Summary of Proposed Investment
Project Number
10817
Company Name
Bank of Nanjing Co., Ltd.
Date SPI Disclosed
Apr 20, 2001
Country
China
Industry
Financial Markets
Projected Board Date
May 31, 2001
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jun 7, 2001
Signed : Nov 28, 2001
Invested : Feb 27, 2002
Project Description
NCCB was established in 1996 through a merger of 40 existing urban credit cooperatives in Nanjing which were owned primarily by private and collective enterprises and individual citizens. It is a fully-licensed regional commercial bank providing a broad range of banking and related financial services. The mandate of NCCB is to support the rapidly-growing small and medium-sized enterprises (SMEs) in Nanjing, most of which are privately and collectively owned. Therefore, SMEs currently account for about 90% of NCCB''s total loan portfolio.
The proposed project is intended to strengthen NCCB''s capital base and assist the bank in its efforts to improve corporate governance, adopt international banking best practices, and become one of the best-managed commercial banks in China for emulation by other Chinese banks. IFC is already providing a technical assistance project to NCCB, which will be continued after IFC becomes a shareholder. The project would also help extend IFC''s reach to assist the rapidly-growing SMEs and private enterprises in China.
At the moment, the Chinese domestic banks are still not open to foreign investment, so the proposed IFC investment in NCCB is subject to approval by the Chinese government. In this context, the proposed project will enable IFC to play an important role to promote the liberalization and opening-up of China''s banking sector for foreign investment in the future.
The proposed project is intended to strengthen NCCB''s capital base and assist the bank in its efforts to improve corporate governance, adopt international banking best practices, and become one of the best-managed commercial banks in China for emulation by other Chinese banks. IFC is already providing a technical assistance project to NCCB, which will be continued after IFC becomes a shareholder. The project would also help extend IFC''s reach to assist the rapidly-growing SMEs and private enterprises in China.
At the moment, the Chinese domestic banks are still not open to foreign investment, so the proposed IFC investment in NCCB is subject to approval by the Chinese government. In this context, the proposed project will enable IFC to play an important role to promote the liberalization and opening-up of China''s banking sector for foreign investment in the future.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Jiansheng Wang, Senior Investment Officer, IFC
email address: jwang@ifc.org
email address: jwang@ifc.org