Standard Chartered, one of the world's leading consumer and wholesale banking service providers, has applied to establish a branch in Chengdu, capital of Sichuan Province, according to a senior bank official.

The bank, one of the oldest foreign banks in China, currently has a representative office in the city.

"We submitted an application at the beginning of this year and it is still waiting for approval," said Irene Yin, deputy manager of the bank's Beijing branch.

She said that Standard Chartered will apply to set up more branches throughout China.

Dalian, Qingdao, Guangzhou, Hangzhou and Ningbo, where the bank operates representative offices, will take priority.

The Beijing branch is also adding to its range of services by opening a personal banking centre in Oriental Plaza in April or May.

"We are busy preparing for the opening at the moment," Yin said.

As China's banking sector opens further to foreign players, competition is heating up. Every bank, domestic and foreign alike, is fighting tooth and nail for market share.

Analysts predict China will become Standard Chartered's next business focus now that the UK-based bank, an active player in Asia, has greatly enhanced its presence in South Korea where it acquired, in January, a 48.56 per cent stake in Korea First Bank for US$3.3 billion, beating out Hong Kong and Shanghai Bank Corporation (HSBC). The purchase represented South Korea's largest single foreign investment to date, and also Standard Chartered's biggest ever acquisition.

The bank is now expected to quicken its expansion in China, helped by its investment in the establishment of Bohai Bank in Tianjin, analysts said.

By 2008, Standard Chartered may have as many as 20 branches in China.

The bank, with its China headquarters in Shanghai, currently operates seven branches and one sub-branch in Shanghai's Puxi District.

Five of these branches, in Beijing, Shanghai, Nanjing, Shenzhen and Xiamen - have been given the greenlight by the China Banking Regulatory Commission to conduct renminbi business for both Chinese and foreign corporate customers as well as foreign individuals.

Source: China Daily