Daily News: May 14, 2012

Chinese Banks Get OK to Extend Footprint in U.S.

China Daily is reporting that the U.S. Federal Reserve announced that it had approved a move that would allow three major Chinese State-owned banks to extend their footprint in the country, viewed as a major breakthrough after last week’s bilateral strategic and economic dialogue.

According to China Daily, the Fed approved an application filed by Industrial and Commercial Bank of China, the world’s largest lender by market value. The Fed also approved applications filed by Bank of China, the third-largest Chinese bank by assets, to establish a branch in Chicago, and Agricultural Bank of China, the fourth largest, to establish a branch in New York.

China Daily said under U.S. regulations, a bank holding company may, directly or through subsidiaries, engage in non-banking activity determined by the Fed to be closely related to banking. These activities could include mortgage banking, consumer and commercial finance and loan servicing, leasing, collection agency, asset management, trust company, real estate appraisal, financial and investment advisory activities and certain insurance-related activities.

To read the full text of the China Daily story, click here.