China Banking Regulatory Commission (CBRC) issued a recent resolution, commending organizations and individuals in banking and financial industries of China on their excellent work in the last year in terms of loan business for small-and-medium-sized enterprises. Industrial Bank (IB) is included on the list of the excellent organizations and Huang Wan, Deputy Manager of IB Corporate Banking Department, is given the title of “Excellent Individual”.
Reports say IB gave special priority to enhancing financial services for small and medium-sized enterprises in recent years. In addition to research on Model of Loan Pricing for such enterprises, IB made progress with rewarding exploration in respect of organizational support, working flows, product innovation, assessment and incentive, as well as professional training.
To strengthen a professional operation and centralized management of loan business for small and medium-sized enterprises, IB conducts a forward-looking restructuring on management system, setting up corresponding professional sections of sales management with proportional client managers and inspectors as a team in three levels respectively, namely, the headquarters, the branches and the offices.
Depending on diverse regional economic environments, credit circumstances and risk control capabilities of IB branches, IB establishes a mechanism of authorization and sub-authorization in credit approval for small-sized enterprises. To satisfy the enterprises' urgent and frequent demands for loans, which will normally involve relatively small amount, IB introduced time management into the credit extension and approval system, enabling higher efficiency and more powerful supervision over such approvals.
As to loan pricing for small and medium-sized enterprises, IB takes into account factors including risk, overall benefits, client loyalty, as well as competition against counterparts, and develops its own model of loan pricing to bridge benefits and risk, and make automatic pricing for each loan possible.
As to operation procedures, IB adopts a “Double Witnesses” mechanism, which requests two inspectors for the investigation, special inspector for approval and verification before, during and after the credit extension.
As to development of information system, IB adds a catalogue labeling small-sized enterprises in related business systems, and creates platforms for information gathering, marketing management and independent business accounting, putting through independent auditing and assessment of credit extension for small-sized enterprises.
As to assessment and incentive, IB published favorable policies for small-sized enterprises with regard to economic capital allocation, benefit salary distribution and scale of special loans. Moreover, IB launches difference control and individual assessment for branches on a trial basis in accordance with five indexes, namely, newly-added credit extension clients, settlement volume, number of transactions, interest collection ratio per 10,000 RMB Yuan, and non-performing loan.
As to professional training, IB organizes long-term special trainings and tests in both the headquarters and the branches, covering various regulations, measures, working flows and innovative products for loan business targeting small-sized enterprises.
As to product innovation, IB‘s “Golden Sesame” financial service package, which is included in series “Wise Fortune” and is tailored for small and medium-sized enterprises, won the Best Financing Solution for Small and Medium-Sized Enterprises Awards given by China Association of Small and Medium Enterprises, China Banking Association and Financial News .