Posted October 24, 2018 10:59:52It’s a big change for Australia, with one of the world’s most innovative economies and a large Asian population.
But the new banks have a huge challenge in filling a gaping hole in the banking system: their clients.
The Chinese banks have been trying to fill this gap by opening up new branches overseas.
“There is a significant gap in Australia’s banking system between the Chinese and Australians,” said the head of Australia’s Financial Services Commission (FSC), Chris White, at the launch of its new digital banking branch at the Central Bank of Australia in Canberra.
“If we are to make it into the global banking system, we have to build a strong infrastructure that allows the Chinese to have access to our financial system.”
This infrastructure, he said, could be the Chinese banking industry’s biggest obstacle to reaching the international financial markets.
The FSC is also proposing a series of changes to Australia’s laws to allow Chinese banks to expand their operations and provide services to Australia.
The reforms, which the FSC expects to be fully implemented by 2019, will also allow China to open up new banking branches in Australia, but the bank has so far refused to move.
The changes will allow Chinese bank customers to use the Australian money services business (AML) to transfer money to the bank, which would then be held in Chinese accounts in Australia.
“The main difference is that we have an AML-based system in Australia that will be used to process money transfers,” Mr White said.
The AML system allows for transactions to be recorded in China and transferred to the Chinese account holders who can then use the money to make transactions.
China has been aggressively building its money-transaction network to meet growing demand from Asian countries.
The country has also been increasing its investments in financial technology and is currently developing its first fully digital payment system.
The new branches will allow the Chinese banks access to the Australian financial system, but only if they can get Australian customers to transfer funds to their accounts.
The introduction of the new branches, however, could also increase the risk of fraud.
In a recent report, the FCS said that the banks have not had enough time to process transactions, but they have been able to “deploy some automated systems” to help manage the risk.
“Our advice is that the risks are still high,” the FSB said in a statement.
Chinese banks are the world leaders in cash transactions, with about a quarter of all money transactions in the world.
The banks have struggled to expand in Australia as they have faced increasing competition from the Asian financial system.
A key part of the problem is that Australian customers are more likely to be using cash, not cheques or credit cards, and they tend to have less experience using online payment systems, which rely on technology and trust to process payments.
Chinese banks also have struggled in recent years to meet the demand from local businesses.
At the start of the year, the Australian government warned Chinese banks about “potential financial risks”.
“China’s domestic and foreign financial institutions, particularly those based in Australia and New Zealand, face substantial challenges in the early stages of their development,” the government said.
“In addition, the growth of overseas financial institutions and the increasing use of China as a global hub have created new risks to their operations in Australia.”