Commencement of operation: SBP grants 80-day extension to ICBC

The State Bank of Pakistan (SBP) has granted an 80-days extension to Industrial and Commercial Bank of China (ICBC) for commencing operation in Pakistan. Sources in banking sector told Business Recorder on Wednesday that the formal launching of China's largest bank in Pakistan has been put off due to delay in the arrival of some equipment from China and the formal business launching, which was due in June 2011, will now be held in next two months.
On December 10, 2010, the State Bank had granted license to ICBC for opening two branches and the license was formally handed over to the President of ICBC by Dr Shahid Kardar governor SBP, during the visit of Chinese Premier Wen Jiabao to Pakistan in December 2010. The ICBC is the first Chinese commercial bank to receive license from Pakistani regulatory authority to operate in the county.
As per the SBP rules and regulations, the license holder is required to commence operation in six months after getting the license. However, there was some delay in the arrival of equipment and latest technology, therefore the ICBC management decided to put off the formal launching.
To avoid any regulatory problem, the ICBC had approached the SBP seeking time extension for commencing operation in Pakistan, sources said. On the formal request of ICBC, the SBP has now granted 80 days extension to the China Bank management. Now, the ICBC has been allowed to start banking operation till August 31, 2011, sources said, adding that that ICBC has already made all arrangements and is expected to start operation before August. They said the opening of Chinese bank branches in Pakistan would help facilitate trade activities between the two countries.