X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Only a few days after the State revealed that Goldman Sachs planned to headquarter its new full-service banking operations here, as GlobeSt.com reported, Gov. Paterson revealed that Industrial and Commercial Bank of China is opening its first US branch in New York City.

Gov. Paterson says that this move is the latest positive development for Manhattan’s financial marketplace. “Once again, New York is proving itself to be the capital of global finance,” he says in a prepared statement. “When one of the largest banks in the world chooses New York City as their US base of operations, it is a reminder of the role that our State plays in global financial markets.”

ICBC’s official opening comes in the same week as Goldman Sachs Group Inc. revealed that it has applied to the New York State Banking Department to become a full-service, state-chartered bank, and will headquarter its US commercial bank in New York City. Once approved, Goldman Sachs Bank USA will have approximately $150 billion in assets.

According to an ICBC statement, the branch is located in Trump Tower, Fifth Avenue. It will engage in wholesale deposits, loans, trade financing, US dollar clearing, treasury and other banking businesses. “As a platform for ICBC’s businesses in the US, the branch will take advantage of the funds, network, and technology provided by ICBC head office, and provide comprehensive banking services for clients, multinational corporations and financial institutions in both countries,” the statement says.

The US is one of China’s most important trading partners, according to the ICBC statement. As of the end of 2007, US investment in China has topped $56 billion, making it a major source of China’s foreign direct investment. Meanwhile, according to the statement, in recent years, the number of various types of companies set up by Chinese enterprises in the US is also on the rise. In 2007, according to approvals and records from China’s Ministry of Commerce, China’s non-financial direct investment in the US amounted to $290 million, with an accumulated investment of about $1.25 billion.

Jiang Jianqing, chairman of ICBC, said at the opening ceremony on Wednesday that although the current financial crisis is still spreading, he believes that under the concerted efforts of the governments around the world, US economy will be able to ride out the storm, restore prosperity, and that world financial industries “will definitely move out of turmoil and depression, and embrace recovery and prosperity.”

In September 2008, the New York State Banking Department awarded a license to ICBC to establish this branch in the US. Since 1997, ICBC has had a representative office in New York, which is also licensed by the Banking Department, according to the statement.

New York State superintendent Richard Neiman says in the statement that “this branch represents ICBC’s confidence in New York, its Banking Department, and in the US economy.” In July, the Banking Department also awarded a license to China Merchants Bank, the sixth largest bank in China, to open the first new mainland Chinese branch in the US in 17 years. CMB was the first branch of a bank from mainland China to open since the adoption of the Foreign Bank Supervision Enhancement Act of 1991, according to the statement.

The ICBC statement echoed Gov. Paterson’s remarks, noting that the launch of the New York City branch was an “expression of the confidence in the long-term prospects for US economy.” As of the end of June, 2008, ICBC has extended business institutions to 15 foreign countries and regions, with a total of 126 branches and subsidiary banks, and established bank agency relations with 1349 banks in 122 countries and regions

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.