BANK OF COMMUNICATIONS CO., LTD. Bank of Communications Co., Ltd.
2020 CSR Report
March 26, 2021
About This Report
Reporting Scope
This report includes information on Bank of Communications Co., Ltd. (BoCom) and its domestic and international branches, subsidiaries and directly operating companies.
Information disclosure, if not specified, is applicable to the whole bank.
The report covers the period from January 1 to December 31, 2020. BoCom publishes its CSR report annually.
The 2020 CSR Report was published on March 26, 2021.
References
This report is prepared in accordance with the Opinions on Strengthening the Social Responsibility of Banking Financial Institutions issued by China Banking Regulatory Commission, Guidelines on the Corporate Social Responsibility of Banking Institutions of China issued by the China Banking Association, Notice on Promoting the Social Responsibility of Listed Companies and Publishing Environmental Information Disclosure Guidelines for Companies Listed on the Shanghai Stock Exchange issued by Shanghai Stock Exchange, the Environmental, Social and Governance Reporting Guide issued by Hong Kong Exchanges and Clearing Limited (HKEx) and the GRI Sustainability
Reporting Standards (GRI Standards) issued by Global Sustainability Standards Board
(GSSB).
Reporting Process
Based on its CSR practices, BoCom prepares this report in seven stages covering project approval, information collection, drafts and revisions, review by senior management, Social Responsibility (ESG) and Consumer Protection Committee and the
Board of Directors, as well as printing and publishing. BoCom communicates frequently with its stakeholders for feedback on the structure and content of the report.
Assurance
The PricewaterhouseCoopers Zhong Tian CPAs Limited Company (special general partner) is entrusted to provide a third-party assessment of the report, in line with the
International Standard on Assurance Engagements (ISAE) 3000: Other Than Audits orReviews of Historical Financial Information, and an independent statement of assurance.
Data Sources
Financial data from BoCom Financial Statements 2020 have been independently audited by PricewaterhouseCoopers Zhong Tian CPAs Limited Company (special general partner). Other data from previous years is included in this report.
All currency amounts are reported in RMB, unless otherwise stated.
Report Availability
This report is available in print and electronic formats. BoCom uses environmentally friendly paper for all printed copies, and electronic copies are viewable at
www.bankcomm.com.
Both Chinese and English versions are available. If discrepancies exist between the two versions, the Chinese version shall prevail.
References
Bank of Communications Co., Ltd. is also referred to as "BoCom" or "the Bank" or "we" in this report.
Editorial Board
Director: Ren Deqi
Deputy Director: Liu Jun
Editor in Chief: Shen Mingzhi
Executive Editor-in-Chief: Shuai Shi
Executive Associate Editors-in-Chief: Chen Xing, Mei Ying
Editors: Liang Yu, Xu Zhengrong, Liu Shiliang
Contact Information
Offices (Corporate Culture Department), Bank of Communications Co., Ltd.
