Mr. Huangju visited ICBC, Strengthening the Reform of State-owned Commercial Bank

Oct 26th, Mr. Huangju, Member of CCP and Deputy Prime Minister of State Council visited ICBC and sent his warmest regards to ICBC staff in front line. He also held discussions with ICBC Board of Directors, Council Board and High-Management Team and stressed them to thoroughly practice the Directives stated in Fifth Plenary Session of Sixteenth Congress of CCP, so as to continue to complete the corporate governance of a state-owned commercial bank, to strengthen internal control, to improve assets quality, to increase profitability and service level.

He urged the new ICBC to make new contributions to the stability, security and prosperity of China banking industry, to the development of national economy and to the harmony of a new society.

Mr. Huangju said: Central Party and State Council took high regards on the reform of state-owned commercial bank. Fifth Plenary Session of Sixteenth Congress of CCP stated to hasten the banking system reform and the restructuring of state-owned financial institutions. State-owned commercial banks are main financial entities in China. They are irreplaceable in developing economy society. As China's reform getting further, especially the transitional period of China accession to WTO is ending, banks will be more open to the world. Reform of state-owned commercial bank is imminent.

Mr. Huangju pointed out: ICBC is largest commercial bank on assets-scale in China and has made historic contributions in developing China economy. Financial reorganization, restructuring and strategic investors into ICBC is only means, not the final objectives. Establishment of Industrial and Commercial Bank of China Limited is only a beginning.

There will be many challenges in the next step. We still have a long, long way to go. We have to be clear-minded always, fully understand the long duration, complexity and difficulties of the reform. We have to start from new place, eying on new objective, strictly demand ourselves to complete in-detail all fundamental works at high standard in order to make the reform a full success.

Efforts should be seriously spent in further completion of a scientific corporate governance structure and strengthening the internal control and risk management. Internal reform should be in more detail, reform in management system and operation mechanism should be completed faster. Subsidiary organizations should be reorganized in much detail to ensure upper and lower branches are fully coordinated.

Credit management system should be enhanced further. A scientific advanced comprehensive risk management scheme should be in place soon. Internal audit scheme should be independent with an effective standardized internal control mechanism. Operation model and means of growth should be changed. Through learning from others, technology and products should be kept innovated to establish our own core competitiveness and creativity.

Look for good management staff and party personnel to manage the bank and to train their subordinates. Incentives should be given to all staff to improve service level by all means to manage ICBC well, grow well and build well.

Under State Council's approval, Industrial and Commercial Bank of China Limited ("ICBC" in short) was established on Oct 25. Industrial and Commercial Bank of China Limited is set up by Ministry of Finance and Central SAFE Investment Co. Ltd. Registered capital is RMB 248 billion. It took over all business and concerned assets and liabilities of former ICBC.

According to state's law and regulations, new company regulations are instituted, First Board of Directors and Council Board are elected, High-Management Team are appointed and an initial standardized corporate governance structure is in place.