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Supplement: Bank of China helping students pursue studies

(chinadaily.com.cn)
Updated: 2009-03-05 11:10

Since the commencement of State educational loans in 1999, Bank of China (BOC) has provided 11.671 billion yuan ($1.71 billion) to 920,000 needy students, paving the way towards a bright, educational future. After years of experience, the BOC educational loan service has gradually embarked on a favorable development path, featuring excellent products, a convenient application procedure and extensive service scope.

BOC gives utmost attention to student loans

In August 2004, BOC won the State educational loan bidding organized by the State Educational Loan Administrative Center of the Ministry of Education for schools affiliated with State ministries and commissions. It also became the exclusive managing bank, providing State educational loans for qualified schools.

State educational loans are different than usual loans given to businesses, as these loans are strategically given to promote the sustainable, harmonious, and healthy development of educational equality undertaking. Therefore, BOC pays much attention to providing educational loans for students in poverty in high schools, and regards this work as part of its corporate social responsibility. BOC has established a three-grade working system of the state educational loan business through the integration of resources, while different departments cooperate to carry out and assist the distribution of educational loans.

BOC dispatches special branches and sub-branches to each high school to be responsible for the transaction of educational loans, and selects a full-time client manager to provide one-on-one service. Recognizing that different conditions and problems are known to occur at the beginning and during the transaction of educational loans, BOC holds teleconference and State educational loan symposia time after time to negotiate policies for State educational loan businesses and to establish practical measures. This provides reliable organizational guarantees for the development of State educational loan businesses.

Based on company practices, BOC has established normal operational flows for the implementation of State educational loans and has created a complete service system for use before, during, and after providing the loan. At the same time, BOC has also invested great manpower and resources towards the construction of special operation networks serving high schools. Up until now, business networks have spread and self-service equipment have been installed in campuses of all 118 high schools affiliated with the central ministries, facilitating and satisfying high school student's demands for financial services.

In addition, BOC has developed a State educational loan application system, realizing an automatic business disposal while providing technical assistance and support for the transaction of the educational loan business. At present, the BOC State educational loan system can automatically identify State educational loans in different regions (such as schools affiliated to central ministries and local schools) and different natures (such as State educational loans in new and old policies), and can flexibly arrange appropriate post-loan management methods according to the characteristics of different loans.

Providing high-quality services for students

BOC arranges its work in advance every year according to the State educational loan quota assigned by the Ministry of Education for each semester. Insisting on its principle of "helping needy students pursue their studies," BOC actively helps high schools organize loan knowledge generalization meetings, explain State policies, business flow and personal credit and strengthen comprehension of student debtors on State educational loans and credit education. In addition, BOC has established a business enquiry desk on campuses to provide service, accept businesses, and answer any questions students may have.

Educational loans possess the following characteristics: each has a small amount, the amount of the involved businesses is high, and the business operation is well concentrated. Particularly during the early period of a business transaction, a manual processing mode is mainly adopted. Therefore, local branches of BOC often work overtime and dispatch all manpower and resources to provide effective services for the implementation of a new loan, increase of an old loan, and transaction of a rollover loan, in order to guarantee a timely and correct loan distribution.

BOC staff have abundant professional experience and strict working flows, which affect all teachers and students. Beijing Jiaotong University wrote in a letter of appreciation to BOC: "we can see the fruit of the BOC staffs' relentless efforts in these outstanding numbers and words appraising your performances, and we can feel your kindness, trust, and tolerance towards contemporary university students."

Financial knowledge through credit education

A friend in need is a friend indeed. BOC provides financial assistance in many ways to needy students. It will directly affect the operating risk and asset quality of State educational loans whether or not those student debtors can repay the loan in time after their studies. BOC actively cooperates with high schools to strengthen propaganda and education, focusing on the motto, "If I give you credit, you give me a promise." BOC executes an enlightening spirit throughout the distribution of educational loans and has created an honest, faithful and responsible example for favorable philosophy and ethics. Many student debtors have a profound understanding that a credit record is the second ID card of each citizen, and a favorable credit record can add a personal credit grade in banks, plus aids personal employment and future development.

In order to strengthen the risk management of State educational loans, BOC has established risk review standards and risk control procedures for before, during, and after providing loans. BOC sends registered letters to parents before graduation of student debtors and invites parents to supervise and urge students to pay their credit dues on time. In addition, BOC has researched and developed a student credit file system jointly with high schools, realizing sufficient information sharing can effectively reduce loan risks caused by insufficient or incorrect information.

Under the precondition of successful and effective execution of the State educational loan business, BOC actively explores cooperative fields between the bank and school. Insisting on its operational tenet of "focusing on customers' demands," BOC has comprehensively strengthened its financial services for 118 ordinary high schools affiliated with central ministries. With the support and cooperation of the Ministry of Education and cooperative schools, BOC has designed a "one-basket" professional financial service scheme for each school, providing general financial services, including deposit, agency, and financing. Favorable services of BOC have won extensive recognition and praises from educational departments, cooperative schools, students and people of all walks of life.

Education should be of fundamental importance to the fulfillment of our great long-term program. Students will create the future, possibly becoming a part of the social elite. As the exclusive managing bank of State educational loans for ministry-affiliated high schools BOC will continue to complete its product functions and service flow, strengthen cooperation between bank and school, explore new cooperative fields, provide comprehensive financial services, support educational undertakings, and assume relevant corporate obligations.