Central bank approves Visa subsidiary application to establish bank card clearing institution

The People's Bank of China, China's central bank, has approved an application from a subsidiary of Visa to set up a bank card clearing institution in China.

Visa Information Technology (Beijing) Co Ltd is required to complete its preparations and apply to commence operations within a year, PBOC said on Tuesday.

The bank card clearing business license will be issued after the PBOC and the National Financial Regulatory Administration jointly approve the application.

The move is seen as a step forward in the country's financial opening up. "The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitment to China," said Ryan McInerney, CEO of Visa.