Questionnaire for Financial Services Assessment 1

Questionnaire for financial services assessment 1

Retail Banking: Entry & Establishing a Commercial Presence

A foreign bank (e.g., HSBC) wishes to enter and establish a commercial presence in the domestic market. A foreign bank intends to provide services including acceptance of deposits and lending to consumers. What are the barriers to entry and operation that it faces?

Is entry of banks with foreign If foreign entry is not allowed, why? ownership and/or control allowed?

Retail No Yes Explicitly prohibited by law or policy – Please explain: Banking Although not legally prohibited, the government is not granting concessions or licenses to foreign

firms at this time – Please explain: Other – Please explain:

Additional notes for the section:

1 This questionnaire reproduces the “Survey on Impediments to International Integration” developed for the Services Trade Restrictiveness Index.

1 Retail Banking: Entry & Establishing a Commercial Presence (Continued)

If foreign entry is allowed, what are the conditions and restrictions for establishing a commercial presence? Greenfield investment Entry through acquisition or joint venture Retail Banking 1. Are foreign 2. Are foreign 3. Can foreign banks 4. Can foreign 5. What is 6. What is the 7. Can a foreign banks banks permitted enter the market by banks enter the the maximum aggregate bank acquire the permitted to to enter as a acquiring part or all of a market by maximum foreign investment controlling stake? enter as a locally local bank that is: creating a joint ownership permitted in a single branch?2 incorporated venture with a permitted local bank? subsidiary?3 local bank? to be held by a single foreign bank? No Yes No Yes Private? No Yes In a local If the local bank is In a local private private private: bank: No Yes bank: What is the [%] No Yes maximum foreign State-owned? [%] ownership If the local bank is In a local state- permitted in the No Yes In a local state-owned: state- owned bank: subsidiary? [%] owned No Yes [%] bank: In a joint venture: If the [%] [%] In a joint venture: conditions/restricti ons differ In a joint If the No Yes depending on the venture: conditions/restriction s differ depending on legal form of the [%] entity, please the legal form of the explain: If the entity, please explain: conditions/r estrictions differ

2 In this case, the branch would be their primary form of establishment.

3 In this case, the subsidiary would be their primary form of establishment.

2 depending on the legal form of the entity, please explain:

Additional notes for the section:

Retail Banking: Categorization of Foreign and Domestic Firms

Once a firm enters the domestic market, when is it considered “foreign” and thus subject to separate provisions of law or policy? What Retail is the threshold for foreign ownership or control? Please explain. Banking

3 Retail Banking: Obtaining a License

Transparency and national Allocation of licenses if the number of licenses is limited 1. Is a license treatment or a permit required to establish a 2. Are the criteria that a 3. Does 4. Do the licensing criteria 5. Is the 6. How are the licenses 7. Does this commercial firm must fulfill to obtain a the differ between foreign and numbe allocated? restriction apply presence in license publicly available? fulfill domestic banks? r of only to foreign the domestic ment licenses banks? market? of the limited publicl ? y availa ble criteri a ensure that a license is grante d?

Retail No No – Please explain: No No No First come, first served No Banking – Yes Yes Please Yes – Please explain: Yes Through a competitive Yes explain tender If yes, : If yes, complete the answer At the discretion of the row. Yes the followi relevant authority ng Other - please specify: questio ns: What is the limit,

4 and how is it determi ned?: If a fixed number of licenses are availabl e, specify the number:

Additional notes for the section:

5 Retail Banking: Obtaining a License (Continued)

8. Who issues licenses/permits? 9. Do 10. If a license/permit needs 11. Is the issuing authority 12. Is the issuing license to be renewed, how is it required by law to inform authority obliged by s/perm done? applicants for initial/renewal law to inform its licenses of decisions on their applicants of the need to applications within a certain reasons for rejection of be number of days upon receiving a license? renewe them? d after a fixed period ?

Retail Please specify: No Automatically No No Banking Yes By application Yes Yes

If yes, If by application, what are the If yes, specify the number of days: If yes, please give how renewal conditions? details: often? Please specify:

Additional notes for the section:

6 Retail Banking: Regulation of the Sector

4. Are there procedures 5. Are there procedures 1. Is there a 2. Is the regulatory authority 3. Does the regulatory that give banks prior in place that allow banks regulatory authority established by statute as a authority have a legal notice of and allow them to appeal regulatory for the sector? body independent from: duty of impartiality? to comment on proposed decisions? regulatory changes?

