Bank of China is a major government bank with strong forex operations. It proposes to strengthen its operations in insurance, investment banking and forex business to become a leading international bank. It has been strengthening risk management and corporate governance functions, besides computerization level.
For Bank of China, 2001 signifies radical changes. The entire bank was focused on the development of its core activities, as a matter of priority. During this year, the bank has continued to build a robust decision-making system. It has also fine-tuned risk management through a due diligence process and a system of follow-up evaluation. Asset Disposition Review Committee and Procurement Review Committee have also been established. The bank has also followed prudent accounting principles with a view to improve transparency. It also adopted the five-tier approach in loan classification with a view to provide transparency and clarity about asset quality. It is during 2001, that the bank, in compliance with the prudent accounting principles has undertaken massive write off of bad debts, besides providing substantially, for substandard and doubtful debts. It has even reversed uncollected overdue interest. Three years of restructuring efforts have resulted in better standards of risk management and transparency.
In the credit area for 2002, it has added RMB 103 bn by May 2002 to the retail-lending sector, to take the total exposure to over RMB 250 bn. The areas of retail lending include consumer loans, auto loans, travel and personal loans. |
