Another Chinese bank, China Construction Bank Corporation, starts operations in Hungary, the MNB said today. Based on their balance sheet total, three of the four largest credit institutions in the world today have already appeared in our country – they recall. They all come from the Far East, China, and are ahead of rival US, British, German or French banks in size.
China Construction Bank Corporation, which is primarily engaged in corporate lending in Hungary, has already been registered by the National Bank of Hungary (MNB) to start its operations. The Hungarian operations will be carried out as a branch of the China Construction Bank (Europe) S.A., based in Luxembourg.
The establishment of a new Chinese bank supports the further expansion of economic, financial and trade relations between Hungary and China, and is also part of the Central Bank's Renminbi Program announced by the MNB in 2015 and the Budapest Renminbi Initiative.
As it is known, the Bank of China Group, with its 4th largest balance sheet total in the world, has been operating in Hungary for many years as a subsidiary bank, joint-stock company, branch of credit institutions, cross-border credit institutions and insurance intermediaries. In addition, Bank of China (Hungária) Hitelintézet Zrt., Following its announcement to the MNB, also established and operates its own branches in Austria, the Czech Republic and at the end of 2019 in Romania.
The Agricultural Bank of China (headquartered in Luxembourg), the world's third largest bank in terms of assets, has been operating a credit institution in Hungary as a cross-border service provider since 2015.
All this means that three of the four most important credit institutions in the international arena – with the exception of the Industrial and Commercial Bank of China – are already present in Hungary. In fact, there are some of them that consider Hungary as a regional financial-business center and expand from there. All of this marks the recognition of the domestic economy and money market at the other end of the New Silk Road in the Far East, writes the Hungarian National Bank in an enthusiastic statement.
Unfortunately, two of the top four banks in Europe have already appeared in their “clone banks” that misuse their names and provide unauthorized services to gullible customers, he warns. Alerts issued by the MNB's website following information from the Financial Conduct Authority (FCA) in the UK In the institution search menu.
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