China Minsheng Bank creates scale and diversifies risks to drive profitability
Dong Wenbiao, chairman of China Minsheng Bank, discusses the reorganisation of the bank’s main business lines and redefines the rules of the game for MSE businesses. April 10, 2013 | Foo Boon PingChina Minsheng Bank, established in 1996, was one of China’s first privately-owned joint-stock commercial banks. For most of the first ten years of its existence, it did not have a clear strategy or customer focus. However, all that changed in 2006 when the bank embarked on a major reorganisation and transformed its main lines of business into strategic business units, adopting a management and organisational set-up closer to that of international banks. Its corporate reform effort has been vindicated by the reputation that the bank has established for itself in single-handedly rewriting the rules of engagement for small business financial supply chain value creation. The bank’s chairman, Dong Wenbiao, never doubted the direction that he set for the bank. “We just accomplished our five-year development plan. In the micro and small enterprise (MSE) business, we are the largest financial service provider. And we are becoming one of the most respected banks not only in China but Asia,” he told The Asian Banker. “The principle for organising our business based on a strategic business units (SBU) structure is four-fold. The first is to make each business line an independent business unit, the second is to make it professional, the third is to establish a financial stewardship team to provide advice and support for our customers and the fourth is the financial division of all the services and products, he elaborated. Today, China Minsheng Bank has become one of the country’s leading commercial banks, with a reputation for innovation and professionalism following the clear direction that Dong provided. “We did not want to be a small bank among large banks. But we also did not want to be perceived as the largest of the small banks. We did not want to be an undifferentiated middle-of-the-road bank in the midst of the many banks that exist in China, so we had to be different and we needed to set our own direction,” he said. ...Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Cash, Treasury & Trade, Trade Finance, Transaction Bankingcash,Trade Finance,Transaction Banking, Cash, Treasury & Trade,Trade Finance,Transaction Banking, Keywords:China Minsheng Bank, Dong Wenbiao, MSE, NSOE, ACFIC China Minsheng Bank, Dong Wenbiao, MSE, NSOE, ACFIC
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