Address: 188 Yinchengzhong Rd., Shanghai, China
Postcode: 200120
Tel.: 8621-58781234-3761
Email:meiy@bankcomm.com
Contents
Message from Senior Management...........................................................................................1
1. About BoCom.......................................................................................................................5
1.1 Company Profile.........................................................................................................5
1.2 Key Performance.........................................................................................................6
1.3 Corporate Governance................................................................................................9
2. CSR Management...............................................................................................................17
2.1 CSR Governance.......................................................................................................17
2.2 Stakeholder Communication and Engagement.........................................................21
2.3 Honors.......................................................................................................................24
3. Feature 1: Rationally Respond to and Assist in the Fight against the Pandemic through
Finance............................................................................................................................................26
3.1 Overcoming Difficulties and Providing a Strong Financial Back.............................26
3.2 Protecting Employees' Safety...................................................................................31
4. Feature 2: Upholding its Mission in the Fight Against Poverty..........................................35
4.1 Dual-engine: Assisting in National Strategies...........................................................36
4.2 Dual-wheel: Working together to Break New Ground..............................................41
4.3 Dual-light: Seeking Development Together..............................................................43
4.4 Dual-track: Working for a Better Life Together........................................................49
4.5 Dual-whistle: Using Publicity to Support Poverty Alleviation.................................51
4.6 Highlights of Poverty Alleviation Initiatives at Provincial Branches and Subsidiaries
in 2020....................................................................................................................................53
5. Driving Economic Development by Adapting to Changes of the Times............................57
5.1 Responding to National Strategies............................................................................57
5.2 Supporting the Real Economy...................................................................................68
5.3 Improving People's Livelihoods...............................................................................72
6. Accelerating the Development of Inclusive Finance in the Tide of Digital Transformation
........................................................................................................................................................75
6.1 Supporting MSEs......................................................................................................75
6.2 Paying Close Attention to the Development of Agriculture, Rural Areas and Farmers
................................................................................................................................................84
6.3 Improving Financial Services...................................................................................86
7. Facilitating Green Development.........................................................................................94
7.1 Addressing Climate Change......................................................................................94
7.2 Green Finance ........................................................................................................... 95
7.3 Green Services ........................................................................................................ 102
7.4 Green Operations .................................................................................................... 104
8. Growing Together with Employees ................................................................................... 111
8.1 Joint Efforts for Diversity ....................................................................................... 111
8.2 Empowering Career Development .......................................................................... 115
8.3 Building a Happy Home .......................................................................................... 120
9. Building a Happy Community Together ........................................................................... 123
9.1 Building a Charity Brand ........................................................................................ 123
9.2 Giving Back to Communities .................................................................................. 126
Outlook for 2021 ................................................................................................................... 129
Independent Statement of Assurance .................................................................................... 131
Notes to Key Performance ................................................................................................. 133
ESG Index ............................................................................................................................. 136
GRI Index .............................................................................................................................. 145
Feedback Form ...................................................................................................................... 164
Message from Senior Management
2020 was an extraordinary year. Facing the severe impact brought by COVID-19, as well as a grim and complex business environment, BoCom upheld the spirit of perseverance, responsibility, innovation and pursuit of excellence. While coordinating COVID response with our business development, we have adhered to our founding mission of serving the real economy, made financial services more inclusive and adaptive, and deepened the transformation of Fintech. Working together to overcome difficulties with high morale and great spirit fighting against the pandemic, we have achieved hard-won performance.
In 2020, we maintained and consolidated a quality development while ensuring stability, and continued to strive toward our strategic vision of becoming a world-class bank with featured wealth management and global competitiveness. In this year, our net profits registered RMB78.274 billion, an increase of 1.28% year on year; return on average assets reached 0.77% and capital adequacy ratio 15.25%; Impaired loan ratio decreased to 1.67%, with social contribution per share sitting at
RMB4.78. For twelve consecutive years, we have been listed among the Fortune Global 500 companies, ranking 162nd in terms of operating income. We have also been rated 11th in Tier 1 capital by The Banker for four years in a row among the world's top 1,000 banks.
Accomplishing Poverty Alleviation Tasks
The beginning of its work is simple, and its completion will be great. As 2020 was the final year of the poverty alleviation campaign, efforts to complete the mission was strenuous, and the
COVID-19 pandemic only made it ever more demanding and difficult. Nonetheless, employees across BoCom gathered forces with people in poverty to overcome the difficulties, and a strong powerful force was formed to secure a decisive victory in the fight against poverty. In February 2020, all three designated poverty-stricken counties, Tianzhu County in Gansu Province, Litang
County in Sichuan Province, and Hunyuan County in Shanxi Province, that BoCom was responsible for, got rid of poverty. We were able to complete this important task entrusted by the Party and the people.
