The Brazilian Central Bank Wednesday authorised ICBC do Brasil Banco Múltiplo S.A., a subsidiary of the Industrial and Commercial Bank of China (ICBC), China’s largest bank, to start operating in Brazil.
ICBC do Brasil will offer retail and investment banking services, as well as working in the foreign exchange market.
The subsidiary will have its headquarters in Sao Paulo and starting capital of 202.1 million reals.
The ICBC was the first Chinese bank to operate in Argentina, and at the time the bank showed interest in expanding to other countries in the region, such as Brazil and Peru. Since then the Chinese bank has expanded its business in Latin America. Just over a year ago the bank acquired 80 percent of the Argentinean operations of South Africa’s Standard Bank for US$600 million.
China is Brazil’s biggest trading partner and two-way trade in 2012 is expected to total US$95 billion, which is a rise of 40 percent against 2009.
A statement from the ICBC said that economic relations between China and Brazil were full of potential for financial businesses, especially at a time when Brazil is preparing to host the Soccer World Cup in 2014 and the Olympic Games in 2016.
In 2013 the Bank of Brazil is also expected to open a subsidiary in Beijing and its request ahs already been authorised by the Chinese government. (macauhub)