TIn contrast to the older set of regulations, the new law places additional demands on foreign
companies. For example, Chapter II (Establishment and Registration) holds that wholly foreign-owned and joint venture banks and financial companies shall be under the supervision of the responsible authorities at the local or county level where the applicant is located, while at the same time setting forth precautionary conditions handed down from the state level by the People's Bank of China.

Chapter III (Scope of Business Operations) also contains variations that are important to foreign
funded financial institutions. Most noteworthy is that there is no longer emphasis placed on foreign exchange business. This indicates an easing of restrictions on foreign financial companies being involved in RMB transactions. For example, Article 17 item 10 allows foreign or joint venture banks to enter into the previously restricted area of issuing bank cards. Article 18 allows wholly foreign-owned financial companies to attract deposits (of no less than 1 million yuan or the sum of freely convertible currency equivalent to 1 million yuan, with a deposit term of no less than three (3) months). The Regulations do require that the geographic area and range of customers for which a foreign funded bank will be targeting for RMB business shall be approved by the People's Bank of China.

──Monica Jiang