Dear customers:
Recently, China Banking Regulatory Commission (CBRC) issued the Circular on Regulation of Non-standard Operation of Financial Institutions in the Banking Industry. Based on a deep understanding of the tenet of the regulatory authorities to promote standard operation of banks and protect the legal rights and benefits of financial customers, IB abides by the concept of trustworthy and lawful operation and adheres to the principle of open and transparent prices matching quality to provide supr eme financial services to customers. Our bank will carefully enforce the “Seven Prohibitions” and “Four Opennesses”, and supervisions from all social circles are welcomed:
1. No conversion of loans into deposits. The credit business shall follow the principles of extending loans according to the real demand of borrowers and payment under consignment. The loan funds shall be directly paid to the counterparty of the borrower in full, and all loans cannot be converted into deposits in part as provided in any imperative terms or agreed through negotiation.
2. No link between deposits and loans. The loan business and deposit business shall be separated from each other strictly, and deposits cannot be taken as a precondition for examining and extending loans.
3. No charges based on loans. No charges can be collected f or the unreasonable intermediate business or other financial services which customers are required to accept when the bank extends loans or provides financing services in other ways to them.
4. No breakdown of floating interest into charges. The principle of separating interests and charges from each other shall be followed. Interest based businesses and charge based businesses shall be divided from each other in a strict sense, and no interest can be broke down into charges and it is prohibited to raise the interest rate in a convert manner.
5. No sale bound to lending. No financial products regarding wealth management, insurance and fund can be bound for selling when the bank extends loans or provides financing services in other ways to customers.
6. No floating to the top limit. The loan pricing shall fully reflect the capital cost, risk cost and management cost, and the loan interest rate cannot be floated to the top limit in all cases.
7. No cost shifting. The relevant costs regarding due diligence investigation and guaranty evaluation in the loan business and other services shall be borne pursuant to laws, and no operation cost can be shifted to customers in the form of cost.
Supervision and complaint telephone: 95561
It is hereby to announce as foregoing.
Industrial Bank
February 21, 2012