Bank of China seeks to expand into Turkey

Bank of China will seek approval to expand its operations in Turkey, highlighting efforts by the two countries to boost business ties, according to sources familiar with negotiations.

The move by China's fourth biggest commercial bank comes as another Chinese lender, the Industrial and Commercial Bank of China (ICBC), took over a majority stake in Tekstilbank early 2015 to become the first Chinese bank operating in Turkey.

Officials from the Turkey's Banking Regulation and Supervision Agency (BDDK) and Bank of China executives, including the agency's head Mehmet Ali Akben and Bank of China Vice President Gao Ying Xin, met on Sept. 10 to discuss the plan's legal formalities.

"The Chinese bank will apply to obtain a license in the forthcoming days and will start to operate next year in Turkey," a source said.

It was not clear how much capital the bank is seeking to invest, although Ankara requires a minimum of $300 million in registered capital.