Big Four stop doing business with North Korean bank

Increases pressure on North Korea to abandon nuclear power program.

China’s Big Four state-owned banks last week cut-off financial dealings with North Korea's state-run Foreign Trade Bank. Industrial and Commercial Bank of China, Agricultural Bank of China and China Construction Bank followed the lead of Bank of China, the nation's biggest foreign exchange bank, in severing business with the North Korean bank.

Analysts said the move can be considered financial sanctions by the Chinese government on North Korea for its recent ballistic missile launch and third nuclear test. China is traditionally North Korea's closest ally and a major economic benefactor.

CCB also halted remittances and other transactions with North Korea and said it has consistently carried out operations in strict compliance with instructions from the Chinese government and UN Security Council resolutions. ICBC and AgBank also said they no longer handle remittances to North Korean banks.

Analysts said the suspensions are also aimed at intercepting funds North Korea needs to invite nuclear engineers or purchase nuclear-related parts from abroad.