Inclusive Finance, Harmonious Co-Enrichment
　　　　　　　　　　 　　　　　　　　　-- Developing Harbin Bank

Established in February 1997, Harbin Bank is a new style, national-wide share-holding commercial bank, headed in Harbin. Now the bank has 8 branches, including Tianjin Branch, Dalian Branch, Chengdu Branch, Shuangyashan Branch, Jixi Branch, Hegang Branch, Shenyang Branch, Suihua Branch and Harbin Branch with 144 business outlets and 5 village-town banks, including Hui Shi Village Bank in Huining, Gansu, Rong Xing Village Bank in Bayan, Heilongjiang, Rong Xing Village Bank in Yushu, Jilin, Rong Xing Village Bank in Huairou, Beijing, Rong Xing Villiage Bank in Baoan, Shenzhen. At the end of 2009, its total asset is 84.5 billion Yuan, the deposit balance is 75 billion Yuan, the loan balance is 43 billion Yuan and it has 3579 employees. According to the latest risk management and ratings issued by the China Banking Regulatory Commission (CBRC), our bank meets the grade-two standard and has become one of the national advanced banks.”

Under the leadership of Committees of the Communist Party of China and governments at all levels, and under the support of regulatory and competent authorities at all levels, our bank has been continuously strengthening internal control system, preventing and defusing operational risks, implementing innovation in financial products and management, increasing effective investments, operating steadily and healthily, and developing as per rules, thus our development scale has been enlarging continuously, the asset quality has been increasing continuously, the economic benefits have been rising continuously and the social image has been improving. Our bank has developed from a formal urban credit cooperative into a modern young and vigorous commercial bank which develops the fastest and has strong profitability, good economic benefits, high internal control standard, and complete range of businesses as well as flexible operational system.

Our bank is the first bank that has purchased the urban credit cooperatives within its administrative region and established the county level branches and Institutiones. In 2004, our bank purchased Shuangyashan Urban Credit Cooperative and established the first branch beyond its jurisdiction on the basis of that – Shuangyashan Branch, which has been recorded in the financial development history of China. In 2007, with the approval of the China Banking Regulatory Commission (CBRC), our bank established Dalian Branch, realizing the operation beyond its province. Our bank is one of the first banks which have changed their names and realized operation beyond their regions, taking a lead across China.

Our bank has basically formed the organizational structure of “being located in Heilongjiang, facing northeast China and scattering across China”, and had the scale of a national share-holding commercial bank, providing our bank with a wider development space.

Since 2003, according to Law of the People's Republic of China on Commercial Banks, Company Law of the People's Republic of China, and relevant requirements of regulatory authorities, our bank has established the basic structure of modern enterprise system, and formed the governing structure of legal person by which shareholders meetings, the board of directors, the board of supervisors, and management divide their responsibilities and coordinate their efforts.

While promoting development, enlarging business scale, and realizing the times’ increase of all goals, our bank has been making any effort to conduct basic management construction, so as to make the development base firmer and healthier, getting into the road of legalization, standardization, and scientific development. Our bank has carried out ISO9000 certification, perfected rules and systems, established systematic and complete management rules and operation practices, setting up a scientific management framework.

Our bank has hired international famous consulting companies including Deloitte, Accion, Sun Hung Kai & Co. Ltd to conduct due diligence investigation of accounting, assets valuation, and valuation of introduced strategic investors, improving financial and assets management ability, and realizing the integration into the world and taking the lead among the commercial banks in China.

Our bank has established the principle of “developing the bank by science and technologies”, increased investment in science and technologies, conducted network environment and hardware upgrading, software development, redundancy construction beyond its region, upgraded and improved core business system, developed and upgraded 20 information management systems including credit management, capital marketing, assets management, international business, internet banking, administration office, human resources, and audit management, etc. among which our bank has obtained the own intellectual property rights for micro-credit management system. Our bank has hired international famous consulting companies including Price Waterhouse Coopers and BearingPoint, Inc. to conduct an IT information security assessment and scientific and technological development plan, introduced into scientific and technological talents, strengthened the scientific and technological team, enhancing the scientific and technological support ability.

