ICBC may soon obtain bank license from Malaysia

Nov. 5, 2009 (China Knowledge) - Industrial & Commercial Bank of China<1398><601398>, the world's largest lender by market value, is likely to receive a banking permit from the government of Malaysia during Chinese President Hu Jintao's visit to Kuala Lumpur next week, the Straits Times reported yesterday.

The permit will enable ICBC, the world's most profitable bank, to open four branches in the country, according to the report.

The central bank and government of Malaysia are in the process of completing the approval, said the newspaper, citing sources as saying.

ICBC will be the first foreign bank to be granted a banking license in Malaysia in nine years. In 2000, Malaysia granted a bank permit to Bank of China Ltd<601988><3988>.

Malaysian Prime Minister Najib Razak said in April that the country will issue up to nine new licenses to foreign financial institutions as the nation liberalizes its bank sector as part of its effort to promote foreign direct investment.