BEIJING -- Chinese mainland citizens may be able to open RMB accounts at subsidiary banks of the Hong Kong and Shanghai Banking Corporation (HSBC), Citibank, Standard Chartered Bank and the Bank of East Asia next month.

An official with the China Banking Regulatory Commission (CBRC) told Xinhua that preparations for the establishment of locally registered subsidiary banks by the above four banks have passed an initial inspection.

Prior to official opening of business, the banks will have to file applications with the CBRC and follow business license registration procedures with the State Administration for Industry and Commerce.

If things go smoothly, the banks will be authorized to operate a full-range of RMB services in early April.

Analysts say that although foreign banks are allowed to adjust their own interest rates within certain ranges, they will not enjoy any preferential policies and must abide by Chinese regulations. They could also be subject to more rigorous examinations before being authorized to grant loans.

Without nationwide networks, the overseas banks were unlikely to pose severe challenges to domestic rivals within the next two years, said Guo Tianyong, an economist from Central University of Finance and Economics.

He estimated that the banks would take five to eight years to establish their business in China, based on the experiences of other countries.

On December 24 last year, the CBRC approved nine overseas banks to prepare for the establishment of China-registered subsidiaries.

The CBRC still hasn't finished initial checks of preparations by the other five banks for the establishment of locally registered subsidiary banks.

Under Chinese law, an overseas bank that plans to operate the full range of RMB business in China must establish a locally registered subsidiary bank with corporate status, otherwise it is permitted only to take term deposits no less than one million yuan.