The bank is the first to get the approval of authorities to conduct digital banking activities in the special economic zone, and will use this to build a digital financial ecosystem that services customer needs.
Labuan Financial Services Authority has approved China Construction Bank Labuan Branch (CCBL) to conduct digital banking activities in the Labuan International Business and Financial Centre (IBFC), the two parties announced in a joint statement on Monday.
CCBL is the first bank to get such an approval. According to the «Fintech Malaysia» news portal, it was granted on the basis that CCBL has an existing digital banking services license in China and commercial license in Labuan, which means that it is not a license to operate a digital bank.
«Essentially, CCB is supporting key customers of Belt and Road Initiative (BRI), bilateral trading companies and local large-scale infrastructure construction projects which are also in tandem with the development of Labuan IBFC’s banking sector in the era of fintech or digital evolution in the global financial industry,» the statement said.
Offshore Financial Center
Labuan, located off the northwest coast of Borneo, Malaysia, was set up as an international offshore financial center in 1990. It aims to serve the needs of companies and private investors looking to establish a foothold in the region.
Although located in the heart of the worlds fastest, growing wealth region, it has been overshadowed by its heavyweight neighbors Hong Kong and Singapore.
China Construction Bank, founded in 1954 and headquartered Beijing, is one of China's «big four» banks.
