Bank of China Signs All-round Cooperation Agreement with Beijing Rural Commercial Bank

The Signing Ceremony of All-round Cooperation Agreement between Bank of China (BOC) and Beijing Rural Commercial Bank (BRCB) was held on January 24th. BOC President Li Lihui, Assistant President Zhu Xinqiang, BRCB President Jin Weihong, Vice President Jiang Chao and Assistant President Cui Jun attended the ceremony.

There are lots of complementarities and cooperation room between BOC and BRCB, in this regard the two parties cooperation would achieve a win-win even multiple-win situation.

With a splendid and long history of nearly one hundred years, BOC has become the most internationalized commercial bank in China. BOC is taking the leading role in banking services and performance. Relying on its long history, strong strengths, prudent operation, world-wide branches and institutions, mature products and rich experiences, BOC has its services covering traditional commercial banking, investment banking and insurance services and provides multi-level and high-quality financial services worldwide.

It has created an outstanding brand and established long-term cooperative relationships with customers. On August 26, 2004, Bank of China was successfully reconstructed into Bank of China Limited, which injected new energy into this one-hundred-year brand and marked a new stage of development. On July 14, 2004, BOC succeeded in becoming the only banking partner of Beijing 2008 Olympic Games, which illustrated its comprehensive strengths to the whole society.

For the purpose of promoting the reform and growth of domestic financial sector and boosting inter-bank business cooperation, according to the principles of equality and mutual benefit, mutual support, strengthening cooperation and joint development , BOC and BRCB have established all-round cooperative relationship to complement advantages, share business resources, create opportunities for development and enhance the capacity of risk prevention.

According to the agreement, both banks will intensify the cooperation in terms of financial business, corporate banking, personal banking, international settlement and human resources exchange and training. System of regular contacts will be established between both banks, in which information on customers and policies can be exchanged.

In the market competition, BRCB and BOC will make use of the other party s financial products and services.

The signing of the agreement will push the cooperation between BOC and BRCB into a new substantial stage. As a new shareholding commercial bank focusing on retail, BRCB has unique advantage of backwardness. One of its advantages is its close business ties with agriculture, countryside and farmers. Plus its large number of outlets BRCB is to support the development of BOC in rural area.

Meanwhile, BOC will fully use its widespread domestic and overseas outlets, long-term experiences on international business, strong strengths of capital in local and foreign currencies, foreign exchange processing system and human resources to support fast development of BRCB on international and domestic businesses.

The cooperation will bring both banks more opportunities and space for development. Meanwhile, both banks will be promoted to provide better financial services and support local economic development, and will play active roles in directing social resources to be input in suburb of Beijing and speeding up the progress of industrialization and urbanization.

BRCB, established on October 19, 2005, is the first rural commercial bank and regional commercial bank with the largest capital up to now. In 2005, the historic leap was successfully made that Beijing Rural Credit Cooperatives Union was transformed into Beijing Rural Commercial Bank, and achieved double harvests both on reform and development.

Up to December 31, 2005, various deposits of BRCB had been up to RMB108.9 billion and the balance of various outstanding loans had been up to RMB54.4 billion. In the total loan, loans related to agriculture, countryside and farmers accounted for about 70% and both the amount and the rate of non-performing loan reduced.

Total business profit in 2005 reached RMB1.27 billion, an increase of 22.12% over the previous year. In 2006, BRCB will further solidify results of the reform and development. It has set the development strategy of focusing on one development objective , developing two markets , stressing three key pints , and winning four battles .

That is, BRCB will strive for creating modern shareholding commercial bank brand characterized by supporting agriculture, countryside and farmers; actively develop rural and urban markets; strictly manage risk prevention, transformation of internal operational mechanism and staff construction; and win battles in infrastructure, information construction, product innovation and marketing.