ABC firms up support for Xinjang development

Chinese banks and neighbor banks should enhance cooperation between Asia and Europe amd the rapid development of Xinjang, said Mr. Che Yingxin, Chairman of the Agricultural Bank of China.

This could be accomplished by providing firm financial support for the integration and prosperity of regional economy.

ABC has two provincial branches in Xinjiang — Xinjiang Branch and Corps Branch, under which outlets are everywhere in local areas. At the end of June 2011, deposits and loans of the two branches have reached RMB191 billion and RMB57.4 billion respectively. Furthermore, Xinjiang Branch and Corps Branch ranked first and second respectively among local peers in terms of market share, and were among the top with respect to many operational indicators.

To support Xinjiang’s leapfrog development, ABC has set out 39 suggestions and signed agreements on overall strategic cooperation with the autonomous region and the corps. According to the agreements, ABC undertakes to provide up to RMB200 billion of credit line in the next ten years for infrastructure, low carbon economy, border trade and “Sannong” (agriculture, rural areas and farmers) services, contributing its utmost to the economic development of Xinjiang.

At the symposium on financial support for Xinjiang’s leapfrog development, Mr. Che Yingxin put forth three constructive suggestions: First, to provide higher credit line with a focus on key fields, including the construction of the “Six Bases” of the autonomous region and the “Five Industrial Systems” of the corps, “Sannong” services and county-level economic development, growth of medium and small enterprises, construction of infrastructure and government-subsidized housing, and border trade. Special attention will be paid to implementing the project of enriching 200,000 rural households in Xinjiang, so as to let ABC’s financial services benefit farmers in a real sense.

Second, to further promote the service capability and efficiency of ABC Xinjiang Branch and Corps Branch by improving the guarantee mechanism. By granting separate credit lines to the two branches, ABC Head Office will provide additional credit line of RMB 3 billion this year to ensure a loan increment larger than the actual one of last year and that the two branches are free from restriction by credit line during the season for spring ploughing. As for those key customers and projects in Xinjiang, ABC shall adopt more flexible credit policies, grant the two branches larger authority for product innovation, further optimize the procedure and chain, improve the efficiency of review and approval, and respond more quickly to the market demand.

Third, to consolidate the management foundation and promote risk control capability. By carrying out the campaign of "Year for Basic Management Promotion",  ABC shall enhance its awareness of risk prevention, hold the bottom line for risks, and carry out delicacy management to ensure the steady and sustainable development of the two branches and achieve a win-win situation of supporting the local economy and realizing its own development.

ABC shall also strengthen its cooperation with the local government and peers to improve the credit environment and create a favorable financial eco-environment.