the banking system exceeds 15%. Only branch 2
Indonesia Unbound for new licenses Only joint venture except grandfather provision 1
Jordan Joint venture & branch 10
Kenya Need authorization 3
Korea Joint venture & branch 10
Kuwait Foreign banks in which Kuwait government or Kuwait banks are shareholders may entry under authorization 2.1
Macau Joint venture & branch 10
Member Summary of measure of institution setting limit Index
Measure Legal form of institutions
Macedonia Joint venture. branch( no late than 2008) 9
Malaysia Only through acquire share of existing banks. No new bank is permitted Forbid branch 3
Malta Need authorization based on economic demand test Joint venture & branch 3
Mauritius Need authorization based on economic demand test 3
Mexico 10
Moldova Need authorization Joint venture & branch 3
Morocco Joint venture & branch 10
Nicaragua Need authorization based on economic demand test Joint venture & branch 3
Nigeria Joint venture & branch 10
Oman Joint venture & branch 10
Pakistan license required based on the same criteria applicable to domestic banks Only joint venture except for grandfather provision 2.75
Peru Establishing branch need authorization based on economic demand test Joint venture & branch 6.5
Philippines Need authorization based on public interest and listed economic condistions Joint venture & branch 3.5
Poland Joint venture & branch 10
Saudi Arabia Joint venture & branch 10