On October 26, the Industrial Bank, China's first Equator Bank, held the “2010 Bank-bank platform Cooperation Forum and Seminar on the Sustainable Development Strategies of Chinese Commercial Banks” in Taiyuan, Shanxi Province. Themed around the sustainable development of commercial banks, the forum involved discussions on cooperation between banks. The aim of the forum was to exchange experiences in sustainable finance, analyze the conditions and trends of the banking industry in the post financial crisis era, promote mutually beneficial cooperation between banks and boost the sustainable development of China's banking sector.
Participants of the forum included renowned economists Ba Shusong and Liang Xiaomin as well as representatives from the People's Bank of China, the China Banking Regulatory Commission and over 70 domestic and foreign commercial banks.
As the sponsor of the event, the Industrial Bank has conducted effective trials in sustainable development over recent years and integrated this concept into its corporate governance philosophy. The concept can be seen throughout the bank's operations, such as environment and social risk management, green credit, loans to energy saving and emission reducing projects and low-carbon products. These actions have turned the Industrial Bank into an industry leader in sustainable finance.
The Bank-bank platform is among the business modes developed by the Industrial Bank under the concept of sustainable finance over recent years.
By integrating its existing resources onto a single platform, the Industrial Bank is able to provide a range of products and services to city commercial banks, urban credit cooperatives, rural cooperatives, rural commercial banks, rural cooperative banks and township banks. These services help cooperative banks to improve their operation and management standards, enrich product lines and improve competitiveness. The platform aims to use these services to promote the modernization of small and medium banks.
Following several years of growth, the Bank-bank platform has made remarkable achievements in payment & settlement, wealth management, technology output, financing services, exchange agency, capital and assets/liabilities structure optimization, funds application and training & exchange.
For example, in a bid to address the shortage of outlets which is common in small and medium banks, the Industrial Bank has engaged in “Counter All-fast” business with over 50 small and medium banks. The number of connected outlets in this network has surpassed 12,000, which means that clients of these banks now find it easier to make deposits and cash withdrawals non-locally and the banks have gained an effective nationwide presence. In a bid to address restrictions on small and medium banks in terms of wealth management products and the resulting loss of clients and funds, the Industrial Bank has launched the agent-based selling of wealth management products and a wealth management portal under the Bank-bank platform, thereby helping small banks to meet consumer demands for wealth management, enrich product lines and bolster their client base. The Industrial Bank has astutely perceived the growing trend of township banks, and has launched township bank service solutions in response. So far, the bank has constructed core business systems for 5 township banks and provided agent connection to payment systems for 22 township banks, which have played an active role in the smooth establishment of township banks and the improvement of payment & settlement conditions.
The Industrial Bank expressed that the Bank-bank platform is not an exclusive platform for the Industrial Bank, but an open platform built, shared and owned by the Industrial Bank and its many partners. Cooperative banks come together to give play to their strengths and complement one another on the platform, which avoids the issue of homogenization in business. Such a model transcends competition and leads to a harmonious environment in which banks co-exist in a sustainable fashion.
At the meeting, the Industrial Bank also signed agreements for comprehensive strategic cooperation with the Shanxi Rural Credit Cooperative Agency and Shanxi Merchants Bank.