anz signs deal with chinese officials

ANZ signs deal with Chinese officials
21/02/2010 4:57:01 PM



ANZ Banking Group Ltd, which has the biggest Asian presence among Australian lenders, has signed a cooperation agreement with the Chinese municipality in which it has opened a rural branch.

The bank signed a strategic cooperation agreement with the Chongqing Government's Financial Affairs Office, which formalises ANZ's intention to establish its branch and its commitment to assist the growth and development of the municipality's financial industry.

The letter of intent was signed following a meeting between ANZ chief executive Mike Smith and a Chongqing government delegation led by Vice Mayor Tan Xiwei, the Melbourne-based bank said in a statement on Sunday.

"The delegation's visit highlights the growing economic linkage between Australia and the municipality," Mr Smith said.

"The agreement we have signed today serves to formalise ANZ's commitment to expand in Chongqing and to support its plans to become a major financial centre in western China."

ANZ opened its first wholly-owned branch Chongqing Liangping ANZ Rural Bank Co Ltd in September last year, one of the first Chinese regional branches to be opened by any non-Chinese bank.

Chongqing has over 31 million people and its gross domestic product grew by 14.9 per cent in 2009.

ANZ expects to complete the approvals to establish a wholly owned bank subsidiary in China this year, which will provide a platform to open 20 new branches in the country on top of its existing three.

That is part of ANZ's strategy of becoming a super regional bank, where the aim is to have 20 per cent of earnings coming from Asia by 2012.

ANZ is the smallest of the big four Australian banks, and has looked to Asia to provide its growth strategy.

Luo Guang, director general of the Chongqing Financial Affairs Office, who was also in the delegation, said the city wanted to be a financial centre.

"Chongqing has a vision to be the financial centre of the upper Yangtze River and we welcome ANZ's continued support of our work to expand Chongqing's financial services industry," he said.

Mr Smith is a member of the Chongqing Mayor's International Economic Advisory Council and ANZ has plans to increase the capital of the local rural bank to 30 million renminbi ($A4.9 million).