State Bank is issuing license to the Bank of China
State Bank of Pakistan has recently planned to issue the banking license to Bank of China. The bank will commence business in branch mode and will meet many regulatory requirement. The bank will bring $50 million dollars to fulfill the capital requirements of SBP.
According to the long-term objective, the Bank of China will increase the market penetration and open branches in the main cities of Pakistan by aiming to be one of the largest foreign banks in Pakistan.
However, this will be now the second Chinese bank that will operate in Pakistan and will behave as the Industrial and Commercial Bank of China is providing its services in Pakistan from 2015 along with any operations in cities.
Bank of China behaves as a subsidiary of China Central Huijin, which proves to be an investment arm of Government of China. The Bank of China is not operating mainly in the main Chinese land, but the footprints have reached to more than 50 foreign countries. Nineteen of the countries are currently located across China for the One Belt One road initiative. At the end of 2015, the Bank owns 11,633 institutions with 644 overseas markets.
The Bank of China is the 4th and 5th largest Global bank working regarding Tier 1 for Capital and total assets. It is well known as the Shanghai Stock Exchange and Hong Kong Stock Exchange.
The Bank of China is skilled in providing specialized, and differential banking services to effective serve the financing need of CPEC related projects by leveraging its experience and global technology platform. The Bank of China made entry into Pakistan and growing confidence among various investors on the stable economic outlook and country’s banking sector. However, HBL Pakistan will also set up a new branch in China while National Bank of Pakistan is waiting for the license to set up the new branch in China.