Despite increasing funding constraints, foreign banks operating in China remain confident about their prospects in the Chinese market, said the accounting firm PricewaterhouseCoopers (PwC) in a recent report. It was based on a survey on CEOs and top bankers of 42 overseas banks in China between April and May.

Of the polled foreign banks, 22 expect their China revenues to grow between 20 percent and 50 percent in 2011, and all the respondents believed that their revenues will continue to grow over the next three years.

"Their optimism stems from the continued opening up of the Chinese economy, and its transition toward a convertible currency," said PwC.

In 2010, the 127 foreign banks operating in China commanded combined banking assets of around 1.7 trillion yuan ($261.5 billion), accounting for 1.83 percent of the country's total, compared with 1.71 percent in 2009.

"China's economy may not be expanding as rapidly as in recent years, but it's still growing at a faster rate than the banks' own home markets," said Raymond Yung, financial services leader for PwC China. "With the Chinese Government taking steps to internationalize the yuan, more business opportunities will develop."

Meanwhile, three quarters of the respondents said liquidity tightening had affected their lending, while the impact of the increase in reserve requirements has yet to be felt.

In addition, some banks worry that it will be difficult to attract enough deposits to meet the required loan-deposit ratio of 75 percent.