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Supplement: Bank of China seeking excellent and sustainable growth
(chinadaily.com.cn)
Updated: 2009-03-04 15:53 In respect of operational risk management, BOC develops "Operational risk management policy framework" and defines the organizational structure, division of responsibilities, main tools and methods of operational risk management and lays a foundation for the establishment of operational risk management framework. Explore to establish operational risk classification framework, major operational risk incident reporting system and carry out pilot projects for operational risk and control assessment (RACA) and key risk indicators and other tools and make preparations for carrying out operational risk management in accordance with New Basel Capital Agreement. Through these measures, the quality of credit assets of COB continues to improve, and the balance and ratio of non-performing assets of the Group, domestic bank and overseas organs maintain the tendency of "Double drop". The impaired loan balance, impaired loan rate, new impaired loan rate and credit cost of the Group respectively reduced from 118.383 billion Yuan, 5.51 percent, 3.55 percent and 1.11 percent of the end of 2004 to 90.317 billion Yuan, 3.17%, 1.25% and 0.31% of the end of 2007. (VI) Innovative financial management taking the lead into International Accounting Standards In 1980, BOC took the lead in changing capital receipts-payment bookkeeping to debit-credit bookkeeping in china’s financial sectors and included it in the basic accounting system as one basic requirement of accounting, which provides a valuable experience for unified implementation of international general debit and credit bookkeeping in China in 1993. In 2004, BOC took the lead in classification, measurement and disclosure of bonds in the same domestic industry in accordance with the International Financial Reporting Standards. After share reform, BOC successfully completed the conversion work of 2002-2004 financial statements according to the International Financial Reporting Standards (IFRS). In 2007, BOC, due to its excellent preparation of financial statements, won the "Best Annual Financial Report Gold Award" issued by the global renowned marketing survey agency. In order to strengthen the cost control, since 1998, BOC began to implement "one city one financial center" financial management system in the whole bank, obtain the financial expense right, reduce financial management level and conduct a centralized and unified management on the costs. In respect of budget management, since 2001, BOC actively adapted to the requirements of business process integration and information disclosure, and began to carry out budget drafting from two dimensions of branches and business lines, focus on promoting the budget management of the head office and branches, and explore to establish a standard matrix type of budget management process, realize the organic combination of middle and long-term plan and annual budget and give full play to the important roles of budget management in the strategic objective assessment of the whole bank.
![]() In June and July of 2006, BOC was successfully listed in Hong Kong and Shanghai Stock Exchanges and became the first state-owned commercial bank of issuance and listing of A + H. II. Continuous business innovation ensuring the quality of reform and development of BOC Relying on the global service network and diversified business platforms, BOC continues business innovation, makes every effort to increase product variety, enhances the functions of the products and maintains an absolute leading position in the international settlement, foreign currency settlement, trade financing, financial transactions, syndicated loans, foreign exchange financing and many other business fields for a long term. (I) Favorably improving the finance business technical content of the company and enhancing the competitiveness of companies' clients Relying on strong investment banking platform, BOC continues to expand its business fields, provides its clients with integrated financial services including structural financing arrangements, listed bond-issuing consultants, M&A consulting, commissioned asset management, corporation credit service and overseas business consulting and so on, and takes an dominant position in such specialized fields as large shipping finance, aircraft leasing and so on in the domestic markets. BOC firstly launched syndicated loan business in the domestic business fields, led and participated in dozens of foreign syndicated loan projects, ranking first in the syndicated loan of China mainland. BOC emphasizes on supporting and helping small and medium-sized clients and endeavors to become the financial partners for small enterprises that meet the comprehensive needs in a high-efficient and professional manner. According to the development characteristics and financial ecological conditions of small enterprises in different areas, BOC launched a corresponding financial service mode of small enterprises. At present, BOC are drawing on the successful experiences and business modes of Temasek of Singapore in Indonesia, Malaysia and other countries, and designs and promotes the new business models of small enterprises by taking Quantitative Market Research, Streamline Business Processes, A Wide Range of Products and Services and Standardized Risk Management as a goal. As of the end of 2007, the balance of loans that BOC granted to small enterprises has been up to 101.7 billion Yuan, covering transport, wholesale and retail, computer services, catering and accommodation, education and many other industries. (II) Focus on developing personal financial services and improving the people's living quality China's reform and opening-up history is also a history of accumulating wealth among the people and improving the people's living standard. In order to adapt this trend, BOC adheres to carry through the Large-scale Retail development strategy, and endeavors to offer a diverse range of personal financial services. As of the end of 2007, BOC issued a total of 850.7 billion Yuan in housing loan and 157.5 billion yuan in automobile consumption loan, and helped a wide variety of individual clients achieve improving living conditions, as well as the dream of ownership of private motor vehicles. In 2004, BOC became the exclusive undertaking bank to issue the National Student Loans for 115 central subordinate