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November 20, 2009 20:25 PM

Malaysia Issues Commercial Bank Licence To ICBC Of China

KUALA LUMPUR, Nov 20 (Bernama) -- Prime Minister cum Minister of Finance Datuk Seri Najib Tun Razak has approved the issuance of a commercial bank license to Industrial and Commercial Bank of China Ltd (ICBC), the largest commercial bank in the People's Republic of China.

"This license is separate from the new commercial banking licenses that will be issued under the liberalisation initiatives that was announced on April 27, 2009," Bank Negara Malaysia's Governor Tan Sri Dr Zeti Akhtar Aziz said at a press conference Friday to announce the country's economic performance.

The license comes following a bilateral arrangement between the China Banking Regulatory Commission and Bank Negara and between the Government of Malaysia and China earlier this year.

It is the first such license to be issued under a bilateral arrangement, and therefore part of a very limited number of banking licenses that Malaysia may issue from time to time, Zeti said.

She said the criteria applied for such bilateral arrangement include the level of trade and investment linkages, the extent of existing participation of the country in the Malaysian financial sector and the value addition it would contribute to the overall development of the Malaysian financial system and the economy.

On the number of branches that ICBC would be allowed to open, she said it will be similar to what has been extended to other existing foreign financial institutions in the country.

As for the licenses to be offered under the financial liberalisation, Zeti said the results would be announced within the first half of next year.

Since the closing date for the license application is December 31 this year, BNM is still receiving submissions and the evaluation process might take a few months to complete, she informed.

-- BERNAMA

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