Bank Asia to open wholly owned subsidiary in Hong Kong with HK$6 million in capital
Stock market-listed Bank Asia has decided to set up a wholly owned subsidiary in Hong Kong. The bank's board of directors took the decision to expand its international banking operations, according to Dhaka Stock Exchange sources on Thursday (29 October).
Under the decision, HK$6 million will be invested as initial capital for the subsidiary within three years. The institution will be formed in Hong Kong, the special administrative region of China.
Bank Asia says it wants to use the new institution to take advantage of the growing trade and investment opportunities between Bangladesh and China. The proposal to form the subsidiary in Hong Kong was approved at a meeting of the board of directors.
Several formalities remain before the institution can begin operating. Approval must be obtained from Bangladesh Bank, the institution must be registered under Hong Kong's existing laws and regulations, and a money lending licence must be obtained. Operations will start only after all approvals and formalities are completed.
The proposed subsidiary will operate under a money lending licence. Through it, Bank Asia wants to strengthen its cross-border trade finance business alongside expanding its international banking operations.
According to the bank, forming the subsidiary in Hong Kong could increase its participation in financial services related to international trade and investment and create scope to expand its business outside the country.