No Yes The sector ministry? No Yes No Yes No Yes Retail No Yes Banking If yes, what is the name Please give details: If yes, please give details: If yes, please give details of the regulatory (e.g., to whom can appeals The sector’s trade authority? be made?): association or professional association? No Yes

If the answer is no for either, please explain the relationship:

Additional notes for the section:

7 Retail Banking: Operating Conditions

No Yes 1. Are foreign banks permitted to transact in local currency?

2. Are there restrictions on the repatriation of earnings by foreign banks? No Yes If yes, please provide details:

3. Are foreign banks permitted to raise capital domestically? No Yes

4. Do foreign banks have access to the Central Bank’s discount window? No Yes

5. Do foreign banks have access to the main payments system? No Yes

6. Do foreign banks have access to deposit insurance schemes? No Yes

7. Are there requirements that a certain number or percentage of employees in a bank must be nationals?

If yes, please specify the percentage or number required, and whether the quota is for each bank or the entire sector: No Yes Are the requirements different for domestic and foreign firms? No Yes - Please explain:

8. Are there requirements that a certain number or percentage of the management or board of directors of a bank must be nationals?

If yes, please specify the percentage or number required: No Yes Are the requirements different for domestic and foreign firms? No Yes - Please explain:

9. Is there a limit on the number of branches that a foreign bank which is commercially established in the country is permitted to set up? If yes, what is the maximum number of branches permitted to each foreign bank? No Yes Are these requirements different from those for domestic banks? No Yes - Please explain:

10. Is there a limit on the number of automatic teller machines (ATMs) that a foreign bank which is commercially established in the country is No Yes permitted to set up? If yes, what is the maximum number of ATMs permitted to each foreign bank?

8 Are these requirements different from those for domestic banks? No Yes - Please explain:

11. Are there ways in which foreign and domestic banks are treated differently which have not been mentioned so far? No Yes If yes, please give details:

Additional notes for the section:

9 Retail Banking: Cross-Border

A foreign bank (e.g., HSBC) established in another country wishes to supply certain services across borders into the domestic market from outside the country. What are the barriers to entry and operation that it faces?

2. If regulated, 1. Is cross-border supply of services is a domestic regulated in your country? If yes, please firm allowed to specify the name and date of the policy obtain the 3. If cross-border services are allowed, 4. Do the following apply to and regulation. following what are the conditions and the conditions and services from a restrictions? (Check all that apply.) restrictions? foreign bank located outside the country? Bank Loans No, it is not regulated Allowed Domestic firm/consumer must Are conditions pre-established? demonstrate a lack of domestic No Yes Yes, it is regulated, if yes, please Not allowed availability of the desired service - specify: Explain how this is shown. Is there a If no, please elaborate: prescribed method of proof?: Are conditions publicly Length of the loan – Specify the available? If regulated, please respond to the following questions. length: No Yes Size of the loan – Specify the size: If no, please elaborate:

Are conditions consistently Interest rate – Specify the rate: applied? No Yes Sector of the domestic firm using the If no, please elaborate: service – Please specify: Other – Please explain:

None

10 2. If regulated, 1. Is cross-border supply of services is a domestic regulated in your country? If yes, please firm allowed to specify the name and date of the policy obtain the 3. If cross-border services are allowed, 4. Do the following apply to and regulation. following what are the conditions and the conditions and services from a restrictions? (Check all that apply.) restrictions? foreign bank located outside the country? Bank Deposits No, it is not regulated Allowed Domestic firm/consumer must Pre-established? demonstrate a lack of domestic No Yes Yes, it is regulated, if yes, please Not allowed availability of the desired service - specify: Explain how this is shown. Is there a If no, please elaborate: prescribed method of proof?: Publicly available? Size of the deposit – Specify the size: If regulated, please respond to the following No Yes questions. Interest rate earned – Specify the rate: If no, please elaborate:

The currency deposited – Specify: Consistently applied? No Yes Sector of the domestic firm using the

service – Please specify: If no, please elaborate: Other – Please explain:

