China Merchants Bank has become the first Chinese bank to receive a banking license in the United States since the adoption of the Foreign Bank Supervision Enhancement Act of 1991.
The granting of the New York State banking license recognizes that the bank meets a significant regulatory standard, as well as the enhancement of China's financial regulatory environment. CMB's fist New York branch is expected to open later this year.
"We recognize that international banks have options with respect to charter choice for their overseas locations and we are proud that China Merchants Bank has chosen New York State, making them the first Chinese bank branch licensed by the New York State Banking Department," said Richard H. Neiman, superintendent of banks for the State of New York. "New York has been, and continues to be, an international hub of finance. China Merchants Bank, as well as many other foreign institutions, have recognized this and the benefits of working with New York in their business endeavors, confirming New York as a leading global financial center."
"The New York branch will facilitate trade and other business activities between the United States and China by providing trade service, trade finance, dollar clearing and other services to businesses from both countries," said Hui Fang, the General Manager of the New York branch. "Our New York branch will continue to adhere to high standards of prudent and compliant management and operations as we commence business transactions. Our New York branch is an important part of CMB's overseas expansion strategy."
China Merchants Bank was founded in 1987 with its head office in Shenzhen, China. It is China's 6th largest bank by total assets with shares traded in both Shanghai and Hong Kong stock exchanges. As of December 31, 2007, CMB had total assets of USD187 billion with 576 branches and offices across China with over 30,000 employees. It generated USD3 billion net income in 2007.
CMB provides customers with various corporate and retail banking products and services, and conducts treasury activities for proprietary purpose and on behalf of its customers. CMB issues credit cards, and offers online banking and wealth management services in China.