As a large state-owned commercial bank, we have always taken poverty alleviation as our top political task and the "No.1 Project" in fulfilling social responsibilities. We've promoted poverty alleviation through Party building, and top leaders of Party committees at all levels were in front of the command. We established the "Poverty Alleviation and Corporate Culture Office" at the Head
Office to coordinate relevant resources and 44 domestic branches in an effort to win the battleagainst poverty by targeting areas of weakness. In 2020, we went beyond all six of our major targets specified in the statement of responsibility of central units for targeted poverty alleviation in advance, with poverty alleviation donations maintaining a positive growth for five years in a row. In addition,
BoCom has been awarded "Good" for three consecutive years in the targeted poverty alleviation assessment by the State Council Leading Group Office of Poverty Alleviation and Development, and we were also commended by the Party Central Committee and State Council at the National
Poverty Alleviation Summary and Commendation Conference. Our efforts and achievements in poverty alleviation were widely recognized by society.
Continuing to Serve the Real Economy
Only the toughest grass can stand in strong winds. In 2020, BoCom implemented the requirements and tasks of ensuring stability on six fronts and security in six areas, making every effort to ensure the stable development of enterprises and assist micro- to small businesses. We unswervingly served national strategies, met the needs concerning people's livelihood in a flexible and appropriate way, and focused on defusing major financial risks to contribute to the formation of a new development pattern in finance.
By fully leveraging our advantages as an international bank, we have provided convenient financial services to enterprises involved in the "going global" and "welcoming in" strategies of the
Belt and Road Initiative. The building of a "leading bank in the Yangtze River Delta" is a good opportunity to highlight BoCom's Shanghai base and its strength in inclusive finance. With this opportunity, we have focused on creating a model of integrated characteristic finance in the Yangtze
River Delta, thereby meeting the extensive financial demands for a better life of the people. This is also expected to be replicated in regions with major development strategies in place, such as the
Beijing-Tianjin-Hebei Region, Xiongan New Area, the Yangtze River Economic Belt and the
Guangdong-Hong Kong-Macao Greater Bay Area. In 2020, our balance of customer loans reached
RMB5.85 trillion, up by 10.26%.
Improving Efficiency and Consolidating Development Foundation through Technology
In this fast changing world, we have kept our pace with the tide of digitization. In 2020, we continued to advance digital transformation, refined the organizational structure of Fintech, increased resource input in Fintech, and picked up the speed to build a technology talent team. Being user- and demand-oriented, we integrated technology into the whole business chain to build a new digital BoCom.
During the Reporting Period, we actively joined Shanghai's development of "two networks"
and became the first to launch series projects that can better benefit the people, such as "One-stop
Service for Medical Payment", "One-stop Financing Service for Small and Micro Enterprises", and
"One-stop Mortgage Registration Service". By bringing technologies from the labs to society, we truly served the people and strengthened the "BoCom E-Services" brand. The ranking of our mobile banking app in user experience evaluated by Sina went from eighth to third. We have transformed our technology strength into business strength, increased support for micro and small enterprises along the industrial chain, and optimized characteristic industrial chain products such as "Online
Mortgage Loan" and "Shui Rong Tong". Our balance of loans to inclusive micro and small enterprises grew by 59.04%.
Sharing Fruits with All
Spending a century to build a foundation for the future. Ecological conservation is a fundamental strategy concerning the sustainable development of China. BoCom has vigorously practiced the green development philosophy, guided financial resources to support green, low-carbon economy, and protected clear waters as well as green mountains with financial power. We have also helped employees achieve growth and gave back to communities, laying a solid foundation for the sustainable development of century-old BoCom.
In 2020, we actively responded to the "30-60" target (achieve CO2 emissions peak before 2030 and carbon neutrality before 2060) proposed by General Secretary Xi Jinping. We defined the leadership responsibilities of the Board of Directors in ESG (Environmental, Social and
Governance), enhanced environmental risk awareness, and actively addressed climate change. Our balance of outstanding green loans recorded RMB387.28 billion. Talents are important assets to
BoCom. We continued to advance the young cadre training program "Hundreds-Thousands-Ten
Thousands of Talents Program" as well as 10,000 Fintech Talents Program, strengthened democratic development at the primary level, and launched the "Jiaozi Platform". The aim was to promote joint discussion and joint development with employees and achieve common prosperity. During the
Reporting Period, the "BLUE" charity brand saw greater achievements as we held public benefit activities in student aid, special needs education, and care for elders and children, and actively shared development results with the people, winning widespread praise.