None

Asset No, it is not regulated Allowed Domestic firm/consumer must Pre-established? Management demonstrate a lack of domestic No Yes Yes, it is regulated, if yes, please Not allowed availability of the desired service - Explain how this is shown. Is there a If no, please elaborate:

11 2. If regulated, 1. Is cross-border supply of services is a domestic regulated in your country? If yes, please firm allowed to specify the name and date of the policy obtain the 3. If cross-border services are allowed, 4. Do the following apply to and regulation. following what are the conditions and the conditions and services from a restrictions? (Check all that apply.) restrictions? foreign bank located outside the country? specify: prescribed method of proof?: Publicly available? Type of investment – Specify the type: No Yes If regulated, please respond to the following questions. If no, please elaborate: Total value of the portfolio – Specify Consistently applied? the value: No Yes Interest rate earned – Specify the rate: If no, please elaborate: Sector of the domestic firm using the

service – Please specify: Other – Please explain:

None

Additional notes for the section:

12 Insurance Services: Entry & Establishing a Commercial Presence

A foreign insurance firm (e.g., AIG) wishes to establish a commercial presence in the domestic market. What are the barriers to entry and operation that it faces?

Is entry of insurance firms with foreign ownership and/or control If foreign entry is not allowed, why? allowed?

No Yes Explicitly prohibited by law or policy – Please explain: Automobile Insurance Although not legally prohibited, the government is not granting concessions or licenses to foreign firms at this time – Please explain: Other – Please explain:

Life No Yes Explicitly prohibited by law or policy – Please explain: Insurance Although not legally prohibited, the government is not granting concessions or licenses to foreign

firms at this time – Please explain: Other – Please explain:

Reinsuranc No Yes Explicitly prohibited by law or policy – Please explain: e Although not legally prohibited, the government is not granting concessions or licenses to foreign

firms at this time – Please explain: Other – Please explain:

Additional notes for the section:

13 Insurance Services: Entry & Establishing a Commercial Presence (Continued)

If foreign entry is allowed, what are the conditions and restrictions for establishing a commercial presence?

Greenfield investment Entry through acquisition or joint venture

1. Are foreign 2. Are foreign firms 3. Can a foreign 4. Can a foreign 5. What is the 6. What is the 7. Can a insurers permitted to enter as firm enter the firm enter the maximum maximum foreign firm permitted to a locally incorporated market by market by ownership aggregate foreign acquire the enter as a subsidiary?5 acquiring part creating a joint permitted to investment controlling branch?4 or all of a local venture with a be held by a permitted in a stake? firm that is: local firm? single foreign single local firm? firm? No Yes No Yes Private? No Yes In a local If the local firm is In a local private firm: private: private firm: Automobile No Yes Insurance What is the maximum [%] [%] No Yes foreign ownership State-owned? permitted in the In a local If the local firm is In a local state- subsidiary? No Yes state-owned state-owned: firm: owned firm: [%] [%] [%] No Yes If the In a joint venture: In a joint conditions/restrictions In a joint venture: [%] differ depending on the venture: If the legal form of the entity, [%] please explain: conditions/restriction No Yes If the s differ depending on conditions/rest the legal form of the rictions differ entity, please depending on explain: the legal form of the entity, please explain:

4 In this case, the subsidiary would be their primary form of establishment.

5 In this case, the subsidiary would be their primary form of establishment.

14 If foreign entry is allowed, what are the conditions and restrictions for establishing a commercial presence?

Greenfield investment Entry through acquisition or joint venture

1. Are foreign 2. Are foreign firms 3. Can a foreign 4. Can a foreign 5. What is the 6. What is the 7. Can a insurers permitted to enter as firm enter the firm enter the maximum maximum foreign firm permitted to a locally incorporated market by market by ownership aggregate foreign acquire the enter as a subsidiary? acquiring part creating a joint permitted to investment controlling branch? or all of a local venture with a be held by a permitted in a stake? firm that is: local firm? single foreign single local firm? firm? Private? In a local If the local firm is In a local Life No Yes No Yes No Yes private firm: private: private firm: Insurance No Yes What is the maximum [%] [%] No Yes foreign ownership State-owned? permitted in the In a local If the local firm is In a local state- subsidiary? No Yes state-owned state-owned: firm: owned firm: [%] [%] [%] No Yes If the In a joint venture: In a joint conditions/restrictions In a joint venture: [%] differ depending on the venture: If the legal form of the entity, [%] please explain: conditions/restriction No Yes If the s differ depending on conditions/rest the legal form of the rictions differ entity, please depending on explain: the legal form of the entity, please explain:

