Brian Moynihan, chief executive officer of Bank of America (NYSE: BAC) is making his first trip to China this coming week in an effort to expand into China, according to a recent Wall Street Journal report. The bank is looking to take advantage of the country’s growth, which is the fastest growing economy in the world currently.
Bank of America had previously reported it would seek incorporation in China, which would let it expand the business it does in the country. U.S. banks that currently do business in China are usually involved in some form of joint-venture.
The bank holds a minority interest in China Construction Bank, which would normally be viewed as its conduit to do business in China, but that relationship is in transition, according to the report. That may be the catalyst for Bank of America’s move to seek local incorporation in China in order to do business on its own.
In the U.S., the bank is much more focused on the retail banking side of the business, with more than 6,000 retail banking locations.
News that Bank of America is seeking to expand business in China may receive mixed reviews by Americans as the bank’s efforts to help struggling homeowners stay in their homes can certainly be bumped up, along with working off continued loan losses.
The bank did payback TARP funds last quarter though, reporting a $194 million net loss due to that payment.
