Pakablog!

As an individual, it’s easy: go to any bank, show some identification (ID card or passport would be fine), fill in a few forms (ok, maybe more than a few with certain banks) – and voila, you’re given your non-personalised ATM card within minutes. With this, you can withdraw up to ¥5000 per day from any ATM machine (sometimes the machine limits are lower so will need to withdraw twice) or if you prefer, go to any bank branch and withdraw any amount you want (just bring a briefcase with you since the largest denomination in China ia still ¥100).

Business banking, i’m afraid, is a whole new story. To do anything with your money here is a royal pain in the rear end, and each trip to the bank is a guaranteed hair splitting experience. Each company is limited to a ¥49,000 daily withdrawal limit only (any more and you must explain what you wish to do with the money) – and to do this you must fill in a designated ‘withdrawal slip’ (which you purchase from the bank ; ¥30 for a book of 20). This form must contain the company chop, company finance chop, and signatures of all parties involved, and must be signed/chopped on both sides (why? I don’t know why!)

Chinese banks do not support variable signature instruction (e.g. two out of three signatures), which causes huge inconvenience since one or more directors are frequently not present. In attempting to get our ‘signature instruction’ changed, we found that 13 forms were required. This is no joke (photo enclosed) – why so much duplication is required for a single task is beyond my abilities of comprehension. Of course, after filling in 13 forms, we were informed that we still had to type a cover letter to the bank to inform them that we have filled in forms to action the change.

Previously, we attempted to transfer money from our USD account to RMB. The USD had to be first converted, and then transferred – yes, sounds reasonable, except they couldn’t do it in one go. Again, we needed a cover letter: an application to apply for the application of fund transfer. And of course, there were quite a few accompanying forms there too.

Online banking is not available for business customers, and since there’s no statement mailed to you or passbook either, you’ll just have to keep telephoning or going to the bank for a balance update.

These are only just the tip of the iceberg, but trust me: business banking in China is definitely not a fun experience. It’s a frequent wonder how foreign (or indeed local) firms can put up with the hassles and bureaucracy of the banking system. Although the system is still undergoing reform here, it is clear that there is still a LONG LONG way to go.