Our bank has introduced the theory of economic capital and economic added value, and established a economic capital cored restriction mechanism between risks and benefits and put credit risks, operation risks and capital engagement into the scope of performance evaluation. Our bank has established a economic added value cored examination system to examine the operation results of branches by the healthy profits after risk adjustment, and established a restriction mechanism of capital to risks to strengthen risk management, making our bank develop more healthily. With a view to enhance the development of emerging businesses such as branches beyond its jurisdiction, and small amount credits, etc., completing the performance examination system and incentive mechanism, and improving the enthusiasm and creativity of staffs.

Our bank has always been giving priority to risk prevention, strengthening the basic construction of risk management, innovating means and approaches, adopting various kinds of measures to strengthen risk management, continuously improving risk prevention level. Our bank has been strengthening process management, implementing process management all through the credit extension process, designating examination, approval, giving of credit extension, and post-loan management to different departments, and implementing the whole process management according to business operation process. With regard to credit management, our bank has established the credit management mode of “separating examination from credit, examining according to different levels, examining and approving centrally, supervising thoroughly, authorizing differently, checking each other”. Our bank has implemented highly centralized management mode of businesses, and centralized business supervision, business settlement, reconciliation between bank and enterprises, and financial accounting, improving scientific management, professional degree and work efficiency.

Our bank has established a risk prevention network which every staff gets involved in, and implemented the work of "eliminating risks promptly” within internal risk control scope. Our bank has strengthened the construction of audit organization system, implemented the rule that auditors are designated to each branch, establishing and completing audit management system. Our bank has strengthened risk control of business operation, and established 30 opinions on strengthening risk control of business operation subsequently twice, completed risk management system, established risk management committee, risk management department, examination and approval department of credit extension, realizing the separation between application and credit; strengthened credit management, and implemented loan management of five levels, standardizing the process of five-level classification.

Our bank has strengthened loan giving supervision, got loan giving supervised in supervision center, examined strictly credit files, to effectively avoid credit risks and fill the holes arising from not complete formalities; completed the construction of credit business authorization system; implemented grade assessment on the credit business all through the bank, and given different authorization based on assessment results and in combination with risk levels of credit products, marketing goals and customer’s demand characteristics; carried out the system of pursuing responsibilities; established the measures specially for defining credit responsibilities; hired famous accounting firms to conduct a complete regulation and assessment on the internal control system of our bank.

Our bank has innovated audit method and implemented audit examination of “whole replacement”; strengthened safety prevention from inside to outside, kept stress on prevention, got the whole staffs of the bank involved in, taken prevention measures from persons, objects and technologies, created a good atmosphere that every staff pays attention on safety and prevents risks at any time, completely improved security prevention level and ability. As a result, our bank has realized five safe years subsequently, and appraised by regulatory authorities and been popularized in the sector.

Since 2004, our bank has implemented small and medium strategies and shifted the capital focus onto developing the credit business for small and medium sized enterprises, solving the financing problems of small and medium sized enterprises.

Small loans of our bank is classified into four main parts, namely, loans for small enterprises, loans for farmers, loans for micro-enterprises and loans for personal consumptions. At the end of 2009, the balance of small loan of our bank was 18.933 billion Yuan, accounting for 60% of the total credit asset in our bank, the daily balance of loan has reached 15.261 billon RMB, accounting for 55% of the daily average of the total credit asset, among which the profits accounting for 60% of the total profit of credit asset, the non-performing is less than 1%.In the past several years, there has been 961 loans with 2.9 billion RMB for small enterprise loan product, the loan for farmers has accumulated to 18.93billion Yuan for 696000 farmers, the loan for micro-enterprises has accumulated to 2.7 billion Yuan for 16000 micro-enterprises, and the loan for personal consumption has accumulated to 5.327 billion Yuan for 100000 persons. The business staffs of small amount credit have been up to 693, accounting for 70% of the credit team of our bank. At the present time, our bank has established small amount credit system of covering urban and rural regions, product series, professional service, scaled operation, branded image and international technologies, creating a small amount credit development pattern which is centered in Harbin, and extended to Heilongjiang Province, Northeast China and the whole country. According to the statistics of Asian Development Bank, the small amount credit scale of our bank has ranked the first ten tops, and our bank has paved a unique small amount credit development road.

