Two of China's top four banks have reached a major agreement
which will result in them? cooperating in a range of services.
The China Development Bank (CDB) and the China Construction Bank
(CCB) announced their agreement in a news release Tuesday.
Two of China's 'Big Four' banks, the CDB and the CCB, have said
they are to share services and cooperate in a number of areas
including syndicated loans, asset management, funds settlement,
asset securities, joint bank cards, service for small and
medium-sized enterprises and property financing.
The two pledge to "actively seek out mutually-beneficial
cooperation and use of each other's advantages."
CDB, in tandem with two other policy banks which provide
government-ordered financing for agriculture and foreign trade, was
set up in 1994, devoting itself to loan support for the nation's
infrastructure and high-tech industries.
CDB's financing projects are usually larger and more
comprehensive than those covered by commercial banks. The bank has
been planning to gain a foothold in the commercial banking business
in recent years and expanding its role as an instrument of State
policies.
Chen Yuan, governor of the bank, was quoted by a Chinese
newspaper as saying last week that "We are now more than just a
policy bank," although he added that they would, "continue
infrastructure lending and address challenges such as
infrastructure and the environment."
CDB reported a net profit of 22.8 billion yuan (US$2.8 billion)
in 2005, a record high, and an increase of 31 percent from a year
earlier.
The bank's total assets reached 1.9 trillion yuan and total
lending grew to 1.7 trillion yuan by the end of last year, when the
non-performing loan ratio stood at a mere 0.87 percent, earlier
figures show.
CCB said it took the lead among commercial banks to team up with
CDB in 1994 and has since maintained sound relations with it in
bonds related business including investment, borrowing and?
buy-back. There was also agent business on loans and funds
settlement.
(Xinhua News Agency March 30, 2006)