Industrial and Commercial Bank of China Ltd, the world's largest lender by market value, said on Friday it has set up a subsidiary in Sao Paulo, Brazil, Latin America's largest economy.

Brazil's central bank approved the license on Dec 19.

"Establishment of the Brazilian subsidiary is another major breakthrough we made in South America after we entered the Peruvian and Argentinian markets. It means our service network in South America has been primarily formed and our capability of global services has been further improved," ICBC said in a statement.

Zhang Hongli, a vice-president of ICBC, said, "The subsidiary will play a bigger role in facilitating bilateral trade and investment between the two countries, on the basis of more integrated business with the other two institutions on the continent."

China is Brazil's largest trade partner.

According to data from Chinese customs, bilateral trade has grown by more than 40 percent since 2009.

ICBC said earlier: "Close economic ties between China and Brazil provide enormous potential for financial business. What's more, the upcoming 2014 World Cup and 2016 Olympic Games in Brazil will bring great business opportunities for our local subsidiary."