ICBC becomes active in Turkey’s banking sector

ICBC becomes active in Turkey’s banking sector

ICBC becomes active in Turkey’s banking sector Industrial and Commercial Bank of China Limited (ICBC) has announced that its acquisition of a 75.5 percent of stake in Tekstilbank from Turkish GSD Holding, resulting in the first business institution operated in Turkey by a Chinese bank.

“The acquisition of Tekstilbank further complements ICBC’s international footprint. The transaction will also enhance ICBC’s service capability for customers from both countries, thereby promoting local economic development,” the world’s largest lender, ICBC, said in a written statement May 25. 

ICBC, headquartered in Hong Kong and Shanghai, leads the global banking industry in capital base, total assets, market capitalization, deposits, loans, and number of clients. U.S. Forbes magazine has recently ranked ICBC at the top of the Global 2000 list, a position taken by the bank for the third consecutive year. 

“ICBC has established a global network of approximately 400 overseas institutions providing superior services to 42 countries and regions. In addition, ICBC has a coverage of 20 African countries through its 20 percent strategic equity investment in Standard Bank of South Africa,” said the statement. 

Tekstilbank is a licensed depository bank in Turkey, mainly engaging in banking operations for corporate, small and medium-sized enterprises and retail. It also provides securities brokerage, investment banking and assets management services through its subsidiary Tekstil Securities. 

“Tekstilbank has sound business fundamentals and local operating capability with 44 branches and around 900 employees. Its branches are located in Turkey’s most economically developed regions, which together account for approximately 70 percent of Turkey’s GDP,” added the company.     

The ICBC also underlined the flourishing economic and trade ties between China and Turkey through a number of new projects, mainly the establishment of the Silk Road Economic Belt and the launch of the Asian Infrastructure Investment Bank. 

“China and Turkey already have extensive cooperation in areas like high-speed rail, electricity generation, aerospace and satellites. Turkey has also become an important overseas engineering, procurement and construction market for Chinese enterprises. The establishment of the Silk Road Economic Belt, coupled with Turkey becoming a prospective founding member of the Asian Infrastructure Investment Bank, will further broaden the scope of cooperation between the two countries in developing infrastructure projects,” said the statement. 

At present, China is Turkey’s third largest trading partner and second largest importing country. According to the long-term trade target set by the governments of China and Turkey, the bilateral trade balance is expected to exceed $100 billion by 2020.