The Chinese capital began Wednesday to handle applications of foreign banks in the city for running Renminbi (RMB)-dominated business, according to the city's banking watchdog.

"Eligible foreign banks will get license for the business," said Lai Xiaomin, head of the Beijing Municipal Banking RegulatoryCommission.

"The move marks the banking industry in the national capital has entered a new stage of opening to the outside," Lai said.

Beijing is the 14th Chinese city to give foreign banks access to RMB-dominated business since China entered the World Trade Organization (WTO) three years ago. Besides Beijing, four more Chinese cities -- Kunming, Xiamen, Xi'an and Shenyang -- also gavego-ahead to foreign banks for the business on Wednesday, bringing the total number of such cities to 18.

According to the commission, the applicants should have operated in China for at least three years and made profits for two consecutive years before submitting the application, among other conditions.

More than half of the 24 branches of foreign banks in Beijing are qualified for application, according to the commission.

The Beijing branch of the Hong Kong and Shanghai Banking Corporation had submitted application to the commission for RMB-dominated business Wednesday afternoon, Lai said.

"It's a very good chance for us to expand our business and get more clients as we can provide more services to more people," saidDing Guoliang, head of the bank's Beijing branch.

"We has confidence in the Beijing market, and we also need to strengthen cooperation with China banks," he said

At present, foreign banks in Beijing mainly cooperate with Chinese banks in such fields as foreign currency loans and interest-bearing asset storage.

They could expand their cooperation in RMB clearing, RMB short-term loans and other business once the foreign banks are approved to deal in RMB-dominated business, Lai said.

"More cooperation between Chinese and foreign banks will bring about a win-win situation and competing with foreign banks will help Chinese banks further reform their management system and improve services," said Yin Fenglan, head of the Beijing branch ofChina Merchants Bank.

China has promised to the WTO to allow foreign banks to go in for RMB-dominated business in some cities including Beijing beginning Dec. 11 this year.

By October this year, 24 foreign banks had opened branches and 92 foreign financial institutions had set up offices in Beijing. The total assets of the foreign banks amounted to about 6.4 billion US dollars.