The world's largest bank by assets has launched operations in Peru, and it's Chinese. The Industrial and Commercial Bank of China or ICBC is looking to profit from the growing presence of Chinese companies in the Andean country.
Cutting the red ribbon, China's biggest bank made a discreet entry into Peru's financial market.
"This bank will start as a wholesale bank with Chinese companies and then will expand to serve Peruvian clients," said Daniel Schydlowsky, Peru superintendent of banks and insurance.
It's entry is a sign of China's increasing presence in Peru, especially in the mining sector. A small number of banks dominate Peru's banking sector, there's room for growth:
"We want to have a very good business and we have confidence. The important factor is the increasing investment between the two countries and also the increasing international treaties between the two countries. As the first Chinese bank we will take this opportunity to become a bridge - a financial bridge - between China and Peru," said Ma Xingjun, president of ICBC Peru.
Chinese demand for raw materials such as copper has made it Peru's biggest export market in recent years. Mining has begun at the Chinalco Mining Corporation's 4.8 billion dollar Toromocho copper mine.
And a consortium of Chinese firms, including China Minmetals Corporation, is the frontrunner to acquire a 5.9 billion dollar copper project Las Bambas from Glencore Xstrata.
The Industrial and Commercial Bank of China is the first Chinese bank to open in Peru but you won't be seeing branches on Lima's high streets just yet. This corporate bank will start with around 50 clients but consensus here is that the possibilities for expansion are huge.
Beyond mining, executives see growing potential in the fishing and energy sectors, but also agricultural exports to China.
"There are ample possibilities to develop new clients, what we must understand is that now we have a small capacity and that's our principal limitation at the moment while we develop more infrastructure," said Deuaro Patisias, deputy manager of corporate banking, ICBC Peru.
The ICBC is the first but likely not the last Chinese bank to set itself up in Peru.
Source: CCTV
