The US Federal Reserve Board has approved three investment applications into the US banking market from companies based in China.

The investments are characterised by the acquisition of 80 per cent of a national banking association and the establishment of two foreign branch offices by Chinese firms. The three approvals were given to the Industrial and Commercial Bank of China, China Investment Corporation and Central Huijin Investment, all from Beijing.

The firms had requested approval to become bank holding companies by acquiring 80 per cent of the voting shares of the Bank of East Asia, National Association in New York. ICBC engages primarily in retail and commercial banking in China, while CIC is a Chinese government-run vehicle that controls Huijuin, which invests in Chinese financial institutions. BEA-USA records around $780 million in total consolidated assets and some $621 million in deposits as of 31 December 2011. It has 13 branches in New York and California.

In evaluating applications by foreign organisations, the Federal Reserve Board considers regulation on a consolidated basis, competition, supervisory considerations, convenience and financial stability before handing an approval. In a statement, the regulator said that the key consideration in reviewing the application was the capital strength of ICBC. 

ICBC recorded some RMB3.5 trillion ($554 billion) in assets under custody as of December 2011 and has been actively expanding beyond China. Early this month, the bank announced that it is setting up a branch in Poland this year, a first among Chinese banks.