Recently, the Industrial Bank (IB) and renowned publication Banker Magazine held the First Joint Meeting of Bank-to-Bank Platform Counter-Interconnected Banks in Baotou City, Inner Mongolia. Representatives from 50 banking institutions as well as leaders from the Financial Research Institute of the Chinese Academy of Social Sciences attended the event to discuss the development of counter-interconnection between banks.
The Industrial Bank released a series of documents during the meeting, such as Rules for Bank -Bank Platform Counter-Interconnection Business , The Articles of Bank-Bank Platform Counter-Interconnection Cooperation , Charge Rate of Bank-Bank Platform Counter-Interconnection Business and Contingency Plan and Measures for the Error Handling of Bank-Bank Platform Counter-Interconnection Business. These documents were prepared by integrating the extensive range of opinions forwarded by collaborating banks, and thus represent a consensus between the banks. The documents are intended to standardize the procedures of the various transactions in counter-Interconnection business, ensure the quality of services provided and drive-on the sound and sustained development of this area of business.
The Bank-Bank Platform counter-Interconnection system is a unique mode of cooperation between banks developed by the Industrial Bank on the basis of its original counter-connecting system. By becoming a part of this system, the interconnecting banks can not only link the counters to IB counters for the realization of universal deposit and withdrawal for clients of both parties, but can also achieve such a link with other interconnected banks via the Industrial Bank. This magnifies the effects of interconnection, and is a highly effective way for small and medium banks to expand their channels and services. Counter interconnection has become a new option for many customers conducting deposit and payment transactions across provinces and banks due to its safety, ease and real-time transfer speed. Counter-interconnection has received a notable response from collaborating banks. As of the end of July 2009, a total of 59 banks had entered into a Bank-Bank Platform counter connection agreement with IB. Of these 59 banks, 27 have entered into a counter-interconnection cooperation agreement with IB and 14 banks have been successfully linked. From January to July 2009, a total of 135,400 counter-interconnection transactions were conducted, amounting to RMB 12.137 billion.
The Industrial Bank is committed to becoming a professional banking service provider for small and medium-sized financial institutions”. In 2005, it made a pioneering move by launching the bank-bank platform, which is able to link banks together and realize mutual agency. By sharing resources and channels with collaborative banks and providing support in the form of processional products, the platform is able to provide banks with a comprehensive financial service solution covering payment and settlement, wealth management and technology management output.
Over the last five years, the Bank-Bank Platform has gradually become a mutually beneficial financial service platform built and enjoyed by the Industrial Bank and the collaborating banks.
The collaborating banks are able to provide a wide-range of customers more convenient outlet services and more superior integrated financial services. This is achieved by participation in Bank-Bank Platform cooperation so that each bank can give full play to its own strengths in the mutual agency of various areas of business. This brings about a mutually beneficial situation where banks grow and prosper together as they complement one another.
As of the end of July, 2009, 210 banks had signed-up for the Bank-Bank Platform, with 140 already having been linked to the network.