The total loan balance topped US$30 billion, an annual surge of 41 per cent, while the deposit balance stood at US$17 billion, up 81 per cent every year.

Looking forward to engaging in the renminbi retail business, many of them have included building a local bank for local residents into their China strategy.

"We don't want to be a foreign bank only targeting a small number of wealthy people," said Marc Poirier, China country manager of Societe Generale. "Instead, we would like to be a universal local bank serving all Chinese customers."

The French lender, which boasts outlets in major cities such as Beijing, Shanghai and Wuhan, lost a bidding war among overseas suitors for a stake in the 500-branch Guangdong Development Bank (GDB).

The lender's executives have said that GDB's national outlets were the best platform to run its retailing business, which remained its backbone.

"GDB will be our only investment in a commercial bank for retail banking, consumer finance and credit cards," Poirier said.

Japanese players are also homing in on China. Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ Ltd have received the green light to incorporate in Shanghai.

Tokyo-based SMBC, the third-largest bank in Japan and the eighth-largest bank in the world as of 2006, could be the third Japanese lender to get approval.

In a move that is rare for a Japanese bank, SMBC established its strategic headquarters in Shanghai earlier this month.

The banking regulator is expected to send feedback in two weeks, and foreign players could open their local corporations as early as February.

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