Bank of China seeks subsidiary status in Kingdom
The Bank of China will apply for subsidiary status in Thailand in the second half of the year, aiming to broaden its services for customers conducting Thailand-China business transactions.
"We will apply for that as soon as possible," said Che Jun, general manager of the bank’s Bangkok office. "We are preparing the documents. We will try to get approval from our head office within one month."
Once the Bangkok branch has approval from its head office in China, it will ask for a green light from the Chinese banking regulator. Then it will apply to the Bank of Thailand for a subsidiary licence before receiving approval from the Thai Finance Ministry.
Last month, the BOT announced a historic move, allowing foreign bank branches to upgrade themselves into subsidiaries in Thailand. Under the new rule, foreign banks with no less than Bt10 billion in paid-up capital will be able to operate up to 20 branches and 20 off-premise automated teller machines nationwide.
Che indicated that the bank would go for the 20-branch |maximum.
"We don’t want to be the biggest bank [in Thailand]. We need to provide more convenience for Thai and Chinese customers in Thailand."
The Bank of China yesterday opened its second branch, on Ratchadaphisek Road in Bangkok. It plans to open a third in Rayong province in March.
"Our second branch is at the business centre close to the Chinese Embassy and where a number of Chinese live," Che said.
Last year, the Chinese bank announced its intention to put more focus on baht-denominated businesses with launches of dual-currency debit cards and credit cards.
Currently, there are about 2,000-3,000 users, mostly Thais, of Bank of China credit cards after their launch at the end of November.
