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CMB got the approval of Federal Reserve to establish New York branch
 

(November 13, 2007) China Merchants Bank (“CMB”) got the approval of the Federal Reserve on November 8 to establish a branch in New York, the United States, marking a milestone for the development of the bank.

 CMB established its representative office in New York, the US in October 2002. Due to the discrepancies in various fields like legal environment, accounting standards and internal control between China and the US, the bank had faced a lot of challenges while applying to the US monetary authorities for the approval to establish its branch in the US.

The approval of CMB to open a branch in New York was attributable to the continued efforts made by the bank to raise its operational standards to meet the stringent requirements of the Federal Reserve and the improvement of the financial environment in China. In the order approving the establishment of the CMB’s New York branch, the Federal Reserve made it clear that the China Banking Regulatory Commission (“CBRC”) had enhanced existing supervisory programs since its establishment in 2003 and developed new policies and procedures designed to create a framework for the consolidated supervision of banks in China.

A senior official from the CBRC welcomed the Fed’s new policies of opening its banking market to China and deemed that this move would further enhance mutual beneficial cooperation between the two sides. The banking supervisors from both U.S. and China have continuously been strengthening the cross-boarder supervisory cooperation and improving bilateral information exchange.

Mr. Ma Weihua, President of CMB, said the proposed New York branch would focus on the business of international settlement and trade finance derived from the Sino-US economic cooperation, which would be supplemented by its treasury and clearing operations. The branch would serve as a door for the bank to expand its US operations. CMB will recruit a reputable US consulting agency to help it position in the market and to develop the operational mechanism for the branch according to the international standards.