ICBC
Case study of Industrial and Commercial Bank of China
Business International
Ashford University
China is a country that is expanding and enlarging its empire on an economical scale. They have become known as one of the biggest countries for import and export. Most importantly, they have made a name for their selves when it comes to international business. ICBC (Industrial and Commercial Bank of China) has become the largest bank by specializing in market capitalization, and it has been achieved by implementing, and running a successful global banking order.
ICBC is stationed in Beijing where the Chinese government owns 70 percent of it. It has become and still is the largest bank in the U.S with an asset of 2.5 trillion (Hilserath, Sidel & Wei, 2012). In comparison with the U.S., they come in second with an asset of 2.3 trillion from J.P Morgan Chase (Hilserath, Sidel & Wei, 2012). As stated before, China has been making its way into to the world of international business. Chinese banks have been wanting to get insight and have some access into the U.S. banking system. The ICBC wanted to be able to provide financing for Chinese companies who were not in the country. They wanted to provide assistance to those companies who are working overseas. In addition to this, the ICBC also wanted to be able to do business with foreign investors who were interested, and wanted to get some exposure to the Chinese currency.
An advantage that the bank could have is by being able to stand out from the rest, especially from U.S. banks. With China being very canny, they could present their currency, the Yuan, to U.S. customers. How this can be done is by China letting the U.S customers be able to make “Yuan deposits” into their accounts. According to the Federal Bank, it took up to two years to approve the branch that ICBC has stationed in New York to allow commercial lending (Hilserath, Sidel & Wei, 2012). On the contrary, a disadvantage would be
Business International
Ashford University
China is a country that is expanding and enlarging its empire on an economical scale. They have become known as one of the biggest countries for import and export. Most importantly, they have made a name for their selves when it comes to international business. ICBC (Industrial and Commercial Bank of China) has become the largest bank by specializing in market capitalization, and it has been achieved by implementing, and running a successful global banking order.
ICBC is stationed in Beijing where the Chinese government owns 70 percent of it. It has become and still is the largest bank in the U.S with an asset of 2.5 trillion (Hilserath, Sidel & Wei, 2012). In comparison with the U.S., they come in second with an asset of 2.3 trillion from J.P Morgan Chase (Hilserath, Sidel & Wei, 2012). As stated before, China has been making its way into to the world of international business. Chinese banks have been wanting to get insight and have some access into the U.S. banking system. The ICBC wanted to be able to provide financing for Chinese companies who were not in the country. They wanted to provide assistance to those companies who are working overseas. In addition to this, the ICBC also wanted to be able to do business with foreign investors who were interested, and wanted to get some exposure to the Chinese currency.
An advantage that the bank could have is by being able to stand out from the rest, especially from U.S. banks. With China being very canny, they could present their currency, the Yuan, to U.S. customers. How this can be done is by China letting the U.S customers be able to make “Yuan deposits” into their accounts. According to the Federal Bank, it took up to two years to approve the branch that ICBC has stationed in New York to allow commercial lending (Hilserath, Sidel & Wei, 2012). On the contrary, a disadvantage would be
References: Hill, W.L. (2011). International business: Competing in the global marketplace (8th Ed.) Hilsenrath, J.,Sidel, R., & Wei, L. (2012, May 10). Chinese banks get nod in U.S. Retrieved from http://online.wsj.com/news/articles/SB10001424052702304543904577394533978464876 ICBC makes modest gains after world-record listing. (2006, November 12). Retrieved from http://www.chinadaily.com.cn/china/2006-11/12/content_730805.htm