The Los Angeles-based Cathay Bank said Wednesday it received approval to obtain 258 million U.S. dollars as part of the U.S. government's 700-billion-dollar program to bail out the country's banking sector.
The bank, which is California's first Chinese-American bank and mostly serves the ethnic Chinese community, plans to use the funds to expand services, according to Chief Executive Dunson Cheng.
Cheng said that the bank was considered "well capitalized" by regulatory standards.
"However, in view of the current uncertain economic outlook, we deem it prudent to participate in the (program) to position the company to expand its services to its communities and to enhance its strategic position," Cheng said.
Cathay Bank has 31 branches in California and 19 outside the state. It also has representative offices in Hong Kong, Shanghai and Taipei.
Cathay joins other Los Angeles community banks, including East West Bank and Nara Bank, which said last week they would participate in the Troubled Assets Relief Program. City National Corp. last month became the first Los Angeles-based bank to accept government investment.
Source:Xinhua
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