3 Big Chinese banks to enter US banking market

The Federal Reserve announced Wednesday that three major Chinese banks have won approval to enter the US banking market. ICBC, China's biggest bank; Bank of China; and Agricultural Bank of China have been cleared to have branches in the United States, the Fed said. The Fed authorized Bank of China to set up a branch in Chicago, and Agricultural Bank of China to establish one in New York City. The board approved an application from Industrial and Commercial Bank of China to buy a majority stake in the US subsidiary of Bank of East Asia, a deal that would make it the first Chinese state-controlled bank to acquire retail bank branches in the United States. The US unit of Bank of East Asia operates 13 branches in New York and California. ICBC has been the most aggressive of China's "big four" banks in expanding overseas. ICBC has total assets of roughly $2.5 trillion and the Chinese government owns some 70 percent of its shares, the Fed said.