Federal Reserve Approval of ICBC Acquisition Clears the Way for Chinese Bank Acquisitions of US Banks | White & Case LLP International Law Firm, Global Law Practice
Federal Reserve Approval of ICBC Acquisition Clears the Way for Chinese Bank Acquisitions of US Banks

Federal Reserve Approval of ICBC Acquisition Clears the Way for Chinese Bank Acquisitions of US Banks

On May 9, 2012, the Board of Governors of the Federal Reserve System ("Board") issued an order approving the first acquisition of a US bank by a bank organized under the laws of the People's Republic of China ("ICBC Order").[1] The ICBC Order approves the acquisition by Industrial and Commercial Bank of China ("ICBC"), considered the world's largest bank in terms of profit and market capitalization, of an 80 percent interest in The Bank of East Asia (USA) National Association ("BEA-USA"), a national bank with offices in New York and California and total consolidated assets of approximately US$766 million. While the size of this acquisition is quite small, the ICBC Order is significant because it paves the way for Chinese banks to expand their presence in the US financial markets through the acquisition or establishment of US banking organizations.

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[1] A copy of the ICBC Order is available at federalreserve.gov.

 

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