Economic Minister Mohamed Saeed has revealed that the Industrial and Commercial Bank of China (ICBC), the largest bank in the world by total assets, is in discussions to open a branch in the Maldives.

In an interview with state media, PSM, Minister Saeed said that earlier this year during his visit to China, President Dr Mohamed Muizzu held talks with Chinese President Xi Jinping and proposed the establishment of an ICBC branch in the Maldives.

"The same negotiations are underway. The free trade agreement is now complete and the free trade agreement will be activated when the two countries agree," he said.

An MOU was also recently signed which allows current account transactions in local currency between China's central bank People's Bank of China and the Government of Maldives. This will make it easier for Maldivian businesses to import from China and increase cross-border investments between the two countries, the Ministry of Economic Affairs said.

Industrial and Commercial Bank of China (ICBC) is the largest of the China-based mega-banks and is a publicly traded company on the Shanghai Stock Exchange, with the Chinese government owning the majority of the shares. In addition to its main operations in China, ICBC has branches in several countries around the world and owns several foreign subsidiaries.