Bohai Bank must enhance technology and retail banking capabilities to further positive growth
Bohai Bank has displayed stellar growth in previous years by keeping costs and NPLs low. But where will its future growth come from? November 21, 2012 | Baron LaudermilkBohai Bank, a small commercial bank (with around 40 branches and 70 sub-branches) based in Tianjin, China, boasts an exemplary business model many should aspire to – it has managed to keep its non-performing-loans (NPLs) low, while maintaining profits, and targets a conservative and risk-averse customer base. Bohai Bank’s cautious management is one reason why the bank’s profits have grown an astonishing 57.03% in 2011. Many of the bank’s top executives and head of departments have been lured from some of China’s bigger banks. Zhao Shigang, president of Bohai Bank, was poached from Bank of China, where he was former deputy governor, whereas Sun Liguo, vice president of the bank, was formerly of China Construction Bank. According to Zhao, “We were able to acquire the best because of the kind of culture we have at the bank. But of course, we also pay a little more.” In a bid to encourage productivity, Bohai Bank has also partnered with Standard Chartered Bank, which owns 19.9% in Bohai Bank, to enhance its training and development modules. The president of Bohai Bank also has connections in China’s highest levels of government, including the seven-member politburo. He mentioned that recently he had a Monday morning meeting to decide economic and banking opportunities with the Party Congress. Zhao may also be connected with Zhang Gaoli, the CPC Tianjin Committee Secretary and new politburo member who will oversee economic development across China; he is also from Tianjin. Zhao elaborated that Bohai Bank has been able to keep its NPLs low, currently sitting at 0.14% (2011) because of its robust operational risk management systems and software. Indeed, the bank seems to be reaping the dividends after going live in July 2007 with Misys’ Opics Risk Plus, an advanced market risk and portfolio management solution. Besides this, Bohai Bank has also refrained lending to smaller, private businesses, with many of its main clients s... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Core Banking, Mobile Banking, Retail Banking, Technology & OperationsChina,Core Banking,Mobile banking,retail,technology, China,Core Banking,Mobile Banking,Retail Banking,Technology & Operations, Keywords:Bohai Bank, Zhao Shigang, Sun Liguo, Standard Chartered Bank, Misys, Brenda Wong, China Merchants Bank, Shanghai Pudong Bank, Bank Of Tianjin Bohai Bank, Zhao Shigang, Sun Liguo, Standard Chartered Bank, Misys, Brenda Wong, China Merchants Bank, Shanghai Pudong Bank, Bank of Tianjin
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