Giant China bank granted Panama license

The Industrial and Commercial Bank of China (ICBC), one of the largest in the world’s second biggest economy has planted aother foot in  America’s sphere of influence  with   the granting  of an operating license in Panama to conduct business in Latin America, reports the Superintendent of Banks of Panama, Amauri Castillo .

In a resolution of June 12, the banking regulator “granted a general banking license to ICBC” to “exercise the banking business in and from the Republic of Panama,” Castillo told AFP.

The bank plans to “serve a regional market from Panama”, although it already has operations in Argentina, Brazil, Peru and Mexico, Castillo said.

ICBC is one of the four major Chinese state-owned commercial banks. It is considered the largest in terms of market value in its country and is one of the top 20 banks in fossil energy financing worldwide.

“This represents excellent news, even more so taking into account the global circumstances that we are all experiencing as a result of the covid-19 pandemic, and confirms the confidence that global banking institutions have in Panama,” Castillo said.

China and Panama established diplomatic relations in 2017,  and have since signed several economic and trade agreements.

Panama with a dollarized economy, an interoceanic canal, and a financial center with a hundred banks, is seen by Beijing as a springboard to extend its economic and commercial influence in Latin America, a region historically allied to Washington.

The arrival of ICBC comes at a time when Panama has entered the European Union’s blacklist on money laundering.

The Panama International Banking Center is “solid” and “is strictly governed by the highest standards” against money laundering and terrorist financing, Castillo said.