When operating small amount credits, our bank has been strengthening the communication and cooperation with PlaNet Finance France, Accion International America, Bangladesh Grameen Bank and other international advanced small mount organizations, enhanced the small amount credit business onto international development platform, improving significantly the small credit level of our state.

The small amount credit of our bank has drawn the attention of various circles. The News program of CCTV broadcasted the experience of our bank in operating small amount credit business three times, and Xinhua Internal Reference and many other media reported the working conditions of small amount credit. Our bank has been called “Chinese Yunus” figuratively. Our bank has been invited to attend “Micro International Investment Forum New York”, “International Small Amount Credit Forum Geneva”, and “International Forum of Solving Financing Difficulties of Small and Medium Enterprises” hosted by CCTV, and deliver the keynote addresses.

From 2006 to 2007, our bank was assessed to be the advanced unit for its loan work for small enterprises among the banks and financial Institutions across China, Since 2006, our clients and loan officers have won prized in international selection awards, such as Citi-Microentrepreneurship Awards and Planet Finance Global Excellent Micro-Entrepreneur Award. “Smart winner” series of small amount credit products had the honor to win the top ten special product award of the first Chinese local finance.

Our bank has been making efforts to develop market, deepening marketing, conducting continuous business innovation, and has made prominent achivements. Our bank established Harbangde Bond Trading Office, which takes a lead in Chinese bond trading market, and the trading volume ranks the 12th among more than 5000 financial Institutions across China, and ranks the second among urban commercial banks. Hardebang Bond Trading Office is the first grade dealer in three provinces of northeast China, and it is the quoter of shibor, and the bank which has the complete qualifications including bonds sales, settlement and other businesses of Ministry of Finance P.R.C, National Development Bank, Agricultural Development Bank.

Our bank has established the first negotiable instrument discounting market and the discounting volume ranks the first among the financial Institutions in Harbin city.

Our bank is the first one to operate international businesses in the three provinces in northeast China and the first urban commercial bank which has obtained the foreign exchange license. In July 2009, our bank established personal foreign exchange center, therefore, our bank is the first one opening deposit business for rouble in China. The ruble exchange volume has been ranking the first between 2008 and 2009.

Our bank has been making efforts to develop personal financing businesses, and has created “Lilac Financing” brand, which obtained good reputation from our clients, and our bank ranked the 25th among the complete ranking of “The Competitiveness of Financing Products from Domestic and International Banks” published by the domestic authoritative paper Financial Times in 2008, and ranked the 5th among urban commercial banks. In the assessment of “2008 China Financial Marketing Award” hosted by Chinese Bankers, “Lilac Financing” products won the “Top Ten Financial Products Award” of 2008 China Financial Marketing Award.

Our bank has been making efforts to acquire big projects of governments, and successfully obtained the projects such as collective payment of municipal finance and state treasury, social security project, golden tax project, urban planning metro card , etc., and the market share of each business has been rising continuously and plays increasingly prominent roles in the social and economic development.

Our bank has been adhering to the main stream of construction of “four one-batches and two talents databases”, conducting the implementation of “four plans” well, namely, “horizon plan”, “successors plan”, “college training plan”, and “professional managers training plan” to adapt to the future development of our bank, created a staff team of high quality. The overall quality takes the top places among urban commercial banks across China. Specially, our bank has trained a team of small amount credit of our bank through the cooperation with domestic and foreign small amount credit organizations.

