Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    CCB ramps up fintech efforts

    By JIANG XUEQING | CHINA DAILY | Updated: 2020-09-10 09:05
    Share
    Share - WeChat
    A private enterprise owner answers queries from CCB employees at a chemical fiber production unit in Nantong, Jiangsu province, in June. XU JINBO/FOR CHINA DAILY

    State-owned bank leverages big data, internet to increase funding avenues for small businesses

    China Construction Bank Corp applied financial technologies such as big data to the innovation of digital operating models and reconstruction of the credit granting process during its strategic development of a framework for financial inclusion.

    The second-largest State-owned commercial lender by assets in China created accurate customer profiles by introducing more than 30 categories of data from the government and third-party institutions and cross-check the external data with the internal data from the bank to solve problems of information distortion and information asymmetry that exists between financial institutions and small businesses, said Liu Guiping, president of China Construction Bank.

    To ensure the development of financial inclusion, which means that individuals and businesses have access to affordable financial products and services that meet their needs, the bank has realized smart risk management by innovating several hundred data models and having risk control standards embedded in its system.

    After the COVID-19 pandemic broke out this year, the bank increased credit supply to small businesses and combined efforts to stabilize enterprises, sustain employment and promote the development of financial inclusion.

    At the end of the first half of this year, its outstanding balance of inclusive loans to micro and small businesses with a total credit line of up to 10 million yuan ($1.46 million) per borrower reached 1.26 trillion yuan, up 51.5 percent year-on-year.

    The number of clients that still have inclusive loans at the bank increased by almost 30 percent year-on-year to 1.59 million.

    CCB launched policies to incentivize client managers at various levels of bank branches to ramp up credit support for small businesses.

    It lowered the funds transfer pricing rate assigned to inclusive loans by up to 165 basis points, compared with the FTP rate assigned to other types of loans.

    Funds transfer pricing is a method used by banks to measure how each source of funding contributes to their profitability and to measure the performance of different business units of a bank. The cut in the FTP rate assigned to inclusive loans allows the bank to offer loans to small businesses at lower rates than before.

    CCB also increased the performance appraisal score associated with inclusive loans to 13 out of 100, up from 5 out of 100. The evaluation requirement is higher than regulatory requirements.

    "We hope to extend the lifespan of micro and small businesses by supporting them with the issuance of inclusive loans," Liu said on Monday.

    For the majority of small businesses that received loans from CCB, their average lifespan is five to six years, whereas the average lifespan of small businesses in China is about three years.

    Under its current business model driven by financial technologies, the bank's nonperforming loan ratio of new inclusive loans was less than 1 percent, down from over 4 percent in 2017.

    At the end of the first half, the ratio of its collateral-free loans for small businesses to inclusive loans rose by 3 percentage points from the end of last year. The number of new clients that have never received loans from banks increased by nearly 40,000 during the first six months.

    With the aim of helping small businesses get through hard times, CCB also allowed 80,000 small businesses hard hit by the pandemic and facing temporary liquidity difficulties to delay payments on principal and interest of loans worth more than 40 billion yuan by the end of June.

    Since the pandemic started, the bank has lowered its rate of new inclusive loans by 0.75 percentage point. On this basis, it has further cut the lending rate for businesses that were temporarily affected by the pandemic by 0.4 percentage point, Liu said.

    China encouraged banking institutions to strengthen risk management, reduce their costs and improve efficiency for small business lending by adopting financial technologies.

    The China Banking and Insurance Regulatory Commission's Zhejiang Office launched an online provincial-level platform of comprehensive financial services in November.

    The platform gathered a large amount of data from 54 provincial government departments, which accounted for 70 percent of the information on a business that client managers need to know when they conduct due diligence before a lending decision is made, said Zhang Yourong, spokesman of the CBIRC's Zhejiang Office.

    With the help of the platform, client managers are now able to complete pre-lending investigations in a few minutes, rather than a few days.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    免费无码婬片aaa直播表情| 亚洲精品无码MV在线观看| 伊人久久综合无码成人网| 亚洲AV无码一区二三区| 午夜福利无码不卡在线观看| 最新中文字幕在线观看| 中文字幕精品无码久久久久久3D日动漫| 无码一区二区三区老色鬼| 蜜桃无码一区二区三区| 在线观看中文字幕| 亚洲中文字幕无码一去台湾| AV无码久久久久不卡网站下载| 最近中文字幕大全2019| 中文字幕亚洲免费无线观看日本 | 亚洲VA中文字幕不卡无码| 极品粉嫩嫩模大尺度无码视频| 十八禁无码免费网站| 亚洲av永久无码精品漫画| 亚洲中文字幕无码久久综合网| 人妻精品久久久久中文字幕| 欧美在线中文字幕| 久久超乳爆乳中文字幕 | 日韩精品人妻一区二区中文八零| 久久精品无码专区免费青青| 无码精品国产VA在线观看DVD| 亚洲不卡中文字幕无码| 国产成人无码区免费内射一片色欲 | 国产色综合久久无码有码 | 最好看的电影2019中文字幕 | 超清纯白嫩大学生无码网站| 日韩精品人妻系列无码专区| 无码日韩精品一区二区免费| 性无码一区二区三区在线观看| 亚洲AV无码专区国产乱码4SE| 成人无码免费一区二区三区| 在线a亚洲v天堂网2019无码| 伊人久久无码中文字幕| 最新无码A∨在线观看| 亚洲国产精品成人精品无码区在线 | 精品久久久久中文字幕日本 | 惠民福利中文字幕人妻无码乱精品|