New York State Banking Department Licenses China Merchants Bank; First New Chinese Branch to Open in U.S. in 17 Years
First Mainland Chinese Branch to be Licensed by New York State
July 14, 2008
New York, NY: The New York State Banking Department today awarded a license to China Merchants Bank (CMB), the sixth largest bank in China, to open the first new mainland Chinese branch in the United States in 17 years. China Merchants Bank has had a representative office in New York since 2002, which is also licensed by the Banking Department.
“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.”
This is the first branch of a bank from mainland China to open since the adoption of the Foreign Bank Supervision Enhancement Act of 1991. China Merchants Bank is opening this wholesale branch to focus on international banking business, offering trade settlement and financing services.
“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 $187 billion in assets with 576 branches and offices across China with over 30,000 employees. It generated $3 billion net income in 2007.
The New York State Banking Department currently licenses 131 foreign institutions, including branches, representative offices and commercial banks from more than 30 countries.
TheNew York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $1.8 trillion.
In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.banking.state.ny.us.