Weak dollar brings U.S. bank to local market

Published: 11 January 2005 y., Tuesday
The weakening U.S. dollar, along with emerging investment opportunities in Central and Eastern Europe following enlargement of the European Union, is providing a strong incentive for U.S. financial institutions to enter the Czech market. U.S. banking group KeyCorp became the first to do so when it announced last month that it was heading to the Czech Republic. The country is likely to serve as a take-off point for KeyCorp's activities in the region, said Daniel Brzkovsky, head of the group's Czech partner, Key Investments. "KeyCorp is set to launch its activities here in the first half of next year," Brzkovsky said. "It'll focus on trading with mutual funds and on corporate finance." KeyCorp won't be opening any retail-banking facilities in the country, and its operations will be based at the offices of Key Investments, Brzkovsky said. Cooperation with KeyCorp initiated the re-branding of brokerage firm SI Asset Management to Key Investments in November. The company had revenues of 15.3 million Kc ($651,000) last year and reported 443,000 Kc in net profit. Brzkovsky said that the collaboration with KeyCorp will help the firm penetrate other markets in the region. Key Investments will assist in selling mutual funds of Victory Capital Management, one of KeyCorp's units, and help launch new products as well as provide asset management and consulting services.
Šaltinis: The Prague Post
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