October 02, 2009

China’s largest lender Industrial and Commercial Bank of China’s (ICBC) intention to expand its footprint in South-East Asia has created excitement among local economists and analysts, who say the move will bolster trade and cross-border transactions in the region.Many agreed that the presence of major Chinese banks in the local market would not only spice up competition in the banking industry but also enhance the local Islamic banking and capital markets.

At the moment, the only Chinese bank operating in Malaysia is Bank of China (M) Bhd.ICBC, which recently indicated it planned to buy Thailand’s ACL Bank, said emerging markets in Asia would be its key priority for international mergers and acquisitions.In line with the Government’s financial sector liberalisation plans, it is learnt that some of the Chinese banks, besides their Indian counterparts, were among the top 10 banks in their countries that had expressed interest in setting up operations here.