The Hong Kong branch of the Bank of Communications - the mainland's fifth largest commercial bank - will become independent from the Hong Kong-Macau Bank of China Group (BOC Group) on April 14.
The banks said yesterday that Shanghai-based Bank of Communications would resume overall management and take full responsibility for the Hong Kong branch operations.
The branch would no longer participate in BOC Group's intra-group services which were provided by the other 13 banks in Hong Kong and Macau.
BOC Group said the move was to conform with the mainland's financial reforms and the overall development of the Bank of Communications.
'Under the current financial system, it is not an appropriate arrangement for BOC Group to continue managing the Bank of Communications Hong Kong branch on behalf of its head office in the long run as both banks have competition too.' It said the separation had no impact on the group's business as the branch contributed less than 10 per cent in assets and deposits to the group.
It said none of the other 13 banks would be separated from the group.