(11 September 2015 – China) Bank of China plans to expand operations in to Turkey, according to people close to the negotiations.
The move by China's fourth largest commercial bank comes as the Industrial and Commercial Bank of China (ICBC) became the first Chinese bank operating in Turkey, when it took over a majority stake in Tekstilbank earlier this year.
Officials from the Turkey’s Banking Regulation and Supervision Agency and Bank of China executives met on earlier in the week to discuss the legal formalities of the plan.
Ankara requires a minimum of US$300 million (A$423.9 million) in registered capital, however it is unclear how much the Chinese bank is looking to invest.
Asian investors have been looking at investment opportunities in the Turkish financial system, well, especially the regulated banking sector, with hopes of higher rates of return than in developed markets.