Washington, May 10 (IANS): The US Federal Reserve has announced its approval of China's largest bank to purchase a US bank and two other large Chinese banks to expand their business in US banking market.

The Fed said in a statement that it has approved the Industrial and Commercial bank of China Limited, China's largest bank, and two other Chinese investing firms to become bank holding companies by acquiring up to 80 percent of the voting shares of The Bank of East Asia USA, located in New York city.

The Bank of East Asia USA has total assets of approximately $780 million and operates 13 branches in New York and California, reported Xinhua.

The Fed also approved an application of the Bank of China, the third largest bank in China, to establish a branch in Chicago and an application by the Agricultural Bank of China, the fourth largest bank in China, to set up a branch in New York City.

The applications were approved after the conclusion of the fourth round of China-US Strategic and Economic Dialogue last week. The US officials were positive during the meetings about applications from China's major banks for mergers and new branches in the US.