universities and colleges all over the country. Since 2004, BOC granted the student loans of 9.9 billion Yuan accumulated to 0.92 million poor students for helping them achieve their dream of learning in a university successfully. In 1979, BOC began to transact the cash withdrawal business supported by DOMINION Credit Card of Hong Kong Bank of East Asia and took the first lead to introduce the credit card to China. In 1985, BOC issued the first credit card of our country. In 1987, BOC firstly launched ATM service in the domestic market, breaking the traditional practice of access and withdraw operations in the bank counters. In 1988, the Great Wall MasterCard foreign exchange card could be used in 10 million trade companies in more than 200 countries and regions in the world, symbolizing that China's credit card began to be on the world stage. In 1996, BOC was the first bank to issue the Great Wall electronic debit card for RMB with international standards. In December 2004, the first subject credit card of Beijing 2008 Olympic Games was launched in the world. BOC made pioneering contributions to the development of China’s credit card business. III. Offer services to the world and present the distinct features of BOC reform and development At present, BOC has set up more than 800 branches, sub-branches, companies and agencies in 29 countries and regions, possessed the largest overseas network of the same industry in China and became the commercial bank with the highest degree of internationalization in China. In recent years, BOC, in line with the local conditions, implements different policies in different banks and guide the overseas institutions to adjust operation orientation according to the local market demands, and excavate the potential business in-depth and greatly accelerate the overseas business development. BOC is becoming the world's best trade finance service bank and the largest multinational bank in the Asia-Pacific regions. BOC, by virtue of professional foreign exchange operations and network advantages at home and abroad, has become one of the main financial service providers of domestic export-oriented economy, which provides letters of credit, collections, guarantees, factoring, trade finance and other services for various "bringing in" and "going out" Chinese and foreign enterprises and plays a special important role in the fields of international settlement and trade finance. In 2008, the internal and external agencies of BOC has completed nearly 1.7 trillion U.S. dollars of international settlement business volume in accumulation, and became the first global commercial bank with more than $1 trillion of international settlement business volume and the largest global export factor. Because of its excellent performance in trade financing, BOC has been appraised as the “Best Trade Finance Bank in China” by the magazines of Global Finance, Treasury, and Trade Finance. BOC exerts its strengths of domestic and overseas networks, commercial banks, investment banks, insurance business and provides China National Petroleum Corporation, Sinopec, Minmetals, Huaneng, COSCO, CSCEC, CCCC, China Mobile, Huawei, ZTE and other domestic famous enterprises powerful supporting for carrying out multinational operations, which satisfy enterprise’s overseas financing, project purchase, financial management, financial consultancy, credit services and other needs; and issues tender, performance and advance payment guarantees for domestic foreign contracted project enterprises that meet the conditions, supports the projects of more than 80 large-scale contracted project enterprises in more than 60 countries and regions, with a contract amount up to $26.9 billion in total. IV.Strengthening the Party's construction and providing a strong ideological and organizational guarantee for the reform and development of BOC. BOC always adheres to the party's leadership, constantly strengthens the Party's construction and provides a strong ideological and organizational guarantee for the reform and development. In the past three decades, the Party committees at all levels has developed and implemented a series of new methods and measures for strengthening and improving the construction of grass-roots party organization and party member teams and given full play to the role central leadership of the party organizations by adhering to driving ideological and political construction depending on concept innovation. By the end of 2007, the whole bank has 8,6000 party members, among them, members of 35 years old or younger accounting for 30 percent and members with a college education accounting for 78 percent. The sustained optimization of party members’ age structure and knowledge structure and constant improving of overall quality played an exemplary and pioneering role in promoting the reform, development and safeguarding stability. In the first half of the previous year, the party committee of BOC made decisive decision-making and carried out effective command in the face of sudden 5.12 earthquake disasters and a vast of cadres and staffs fulfill their duties in a tight and orderly manner. BOC people united as one man like a fortress to lay a solid foundation for winning a great victory of earthquake relief. Through active donation and taking the initiative to pay the Special Party Dues and a variety of ways, BOC donated the disaster region a total of more than 130 million Yuan, among of which the personal contributions of employees account for 78.62 million Yuan. The number of donation personnel and donation amount reached a new record of BOC. At the same time, BOC identified "pursuit of excellence" as the core value of the whole bank, reflecting the requirements in five aspects of "good faith, performance, responsibility, innovation, harmony", vigorously built a working atmosphere of "honesty and good faith, fulfill duties, reformation and innovation and human-oriented", and provided a continuous spiritual power for the reform and development of BOC with common values and codes and cohesion of the intelligence and strength of all staffs.
![]() After the Sichuan earthquake happened, BOC established "mobile banking" in the disaster areas. The customers transact businesses in the mobile services car at Mianyang Branch.
![]() BOC donated culture and sports articles to the primary schools in poverty-stricken areas in Henan Province. (For more biz stories, please visit Industries)
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