China further opened up its banking sector Wednesday, mainly in the west and northeast parts of the country.

According to a bulletin of the China Banking Regulatory Commission (CBRC), beginning today, China will open up Renminbi services to overseas banks in Kunming, capital of southwest China' s Yunnan Province, Beijing, Xiamen, a coastal city in east China's Fujian Province, Xi'an, capital of northwest China's Shaanxi Province, Shenyang, capital of Northeast China's Liaoning Province.

That brings the total number of Chinese cities where overseas banks are authorized to offer services in Renminbi to 18.

The bulletin said foreign banks can send their applications to the CBRC branch in these five cities, which can then transfer directly to the CBRC.

Foreign banks that are approved for the service can operate in the five cities.

Foreign banks who want to set up new branches can send their application to the CBRC directly and the commission will give priority to foreign banks who want to set up branches in west and northeast China, according to the bulletin.

At the same time, the CBRC authorized its branches to check and approve the quality of new chief representatives of branches of foreign banks.

Foreign banks can also be insurance agencies for their original clients after application from January 1, 2005, the bulletin said.

The bulletin said that the further opening of the banking sector goes to meet the promises China made when it entered the World Trade Organization. The regulation change should also push forward economic development in west and Northeast China.