2008 was no ordinary year. As the deepening financial crises slammed the breaks on the growth of the global economy, its impact on China's economy, especially the physical economy, began to be felt. To cope with this crisis and ensure continued economic growth, the government formulated a RMB 4-trillion stimulus program. It is widely thought that if this policy is to be successful in leading the economy out this ebb as soon as possible, credit support from the banks is vital.
To demonstrate this in the form of an actual case, during a bank-enterprise capital matchmaking meeting that was held in Fujian in September 2008, an entrepreneur from Fu'an looked particularly worried. Due to a drastic decrease in orders from abroad and the resulting pile-up of products, his company was facing a serious shortage in capital. If new sources of capital could not be found soon, bankruptcy would be unavoidable. However, upon meeting this same entrepreneur again after the Spring Festival, he seemed to be in much higher spirits. It turned out that he had secured a RMB 5 million loan from the Industrial Bank at that matchmaking meeting. This money saw his company through its darkest hour. After turning to the domestic market, the company soon began to make new progress.
This is but a single case of how the Industrial Bank supports economic development in Fujian Province . As a public commercial bank rooted in the west coast of the Taiwan Strait, the Industrial Bank has capitalized on the fact that it is a comprehensive operator based in the region to pool resources, attract capital from other parts of the country into the region and progressively increase the credit and financial services it provides to support economic and social development in the region. Data from the Bank indicates that by the end of 2008, the Industrial Bank had a loan balance of RMB 106 billion in Fujian , representing an increase of 28.3 billion over the start of the year. Credit expansion accounted for 28.5% of the total credit expansion of the Bank. Loan balance recorded an increase of 37% over the beginning of the year, which was 12% faster than the average growth rate in the Bank. Moreover, the average loan-to-deposit ratio (ratio of total bank loans/total deposits) of the Bank operating in organizations of Fujian Province averaged at 79.44%, which was 8.62% higher than the average in the Bank. In 2008 alone, the gross credit funds granted by the Industrial Bank in Fujian Province surpassed RMB 150 billion. These funds were used to provide important financial support to a number of major projects at both provincial and municipal levels, including the Fujian Highway, renovation of the main power grid, the Fuzhou-Xiamen Railway, Jimei Bridge, Wanbian Bridge, Nanping-Pu'nan HIghway, Quanzhou-Sanming HIghway, Project for the Integration of Refining and Chemical Industries in Fujian, Expansion of Zhangping Power Plant, and the Straits West Market of Metal Materials and Products in Sanming City.
Meanwhile, through financial innovation, the Industrial Bank transferred RMB 3.395 billion of credit assets and provided RMB 1.45 billion worth of trust financial services for credit assets in Fujian . This equivocates to a RMB 4.845-billion increase in credit and the effective expansion of its financing.
On the other hand, the Industrial Bank is an active proponent of green credit, and has made huge efforts to provide finance to energy saving and emissions reducing initiatives. It is dedicated to promoting the harmonious and ecological development of the west coast of the strait. By the end of 2008, the Bank had provided 14 loans to support energy saving and emissions reducing initiatives in Fujian province, totaling at RMB 425 million. Projects supported are expected to be able to reduce consumption of coal by 392,600 tons per year and cut carbon dioxide emissions by 1,038,600 tons per year.
The international and domestic situation in 2009 is set to be more complex and severe than before. Commercial banks will be tested by the chill that is to come. Despite this, the Industrial Bank is sparing no efforts to support the economic development of the straits west region that it is rooted in. Gao Jianping, the Secretary of the Party Committee and the Chairman of the Board of Directors of the Industrial Bank, indicated that in the coming year, the Industrial Bank will follow the steps of the Provincial Commission and the Provincial Government and focus on the theme of social and economic development in the west coast of the strait. The Bank's advantages in wholesale business will be bought into full play, and operational dynamics will be actively strengthened. It will march into the "main battlefield", and carry out mainstream business so as to closely integrate itself into the main current of social and economic development in the region.
Gao pointed out that in 2009, the Industrial Bank will give special attention to objective analysis and judgment of the actual operation status of industries and enterprises in the region. It will adopt a forward-looking view, and offer timely assistance where it is actually needed. Long-term mechanisms will be established and improved and a greater focus will be placed on supporting key projects, mainstay industries, key enterprises and the vast number of SMEs. The bank will continue to face difficult times alongside enterprises and seek to grow with them. (From: Straits Metropolitan News )