Chinese banks will increase Latin American footprint

Subject

The outlook for Chinese banks in Latin America.

Significance

Commercial banks from China have been increasing their footprint in Latin America in recent years. The latest example of this growing trend came in May when Chinese lender Bank of Communications (BoCom) announced it would purchase control in Brazilian Banco BBM, coinciding with the visit of China's Premier Li Keqiang.

Impacts

• This growing presence will support the increasing number of Chinese companies that are "going global".
• Expanding Chinese banks can contribute to growth and job creation in Latin America's services sector.
• Chinese appetite for banking assets will broaden the range of potential buyers for Latin America's many family-controlled banks.