Report of US 'delay tactics' over Chinese banks refuted

The banking regulator has refuted earlier reports that the US Federal Reserve "deliberately delayed" the approval of applications by two Chinese banks to open branches in the US.

Commenting on the reported delays, Liu Mingkang, chairman of the China Banking Regulatory Commission, was quoted by Bloomberg as saying, "there is no delay, (Fed Chairman Ben S. Bernanke) told me there are no questions regarding the ability of the regulator of the home country and the banks." However, Liu did not say when the approval was expected.

His comments were made days after the Financial Times reported that the US had delayed granting licenses to Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB) because regulators were said to have shown concern that the Chinese banks were controlled by China Investment Corp, a sovereign wealth fund.