Dutch ING to decide China move in early 2009

BANGKOK (Reuters) - Dutch financial group ING (ING.AS) said on Friday it was looking for opportunities to expand business in China and expected to make a decision on whether to apply for a banking licence early next year.

"We are investigating if we are interested in applying for a wholly owned foreign bank in China. We have not decided yet," ING group director Hans van der Noordaa told reporters in Bangkok.

"We are in the process of doing our research and business case. I think somewhere early next year we will decide if we will apply or not."

Bancassurance and asset management businesses in China have strong growth potential and the Dutch bank already has a partnership with Bank of Beijing (601169.SS), said van der Noordaa, in the Thai capital to open a new training centre.

"There are many opportunities. We still see growth in China," he added.

Bank of Beijing, 16 percent owned by ING, said in October it was in talks to buy a 50 percent stake in one of ING's life insurance ventures in China from the venture's Chinese partner as it moves to diversify its business.

ING owns a 30 percent stake in Thailand's sixth-biggest lender, TMB Bank TMB.BK. It also has life insurance and asset management units in Thailand.

Elsewhere, ING would be more cautious about expanding in retail banking because of the global financial crisis, van der Noordaa said.

"In the short term, no clear plan for any other retail banks. We are focusing on executing the existing partnerships," he said, referring to alliances with Thailand's TMB and India's ING Vysys Bank (VYSA.BO), in which it holds a 44 percent stake.

"We are now a little bit more cautious because we want to make sure our capital base is well protected if financial markets continue volatile."

ING, the Netherlands' biggest listed bank, reported its first-ever quarterly loss on Wednesday as impairments on stocks and bonds, counterparty losses and property writedowns ate into its income.

($1 = 34.95 Baht)

(Reporting by Arada Therdthammakun; Editing by Alan Raybould)