CCB obtains Malaysian banking license
(2 November 2016 – Malaysia) State-owned China Construction Bank (CCB) has been granted a commercial bank license by the Malaysian Ministry of Finance, the country's central bank said in a statement.
The newly-established bank, called China Construction Bank (Malaysia) Berhad (CCB Malaysia), will be operated as a wholly-owned subsidiary of CCB Corporation Ltd, said the statement from Bank Negara Malaysia.
The grant of the license is based on CCB's prudential strength and ability to bring in propositions that are in the best interests of Malaysia, the central bank said.
Bank Negara also highlighted CCB Malaysia's "predominant focus in infrastructure project financing", adding that its presence is expected to further strengthen economic and financial relationships between China and Malaysia.
CCB will become the third Chinese state-owned bank to open branches in Malaysia after the Bank of China and the Industrial and Commercial Bank of China.
Earlier this year, CIMB Group, Malaysia's second-largest lender by assets, appointed CCB as its sub-custodian bank in Chinese mainland to clear, settle and safekeep securities, bonds, and other investment products.
The two banks also signed a memorandum of understanding to appoint CIMB as the settlement agent for CCB's customers' investment portfolios in Malaysia.
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