SHANGHAI - Bank of Beijing , 16 per cent owned by ING , said on Saturday it would give a $190 million (S$289.3 million) credit to the Dutch financial group.

ING will use the 18-month facility to develop its China business in areas such as interbank lending, foreign exchange trading and loan guarantees, the medium-sized Chinese bank said.

Bank of Beijing, which has a strategic alliance with ING, said the facility was provided on commercial terms and based on market prices.

ING, which received a 10 billion euro cash injection from the Dutch government in October after the global financial crisis caused its stock price to plunge, has since said it wants to continue expanding in China and might apply for a full Chinese banking licence next year.

Since the crisis worsened in the second half of this year, some foreign banks have found it difficult to borrow money in China's interbank market as Chinese banks have become wary of counterparty risks. -- THOMSON REUTERS