Recently, the Monetary Authority of Singapore approved the upgrading of the Agricultural Bank of China Limited (“ABC”), Singapore Branch banking licence from “offshore banking licence” to “wholesale banking licence”. The approval affirms Singapore Branch’s effectiveness in risks management, internal controls and technology development, thereby enabling ABC to continue its business expansion in Singapore, an international financial centre.

After the upgrading of the Singapore Branch banking licence, the Branch no longer faces any restrictions for its Singapore Dollar-denominated assets size, which enables the Branch to further integrate into the local market. At the same time, the regulatory restrictions on the Branch are also greatly reduced. Singapore Branch is not only allowed to accept foreign currency deposits but also Singapore Dollar deposits. These further enhance its sources of funds and reduce its funding costs and increase its profitability. In addition, the wholesale banking licence also help lay a strong foundation in developing its investment banking businesses and participating in the local capital market.