Establishment of ICBC (Mexico) Approved
OREANDA-NEWS. December 09, 2014. Mexico’s banking and securities regulator, officially approved ICBC's application for a banking license in the country and the establishment of Industrial and Commercial Bank of China (Mexico) Limited.
It marks the Bank as the first Chinese bank officially approved to run business in Mexico, and ends the history of no presence of Chinese bank in the country.
Mexico is the world's 14th biggest economy and the second biggest economy in Latin America. Since the two countries established diplomatic relations, bilateral trade and economic ties have grown increasingly closer. Bilateral annual trade volume has increased from USD 12.99 million in 1972 to USD 39.22 billion in 2013, which has raised higher requirements for financial services provided by commercial banks. ICBC has been seeking the opportunity to enter the Mexican market. In January 2014, Mexico passed the financial reform program – Credit Institutions Bill, which paved the way for Chinese banks to apply for institution establishment. So ICBC seized the opportunity to accelerate the license application, and obtained the approval of the local regulator at a record-breaking speed, particularly for foreign banks.
According to an ICBC official, upon establishment, ICBC (Mexico) will actively participate in the cooperation between China and Mexico in the areas of energy, import and export, engineering contracting, and equipment supply. In the meantime, now holding the chairmanship of the China-Mexico Entrepreneurs High-Level Task Force, ICBC has very extensive communication and cooperation with Mexican enterprises. Going forward, the Bank will act as a bridge and link for cooperation between Chinese and Mexican enterprises through its local subsidiary, and actively come up with strategic and forward-looking suggestions to promote trade and economic ties between the two countries.
In recent years, the Bank has vigorously forged ahead with global development, accelerated the establishment of overseas institutions, broadened the scope for overseas business development, and enhanced its cross-border financial service capabilities. With the Mexican subsidiary approved to be established, ICBC has had over 330 overseas institutions in 41 countries and territories worldwide, extended its reach to 18 African countries by acquiring a stake in Standard Bank, and formed a global service network spanning Asia, Africa, Latin America, Europe, North America, and Australia. In the Americas, its services have covered major economies including the United States, Canada, Mexico, Brazil, Argentina and Peru. As an important supplement to its overseas business network, the Bank's network of correspondent banks has covered 146 countries and territories worldwide, with 1,767 foreign correspondent banks in total.
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