(Bloomberg) -- ICBC Financial Services, the U.S. brokerage unit of Industrial & Commercial Bank of China Ltd., is in strict compliance with local regulatory policies and risk-management rules, according to a statement from ICBC USA.
The brokerage unit's leverage ratio, as calculated under requirements laid out by the Financial Industry Regulatory Authority, has been below 20 times over the past four years, which is “completely” in compliance with U.S. regulatory requirements, ICBC USA said.
Earlier this week, Bloomberg reported that ICBC had emerged as a major U.S. dealer in government debt repurchase agreements. The short-term loans allow investors to borrow money by lending securities, serving a vital role in day-to-day trading on Wall Street.
On May 30-June 2, ICBC Financial had leverage ratios of 18.47, 18.73, 17.63 and 19.07, respectively, ICBC USA said. Excluding “channel businesses,” the leverage ratio on each of those days was 6.58, 6.25, 5.6 and 6.96, it said.
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At the end of 2016, ICBC Financial Services had capital of $144 million, “far exceeding” the Securities and Exchange Commission's minimum $7.5 million regulatory requirement on net capital, ICBC USA said.
To contact Bloomberg News staff for this story: Jun Luo in Shanghai at jluo6@bloomberg.net.
To contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Darren Boey
With assistance from Jun Luo
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