CBA stake in China bank rubber stamped
(23 November 2004 – China) The China Banking Regulatory Commission has given Commonwealth Bank the green light to take an 11 percent stake in Jinan City Commercial Bank (JNCCB).
The Chinese bank is one of the tenth largest commercial banks in China by assets and is the leading commercial bank in Shandong Province, which has almost 90 million people.
CBA will be represented on the board and also be granted options over additional equity up to 20 percent – the maximum stake foreign organisations are allowed.
CBA said it would provide JNCCB with technical assistance in key areas through a structured capability transfer program, enabling the bank to be more competitive.
JNCCB said it planned to benefit from CBA’s expertise in IT, credit cards, credit management, risk management, sales and marketing, financial management, and fund management.
JNCCB has total assets of some A$4 billion and five percent of Jinan’s savings and loans markets.
CBA will be represented on the board and also be granted options over additional equity up to 20 percent – the maximum stake foreign organisations are allowed.
CBA said it would provide JNCCB with technical assistance in key areas through a structured capability transfer program, enabling the bank to be more competitive.
JNCCB said it planned to benefit from CBA’s expertise in IT, credit cards, credit management, risk management, sales and marketing, financial management, and fund management.
JNCCB has total assets of some A$4 billion and five percent of Jinan’s savings and loans markets.
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