At the present time, our bank has initially established a small amount credit team of 400 staffs around, trained 5 developing and research experts, 20 management experts, 19 trainers, 5 bilingual international communication talents, set up the framework of small amount credit management team of our bank, formed small amount credit expert team for agricultural credit and micro-credit. Our bank has planned to establish a small amount credit team of 800 staffs around in the following 3 years, among which agricultural credit team will exceed 500 staffs, micro-credit backbone staffs will exceed 200, small amount credit staffs will exceed 50, and train 100 international class small amount credit experts, so as to create our bank into a the cradle of domestic small amount credit talents.

Our bank has been giving stress on the construction of cooperate culture to create a unique cooperate culture, standardized cooperate image identification system, cooperate philosophy system, cooperate behavior rules system, and established the cooperate culture system based on the philosophy of “Inclusive Financing, Harmony and Common Wealth”, formed risk culture, human resources employment culture, credit extension culture, marketing culture, small amount credit culture, outlets construction culture with characteristics of our bank, created a complete brand popularizing system.

As a local bank, hometown bank, urban bank which has grown on the black land, when making efforts to get good economic benefits, our bank has never ignored the social responsibilities of an enterprise, and has always supported the local economic and social development and taken it as our obligatory responsibilities, moistening each land which needs capital with financial rains and dews. In 2006, our bank made a contribution of 2 million Yuan to sponsor the 29th China Harbin’s Summer Concert.

Our bank made a contribution of more than 1 million Yuan to establish Harbin Numismatic Museum, enriching the financial culture connotation of our bank; made a contribution of 0.6 million Yuan to host the first “Finding Harbin” national exhibition of photography; made a contribution of more than 0.2 million Yuan to establish Anti-Japanese Hope Elementary School to promulgate anti-Japanese revolutionary spirits; made a contribution of 0.3 million Yuan to establish Hongyi Education Fund to support the education cause in former revolutionary region; made a contribution of more than 6 million Yuan to support city metro card project of our city, contributing to the construction of digital Harbin; made a donation of 1.59 million to Sichuan Wenchuan earthquake affected area in May 2008 to express the love of our bank to the people in the earthquake affected areas.

Our bank has been assessed to be the excellent unit award in the 29th, 30th, 31st model workers meetings subsequently, and the model unit award in the 32nd model workers meeting. Three of our staffs have been assessed to be the national model workers and won the national “May Day” labor medals.

Board chairman Comrade Guo zhiwen won the 2005 annual character award of national commercial banks. In 2006, our bank was assessed to be the 30 top national competitive financial Institutions.

In 2005, our bank introduced domestic famous services and consulting Institutions to conduct an evaluation on the service conditions of our bank, and set up the services management framework of our bank, established the four-level service quality management and supervision system including service director, supervision and inspection center, supervision and inspection representatives and customer complaint representatives; established the high quality services leadership group to be specially responsible for services management; established service criterion and prepared 1500 service cases; established business outlet civilized and normative service management measures, and unified the service manners and civilized words; carried out the assessment activity of civilized model unit and top ten service stars to choose 38 model units among 130 business outlets across our jurisdiction; carried out post practicing activity to improve the service skills of our staffs.

Our bank has optimized the outlet arrangement, improved the outlet environment. Our bank has invested more than 80 million Yuan to conduct a standardized decoration and restructure of outlets, so as to change the outmoded status of the former urban credit cooperative. Two business outlets of our bank have been assessed to be “national civilized and normative service model unit”.

Harbin Bank will adhere to the philosophy of “Inclusive Finance, Harmonious Co-Enrichment”, and stick to the development orientation of “being located in Heilongjiang, supporting small and medium enterprises, serving northeast China, facing the whole country”, inherit and continue the historical culture of Harbin as international financial city, to make efforts to create a first class in China and globally famous small amount credit bank and make more contributions to the social development.