MALAYSIA ISSUES COMMERCIAL BANK LICENCE TO ICBC OF CHINA

KUALA LUMPUR, Nov 20 (Bernama) -- Prime Minister cum Finance Minister
Najib Razak has approved the issuance of a commercial bank license to Industrial
and Commercial Bank of China Ltd (ICBC), the largest commercial bank in the
People's Republic of China.

"This license is separate from the new commercial banking licenses that will
be issued under the liberalisation initiatives that was announced on April 27,
2009," said Dr Zeti Akhtar Aziz, the governor of Malaysia's central bank Bank
Negara Malaysia (BNM), at a press conference Friday to announce the country's
economic performance.

The license comes following a bilateral arrangement between the China
Banking Regulatory Commission and Bank Negara and between the Government of
Malaysia and China earlier this year.

It is the first such license to be issued under a bilateral arrangement, and
therefore part of a very limited number of banking licenses that Malaysia may
issue from time to time, Zeti said.

She said the criteria applied for such bilateral arrangement include the
level of trade and investment linkages, the extent of existing participation of
the country in the Malaysian financial sector and the value addition it would
contribute to the overall development of the Malaysian financial system
and the economy.

On the number of branches that ICBC would be allowed to open, she said it
will be similar to what has been extended to other existing foreign financial
institutions in the country.

As for the licenses to be offered under the financial liberalisation, Zeti
said the results would be announced within the first half of next year.

Since the closing date for the license application is Dec 31 this year,
BNM is still receiving submissions and the evaluation process might take a few
months to complete, she informed.
-- BERNAMA