Reuters: Regulatory News: UPDATE 1-Fed OKs China-controlled banks as holding companies

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UPDATE 1-Fed OKs China-controlled banks as holding companies May 9th 2012, 19:03 Wed May 9, 2012 3:03pm EDT WASHINGTON May 9 (Reuters) - The Federal Reserve on Wednesday announced a series of approvals for some of China's biggest government-controlled banks to set up bank holding companies and expand existing operations in the United States. The U.S. central bank said Industrial and Commercial Bank of China Ltd, the biggest bank in China and 70.7 percent owned by the government of China, could become a bank holding company. ICBC has total assets worth $2.5 trillion. The Fed also approved an application by China Investment Corp, which is an investment vehicle through which the Chinese government invests its foreign exchange reserves, to become a holding company. It also said Central Huijin Investment Ltd, which is controlled by CIC, was approved to become a holding company. The Fed said the three Chinese banks will become bank holding companies by acquiring up to 80 percent of the voting shares of the The Bank of East Asia (U.S.A.), which currently operates 13 branches in New York and California and engages in retail and commercial banking. In other decisions, the Fed approved a bid by the third largest Chinese bank, Bank of China Ltd., to expand its U.S. presence by setting up a branch in Chicago. It already has two branches in New York and a limited branch in Los Angeles. It is 71 percent-owned by the Chinese government. Bank of China has assets of $1.87 trillion. The fourth largest bank in China, Agricultural bank of China Ltd/., was given Fed approval to set up a branch in New York. It is 83 percent-owned by the government of China and has assets of $1.85 trillion. Link this Share this Digg this Email Reprints

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