According to The Australian, banking group Westpac is accelerating its organic growth strategy in Asia, with Chinese authorities reportedly close to issuing a banking license that would allow the firm to conduct business in Shanghai.
Citing anonymous sources, The Australian reported that the China Banking Regulatory Commission has already given its preliminary approval for the Australian bank to establish a branch in Shanghai.
Under the terms of the agreement, Westpac will be able to conduct a foreign currency business to begin with, once it has been formally signed off. Only after three years can the bank start a local currency operation, provided the business was profitable for a minimum of two of those three years, reported The Australian.
Currently, the Australian financial services provider has a regional presence in Singapore, Hong Kong and Jakarta, Indonesia. Furthermore, it also has a representative office in China’s capital, Beijing, which is limited to conducting liaison activities, with plans to establish a similar outpost in Mumbai, India in May 2007, The Australian said.