Bank of China-Temasek JV to launch first branches

JV aims to hire 14,000 staff and open 400 branches as it compete with AgBank-StanChart JV.

Bank of China and Temasek's joint banking venture will open its first two China branches in January, a source close to the situation said on Wednesday, posing competition for another joint venture, between AgBank and Standard Chartered.

The branch opening marks the latest effort by Singapore's sovereign wealth fund, Temasek Holdings, to tap China's solid growth by seeking opportunities to develop the mainland's rural economy.

"The opening is consistent with the Chinese government's policy, which is to allow foreign firms to offer banking services in rural areas," said the source.

The tie-up, called "BOC Fullerton Village Bank" in Mandarin, would raise its headcount to 14,000 over the next few years from a workforce of 100 now, said the source, who had direct knowledge of the matter but who is not authorized to speak to the media.

It also plans to establish a 400-branch network across China in provinces such as Hubei and Jiangsu over the longer term, after receiving licenses from authorities to open 30-50 branches, the source said. The first two will be located in Hubei.

A Temasek spokesman declined to comment.

View the full story in Reuters.