CIMB Group Singapore is still keen to have a Qualifying Full Bank (QFB)licence in Singaporedespite the republic requiring foreign banks with large deposits to incorporatetheir retail operations locally.

Late June 2012, the Monetary Authority of Singapore (MAS) said foreignbanks that fell under the QFB programme must also meet the republic'sstringent capital requirements.

CIMB was not deterred by the new rules. Instead CIMB Group Singapore was encouraged by MAS'announcement that it would continue to consider awarding new QFBs to foreignbanks operating in Singapore.

Such licences were awarded by MAS under the free trade agreementnegotiations.

QFBs enjoy greater privileges, such as being able to open severalbranches in the city-state and accept retail deposits. MAS is consideringgranting foreign banks that incorporate locally and are sufficiently localisedto open an additional 25 places of business, of which up to 10 may be branches.

CIMB Group Singapore currently has a two-branch banking operation thatwas once part of Malaysia'sSouthern Bank, which it acquired in 2006.

Without the QFB,CIMB expansion in the city state is limited.

CIMB also has stockbroking and corporate-finance businesses in Singaporewhen it acquired GK Goh in 2005.

CIMB Bank Singaporehopes to account for 10 per cent of the group's earnings by 2016, withIndonesia and Malaysia contributing 35 per cent each, Thailand 10 per cent andthe final 10 per cent from the businesses in other markets.