Bank of America to expand into China, CEO states

25 March 2010

Bank of America (BoFA) is planning on expanding its banking services in China, the firm’s chief executive officer (CEO) has announced.

Brian Moynihan made the comments on his first visit to the nation since he took on the post of CEO at the beginning of 2010.

He told Reuters that the financial institution enjoys a good working relationship with China Construction Bank (CCB).

BoFA currently has an 11 per cent stake in the organisation, a share which was reduced from 16.7 per cent to boost its balance sheet during the global credit crisis.

Mr Moyniham was quoted by the news provider as saying: “We are comfortable with where we are. Based on our interaction and the amount of strategic support we have with CCB, I think that relationship is very strong.

“We are pursuing China, expanding our powers and capabilities in this country.”

BoFA is expected to apply for a securities licence which would enable the institution to underwrite the sale of stock and bonds in the state.

A timeline for the expansion has yet to be announced.

By Jim Ottewill

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