China’s Banks May Have Growth Market in L.A.
U.S. regulators often move slowly in approving expansion plans for foreign state-owned financial institutions. Part of that reluctance is due to concerns about the role played by the government in the banks’ operations, said Walter Mix, a former commissioner of the California Department of Financial Institutions. In addition, “The quality of the financial supervision in the home country may not be up to U.S. standards.”
Mr. Mix called the Fed’s decision “precedent setting” and said it will likely open the door for additional Chinese banks to enter the United States.