Central Bank of Brazil (BCB) Approves XCMG’s First Overseas Bank
POUSO ALEGRE, Brazil, Nov. 18, 2019 /PRNewswire/ -- Banco XCMG S.A., XCMG’s (SHE:000425) first wholly-owned overseas bank, is set to open in six months in Pouso Alegre, following approval from the Central Bank of Brazil (Banco Central do Brasil, BCB). Banco XCMG S.A. is the first overseas bank of the Chinese manufacturing industry and the first foreign participant bank to receive direct approval from the Central Bank of Brazil.
Banco XCMG S.A. will support XCMG’s sales in the Brazilian market and offer financial products and services while aiding the development of XCMG’s distribution network. The primary financial services of the bank will focus on providing consumer credit, lease and financing services for XCMG’s FINAME series.
The new milestone marks the start of XCMG’s integration of industry and finance in Brazil and the breakthrough of Chinese assets in the South American financial services sector.
“The approval of XCMG S.A. by BCB will allow XCMG to explore a new, customer-centric sales model to further market expansion. The approval marks the transition of XCMG from a conventional manufacturing equipment manufacturer to a globally focused, integrated R&D, trade, finance and equipment manufacturing service provider,” said Wang Yansong, the VP of XCMG and the Chairman of XCMG Brazil.
As the first overseas bank in the Chinese manufacturing industry and first corporate bank by a China-invested enterprise in the Americas, the bank will gradually improve the Capital Adequacy Ratio (CAR) and will look to extend financial services to companies in XCMG Pouso Industrial Park and other Chinese companies operating in Brazil.
XCMG has served the Brazilian market since 2004. According to the Observatory of Economic Complexity (OEC), China became Brazil’s largest trading partner in 2009 with imports and exports totaling $75 billion in 2017. To better facilitate Brazil’s economic growth, XCMG opened the Pouso Industrial Park in 2014, which currently serves 123 dealers, maintenance and spare parts centres in Brazil and the wider South American region.
XCMG is a multinational heavy machinery manufacturing company with a history of 76 years. It currently ranks sixth in the world’s construction machinery industry. The company exports to more than 183 countries and regions around the world.