Global Banking Directory
Press Release Distribution Service
Add Bank | Banking Forum | Scam emails!
Advertise Your Business Here
BanksDaily Twitter BanksDaily FaceBook BanksDaily LinkedIn

Financial and Banking News

China Construction Bank not keen on Bear Stearns

China Construction Bank said it has been frustrated by the United States in its attempts to expand there and is not interested in buying into investment bank Bear Stearns.

Chairman Guo Shuqing on Wednesday dismissed market talk that China's second-biggest bank might invest in Bear Stearns Cos, which is among those firms hardest hit by the U.S. subprime mortgage crisis. Guo's comments came a day after a Chinese official said CITIC Bank would like to acquire a holding in Bear, the smallest of Wall Street's five big independent brokerages.

Bear Stearns Chief Executive James Cayne said earlier this month it would consider selling a stake to an investor from China or the Middle East. Media reports have cited CCB and CITIC among potential Bear Stearns suitors along with Bank of America Corp., Wachovia Corp and billionaire investor Warren Buffett.

A CITIC official on Tuesday reported no progress in its talks with Bear Stearns. Guo had harsh words for U.S. regulators. Whereas China had opened its banking market to foreign banks from the United States and elsewhere, CCB had been trying to open a branch in the United States but had so far failed win approval.

"In the past we may have had our problems, for instance low capital adequacy and bad performance, but now the situation has completely changed," he said. "Yet the U.S. side has still not changed its attitude. It is abnormal and unfair."

Bank of America, which holds a strategic stake in CCB, has agreed not to conduct retail banking in China, but this would not prevent CCB from entering the retail market in the United States, Guo said. Guo said CCB, which is also partly owned by Singapore's Temasek Holdings, was keen on overseas mergers and acquisitions but he refused to disclose any specific targets.

He did, however, say the bank hoped to expand in Japan. CCB would also look at other countries that enjoy close economic relations with China. Flush with cash after big IPOs, China's big banks are starting to spread their wings overseas.

Industrial and Commercial Bank of China, the world's largest bank by market capitalization, said it planned to open branches in Doha, Dubai, Moscow and Sydney.

"As the whole world knows, the Middle East is a fast-growing region with lots of capital. Just as in China, there are many opportunities for banks," Chairman Jiang Jianqing told reporters at a separate briefing. Jiang said he wanted overseas business to account for 10 percent of ICBC's total revenues, up from 3 to 4 percent now.

CCB Chairman Guo also said Chinese regulators had not yet approved the bank's proposal to set up a life assurance company with Ping An Insurance (Group) Co., China's second-largest life underwriter.

A request by CCB International, a wholly owned Hong Kong subsidiary, for a mainland banking license is also still awaiting approval, he added. Guo acknowledged that Chinese banks were under increasing pressure on their home turf from foreign rivals but said stiffer competition was good for the industry.

China Construction Bank shares were down 0.4 percent in trading in Hong Kong after Guo's comments, but have nearly doubled over the last year as investors seek stocks that are benefiting from China's booming economic growth.

Source: Reuters
Date: 17.10.2007 [118]

Financial and Banking News
 Banks may need political help to survive Big Tech

First there was the financial crisis of 2008. Then years of negative interest rates. Now, banks face what one financial regulator calls the "real game changer." 09.12.2019 | Source: Bloomberg

 Trump blasts Bitcoin, Libra, demands they face banking regulations

U.S. President Donald Trump on Thursday criticized Bitcoin, Facebook's proposed Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to U.S. and global regulations if they wanted to "become a bank." 11.07.2019 | Source: Reuters

 25th World Islamic Banking Conference announces 4th series of WIBC Leaderboard

Top performing Islamic Financial Institutions from Bahrain, Egypt, Indonesia, Jordan, Kuwait, Malaysia, Oman, Pakistan, Turkey, UAE and Saudi Arabia are vying for the WIBC Awards recognizing the Best Performing Banks at the Global and Regional level. 28.10.2018 | Source: MEGA

 Financial technologies are need of the hour for Banks in India

The Indian FinTech space is expected to reach $2.4 billion by 2020 and 2018 will be a critical year in that journey because 52 % of India's digitally active consumers are adopting FinTech and are the driving force for new technology adoptions. 02.03.2018 | Source: Explore Exhibitions and Conference

 International Banking Exhibition and Conference will be held in Baku

"Digital Banking and Security" titled International Banking Exhibition & Conference will be held in Baku on 17-18 of April, 2018 by FA International Trade Events. 07.02.2018 | Source: FA International Trade Events

 📰 News Archive

2007-2020 © BanksDaily.com | Rus