Will China’s Banks Gain More Ground in Latin America?
In recent years, Chinese banks have increased their presence in Latin America. Among them is China Construction Bank, which Chile authorized in 2016 to operate there. Five years ago, China’s central bank appointed the lender as the clearing institution for the yuan in Chile, where it “could serve as a base to finance projects,” then-Chilean Foreign Minister Heraldo Muñoz said at the time. To what extent are Chinese commercial banks making inroads in Latin America and the Caribbean? How would greater integration in financial services between China and Latin America serve China’s goals, and how would it affect Latin America? In the years ahead, how much will Chinese financial services firms grow their presence in Latin America and the Caribbean, as opposed to financial firms from other locations, such as the United States and Europe?
Thomas F. Morante, member of the Financial Services Advisor board and attorney, and Yani R. Contreras, consultant, both at Carlton Fields: “Although not uniform throughout Latin America, the presence of Chinese banks in various countries has facilitated Chinese investment in recent years. Chinese bank investment in the region appears to have been primarily driven by China’s interest in financing Chinese companies participating in infrastructure projects. In the past 15 years, Chinese companies have been involved in 86 infrastructure projects focused on a few countries, such as Argentina, Brazil and Peru, although fewer than 15 percent of these projects are located in Mexico, Central America and the Caribbean. The Industrial and Commercial Bank of China (ICBC) and the Bank of China…”Read More
J. Safra Sarasin Acquires Private Banking Units
Mexicans Send Home $40.6 Bn in Remittances
Complete editions of the Financial Services Advisor are delivered on a biweekly basis to members of the Dialogue's Corporate Program and other subscribers. Sign up below for a free complimentary preview subscription.
About the Financial Services Advisor
Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Erik Brand, publisher of the Advisor, at email@example.com.