Private? In a local If the local firm is In a local Reinsurance No Yes No Yes No Yes private firm: private: private firm: No Yes What is the maximum [%] [%] No Yes foreign ownership State-owned? permitted in the In a local If the local firm is In a local state-

15 If foreign entry is allowed, what are the conditions and restrictions for establishing a commercial presence?

Greenfield investment Entry through acquisition or joint venture

1. Are foreign 2. Are foreign firms 3. Can a foreign 4. Can a foreign 5. What is the 6. What is the 7. Can a insurers permitted to enter as firm enter the firm enter the maximum maximum foreign firm permitted to a locally incorporated market by market by ownership aggregate foreign acquire the enter as a subsidiary? acquiring part creating a joint permitted to investment controlling branch? or all of a local venture with a be held by a permitted in a stake? firm that is: local firm? single foreign single local firm? firm? subsidiary? No Yes state-owned state-owned: owned firm: firm: [%] [%] No Yes [%] If the In a joint venture: conditions/restrictions In a joint In a joint differ depending on the venture: [%] venture: legal form of the entity, If the [%] No Yes please explain: conditions/restriction If the s differ depending on conditions/rest the legal form of the rictions differ entity, please depending on explain: the legal form of the entity, please explain:

Additional notes for the section:

Insurance Services: Categorization of Foreign and Domestic Firms

Once a firm enters the domestic market, when is it considered “foreign” and thus subject to separate provisions of law or policy? What is the threshold for foreign ownership or control? Please explain.

Automobile Insurance

16 Life Insurance

Reinsurance

17 Insurance Services: Obtaining a License

Transparency and Allocation of licenses if the number of licenses is limited national treatment 1. Is a 3. Does license or a the permit fulfillme required to nt of the establish a 2. Are the criteria that a 4. Do the licensing 5. Is the 7. Does this publicly commercial firm must fulfill to obtain criteria differ between number of 6. How are the restriction apply available presence in a license publicly foreign and domestic licenses licenses allocated? only to foreign criteria the available? firms? limited? firms? ensure domestic that a market? license is granted? No No – Please explain: No – No No First come, first No Automobile Please served Yes Yes Yes – Please explain: Yes Yes Insurance explain: Through a If yes, Yes If yes, competitive tender complete the answer the row. following At the discretion of questions: the relevant authority What is the limit, and Other - please how is it determined? specify: : If a fixed number of licenses are available, specify the number:

18 Life No No – Please explain: No – No No First come, first No Insurance Please served Yes Yes Yes – Please explain: Yes Yes explain: Through a If yes, Yes If yes, competitive tender complete the answer the row. following At the discretion of questions: the relevant authority What is the limit, and Other - please how is it determined? specify: : If a fixed number of licenses are available, specify the number:

Reinsurance No No – Please explain: No – No No First come, first No Please served Yes Yes Yes – Please explain: Yes Yes explain: Through a If yes, Yes If yes, competitive tender complete the answer the row. following At the discretion of questions: the relevant authority What is the limit, and Other - please how is it determined? specify: : If a fixed number of licenses are

19 available, specify the number:

Additional notes for the section:

20 Insurance Services: Obtaining a License (Continued)

If yes, If by application, what are the If yes, specify the number of days: If yes, please give how renewal conditions? details: often? Please specify:

Life Please specify: No Automatically No No Insurance Yes By application Yes Yes

If yes, If by application, what are the If yes, specify the number of days: If yes, please give how renewal conditions? details: often? Please specify:

21 Reinsurance Please specify: No Automatically No No

Yes By application Yes Yes

If yes, If by application, what are the If yes, specify the number of days: If yes, please give how renewal conditions? details: often? Please specify:

Additional notes for the section:

