ADB invests in city commercial bank in Hangzhou
(Xinhua)
Updated: 2006-08-24 14:56
The Asian Development Bank (ADB) will help reform China's commercial banking
sector on the city level by taking a minority stake in Hangzhou City Commercial
Bank, an ADB report said on Thursday.
ADB will invest up to 30 million
U.S. dollars in Hangzhou City Commercial Bank, one of the leading city
commercial banks in China, equivalent to about five percent of the total
outstanding shares, the report said, adding that the signing took place in
Hangzhou on Thursday.
City commercial banks in China play a vital role in and around the cities
they serve, especially in the development of small- and medium-sized
enterprises. However, they have to address some significant issues before they
can improve, including strategic risk, poor corporate governance, weak risk
management, and low capital adequacy ratios
"Through this investment, ADB will be helping Hangzhou City Commercial Bank
in developing corporate governance and internal control procedures, as well as
in opportunities for commercial cooperation," said ADB Principal Investment
Officer William Willms.
Hangzhou City Commercial Bank is the fourth largest commercial bank in
Hangzhou, a city that thrives on private sector economy activity, with about
26,000 corporate customers and 1.5 million individual customers, said the
report.
(For more biz stories, please visit Industry Updates)
|
