Analysts say the bank's growing profits and ability to manage risks also paved way for its foray into the United States. The bank has undergone an astounding transformation in the last four years, culminating in October 2006 when it raised $22 billion in the world's largest initial public offering after completing its shareholding restructuring program.

The bank had cut its bad loan ratio in half to 2.41 percent from 2005 to the end of this June. It also had more than doubled its net profit to 83.7 billion yuan ($12.2 billion) at the end of 2007 and at the same time streamlined its portfolio. This year the bank has defied the sizzling U.S. subprime meltdown by recording a dizzying 57-percent increase in its first-half net profit thanks to its booming domestic credit business.

But the bank is not resting on its laurels.

"We cannot rely only on profits at home that leverage the deposit and loan interest rate differences," said Jiang Jianqing, Chairman of ICBC, in an article in China Securities Journal. ICBC plans to raise its overseas business to account for around 10 percent of its total assets and profit from the current 3-4 percent, Jiang said.

At the end of 2007, the bank's overseas network had expanded to 13 countries and regions, with 112 overseas branches. It also went on an overseas investment spree, purchasing a 20-percent stake in the Standard Bank of South Africa Ltd. for $5.46 billion last year. It was the biggest acquisition by a Chinese bank.

ICBC's past acquisition efforts have focused on Africa and Southeast Asia, where operation costs are lower. The proposed branch in New York could help the bank make acquisitions in the United States by offering information about potential takeover targets and adding to its bargaining power, Guo said.

The Fed's order prohibiting the New York branch from engaging in retail banking services would not hurt ICBC's prospects, Guo said. The Chinese companies that invest in the United States and the U.S. companies that have trade exchanges with China would comprise the bulk of the branch's customers, and their business would be buoyant enough to shore up ICBC's development in the United States, he said.

But Guo also cautioned that the bank must keep a vigilant eye on exchange risks, because the New York branch would still rely on its domestic headquarters to replenish its capital reserve.