22 Insurance Services: Regulation of the Sector

4. Are there 1. Is there procedures that give a 2. Is the regulatory 5. Are there procedures 3. Does the regulatory firms prior notice of regulatory authority established by in place that allow firms authority have a legal duty of and allow them to authority statute as a body to appeal regulatory impartiality? comment on for the independent from: decisions? proposed regulatory sector? changes? No The sector ministry? No Yes No Yes No Yes Automobile Insurance Yes No Yes Please give details: If yes, please give If yes, please give details If yes, what details: (e.g., to whom can appeals The sector’s trade is the name be made?): association or professional of the association? regulatory authority? No Yes

If the answer is no for either, please explain the relationship: The sector ministry? Life Insurance No No Yes No Yes No Yes Yes No Yes Please give details: If yes, please give If yes, please give details If yes, what details: (e.g., to whom can appeals The sector’s trade is the name be made?): association or professional of the association? regulatory authority? No Yes

If the answer is no for either, please explain the relationship: The sector ministry? Reinsurance No No Yes No Yes No Yes Yes No Yes Please give details: If yes, please give If yes, please give details

23 If yes, what The sector’s trade details: (e.g., to whom can appeals is the name association or professional be made?): of the association? regulatory authority? No Yes

If the answer is no for either, please explain the relationship: Additional notes for the section:

24 Insurance Services: Operating Conditions

1. Are there restrictions on the repatriation of earnings by foreign firms? No Yes If yes, please provide details: 2. Are insurers in the domestic market obliged to cede a certain percentage of their insurance to a domestic re-insurer before offering it elsewhere? No Yes If yes, please specify %: 3. Are there requirements that a certain number or percentage of employees in a firm must be nationals?

If yes, please specify the percentage or number required, and whether the quota is for each firm or the entire sector: No Yes Are the requirements different for domestic and foreign firms? No Yes - Please explain:

4. Are there requirements that a certain number or percentage of the management or board of directors of a firm must be nationals?

If yes, please specify the percentage or number required: No Yes Are the requirements different for domestic and foreign firms? No Yes - Please explain:

5. Are there ways in which foreign and domestic firms are treated differently which have not been mentioned so far? No Yes If yes, please give details:

Additional notes for the section:

25 Insurance Services: Cross-Border

A foreign insurance firm (e.g., AIG) established in another country, wishes to supply life insurance and automobile insurance cross-border to local firms. What are the barriers to entry and operation that it faces?

2. If 1. Is cross-border supply of services regulat regulated in your country? If yes, ed, is a please specify the name and date of the domest policy and/or regulation. ic firm allowe d to obtain the followi 4. Do the following 3. If cross-border services are allowed, what are the ng apply to the conditions conditions and restrictions? (Check all that apply.) service and restrictions? s from a foreign firm located outside the countr y? No, it is not regulated Firm must demonstrate domestic unavailability of Are the conditions pre- established? Automobile Allowe the desired service - Explain how this is shown. Is there Yes, it is regulated. Please specify: Insurance d a prescribed method of proof?: No Yes Not Term of the insurance policy – Specify the term: If no, please elaborate: If yes, please answer the following allowed Value of the insurance policy – Specify the value: Are the conditions questions. publicly available? Sector of the domestic firm using the service – No Yes

Please specify: If no, please elaborate:

26 Other – Please explain: Are the conditions consistently applied? None No Yes

If no, please elaborate:

No, it is not regulated Firm must demonstrate domestic unavailability of Pre-established? Life Insurance Allowe the desired service - Explain how this is shown. Is there No Yes Yes, it is regulated. Please specify: d a prescribed method of proof?: If no, please elaborate: Not Term of the insurance policy – Specify the term: Publicly available? If yes, please answer the following allowed questions. Value of the insurance policy – Specify the value: No Yes

Sector of the domestic firm using the service – If no, please elaborate: Please specify: Consistently applied? Other – Please explain: No Yes

None If no, please elaborate:

Firm must demonstrate domestic unavailability of Pre-established? Reinsurance No, it is not regulated Allowe the desired service - Explain how this is shown. Is there No Yes (ceded by an d a prescribed method of proof?: insurer in the Yes, it is regulated. Please specify: If no, please elaborate: domestic Not Insurers are obliged to cede a certain percentage of market to a Publicly available? reinsurer allowed their insurance to a domestic re-insurer before offering No Yes located abroad) If yes, please answer the following it elsewhere – Specify the percentage: questions. Other – Please explain: If no, please elaborate:

None Consistently applied? No Yes

27 If no, please elaborate:

Additional notes for the section: