Business

Saturday November 21, 2009

China’s ICBC gets banking licence via bilateral deal


KUALA LUMPUR: China’s biggest commercial bank, Industrial and Commercial Bank of China Ltd (ICBC), became the first foreign bank to win a banking licence in Malaysia through a bilateral arrangement.

Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said the licence, which was approved by the Finance Minister, was not part of the new commercial banking licences to be awarded under the liberalisation initiative announced on April 27.

“This licence is, therefore, part of a very limited number of banking licences that Malaysia may issue from time to time under a bilateral arrangement,’’ she told a press conference yesterday.

The licence awarded to ICBC came following the bilateral agreements signed between China Banking Regulatory Commission and Bank Negara, as well as by the governments of Malaysia and China earlier this year.

Two-way trade between Malaysia and China reached US$39.06bil in 2008, an increase of 10.3% compared with 2007.

Meanwhile, Zeti said Bank Negara continued to receive applications from banks for licences to operate in the country.

The closing date for three new licences reserved for world-class financial institutions under the liberalisation plans is Dec 31.

Zeti said Bank Negara would take a few months to consider all applications and expected the results to be announced in the first half of next year.

In April, Prime Minister Datuk Seri Najib Tun Razak said the Government would issue up to nine new bank and insurance licences between this year and 2011 as part of efforts to liberalise the sector and encourage foreign direct investment.

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