DAVOS (Reuters) – Commerzbank does not want to support their growth in China with the establishment of a local branch. The CEO Blessing said on Friday, but he remains optimistic about the growth potential of the bank in China, a market with long-term attractiveness to foreign banks. (Photo: Commerzbank)
According to Chinese regulations, a local branch of a foreign bank needs to go into the potentially lucrative retail business in local currency.
"What we do not want to do is some type of retail business. To order in China as in other markets to be successful, you need my opinion, a large presence … and we do not believe that we have enough competitive advantages compared to some other market participants, "said Blessing. The Frankfurt-based Commerzbank now has three branches in Beijing, Shanghai and Tianjin.
Also Commerzbank does not currently thinking about an entry in a Chinese bank. "If credit growth is very large, could deteriorate the quality of the financial statements themselves. Now that’s potentially not the best time to invest," he said in view of the unprecedented credit boom in China last year. This was part of the financial incentive program of the government. "I do not rule it out, but we discuss it at the moment."
DJG / sha / cbr / voi