Chinese, Brazilian banks receive authorization to operate in Chile

Chile's banking regulator SBIF has granted provisional authorization for China Construction Bank and final authorization for BTG Pactual Chile to start banking operations in the country.

The approval is part of China Construction Bank's entry into the Latin American Spanish-speaking banking market. The bank is looking to work with Chinese companies that have infrastructure projects in Chile, Diario Financiero said in a release.

The bank is the sixth largest in the world in terms of market capitalization.

China Construction Bank still needs to receive a resolution approving its application to establish a foreign bank branch and approval to begin operations.

Having obtained a permanent license, BTG Pactual can provide loans in local currency and compete in the Chilean market as the company seeks to invest outside of Brazil due to the country's economic slowdown.

The company currently employs 400 people in Chile and offers brokerage, asset management and other services.