INDUSTRIAL and Commercial Bank of China Ltd. (ICBC), China’s biggest bank, has become the country’s first bank to buy a precious metals vault in Britain, cementing its role as a major player in the gold market.

    ICBC has bought the London vault, used to store also silver, platinum and palladium, from British bank Barclays, which is exiting the precious metals business as it looks to streamline operations after recent turbulence across the group.

    Jon Spall, founder of consultants G Cubed Metals, said yesterday that ICBC’s purchase of a vault able to store 2,000 tons of gold showed Chinese “commitment to the international bullion market by becoming a market maker.”

    According to ICBC, the vault is one of the largest in Europe and is used to store precious metals “in support of the London market.”

    Mark Buncombe, head of commodities at ICBC Standard Bank, said in a statement that the purchase for an undisclosed sum would help ICBC “become one of the largest Chinese banks in the precious metals market.”

    “The acquisition of a precious metals vault allows us to expand our services in clearing and processing,” Buncombe said.

    ICBC Standard was formed last year after ICBC bought a controlling stake in South Africa’s Standard Bank Plc.’s global markets business.

    (SD-Agencies)