We went through hardships as grueling as "storming an iron-wall pass". In 2021, standing at a new starting point with great changes, we will adhere to the general principle of seeking progresswhile ensuring stability. We will adopt promoting high-quality development as our main theme, while reform and innovation will serve as our fundamental drive. We will conscientiously implement the new development philosophy, serve the new development pattern, and achieve a good start of the 14th Five-year Plan period with persistence and a noble mission. We will strive to achieve excellent performance to celebrate the 100th anniversary of the founding of the CPC, and make unremitting endeavor to embark on a new journey towards the Second Centenary Goal of fully building a modern socialist country.
Ren Deqi, Chairman of Bank of Communications
Liu Jun, President of Bank of Communications
March 26, 2021
1. About BoCom
1.1 Company Profile
Founded in 1908, BoCom is one of the note-issuing banks with the longest history in in modern China. After restructuring, BoCom officially reopened on April 1, 1987, becoming the first state-owned joint-stock commercial bank in China, with its Head Office located in Shanghai. The Bank was listed on the Hong Kong Stock Exchange in June 2005 and on the Shanghai Stock Exchange in May 2007. In 2015, the State Council approved the
Deepening Reform Plan of Bank of Communications. In 2020, the Bank deepened reforms
in the integration of Party building and corporate governance, the development of distinctive advantages in line with national strategies, and the improvement of structural functions and institutional mechanisms, Fintech, credit at risk and anti-money laundering, institution management and incentives and restrictions, etc. This has helped the Bank to unleash the benefits of reform and stimulate the momentum of transformation.
BoCom provides customers with corporate banking, personal banking, interbank and financial market businesses. Corporate banking businesses provide various financial products and services to enterprises and government agencies, such as deposits and loans, supply chain finance, cash management, international settlement and trade finance, investment banking, asset custody, wealth management and all kinds of intermediary businesses. Personal banking businesses include services such as deposits and loans, wealth management, bank cards, private banking and all kinds of intermediary businesses for individual customers. Inter-bank and financial market businesses include cooperation with customers in the markets of interest rates, exchange rates, commodities, providing comprehensive services such as investment and financing, transactions, agency, settlement and liquidation. In addition, the Group is also involved in businesses such as fund, trust, financial leasing, insurance, overseas securities, debt-to-equity conversion and asset management through its wholly-owned or holding subsidiaries. During the Reporting Period, there were no major changes in the Group's operating mode, primary businesses and key performance drivers.
1.2 Key Performance
2018 | 2019 | 2020 | ||
Economic | Total assets (RMB billion) | 9,531.171 | 9,905.600 | 10,697.61 6 |
Total loans (RMB billion) | 4,854.228 | 5,304.275 | 5,848.424 | |
Net profits (RMB billion) | 73.630 | 77.281 | 78.274 | |
Taxes (RMB billion) | 31.655 | 30.025 | 32.894 | |
Dividend distribution (RMB billion) | N/A | 23.393 | 23.541 | |
Dividend per share (RMB) | N/A | 0.315 | 0.317 | |
Return on average assets | 0.80% | 0.80% | 0.77% | |
Return on average equity | 11.36% | 11.20% | 10.35% | |
Impaired loan ratio | 1.49% | 1.47% | 1.67% | |
Provision coverage | 173.13% | 171.77% | 143.87% | |
Capital adequacy | 14.37% | 14.83% | 15.25% | |
Tier-1 capital adequacy | 12.21% | 12.85% | 12.88% | |
Core Tier-1 capital adequacy | 11.16% | 11.22% | 10.87% | |
Total assets of branches outside Chinese mainland (RMB billion) | 1,069.186 | 1,164.018 | 1,240.992 | |
Total profits from branches outside Chinese mainland (RMB billion) | 5.507 | 6.363 | 6.109 | |
Total assets of 8 controlled non-bank subsidiaries (RMB billion) | 322.208 | 389.718 | 483.712 | |
Total profits of 8 controlled non-bank subsidiaries (RMB billion) | 4.319 | 5.379 | 8.024 | |
Outstanding loans, central and | 1,327.909 | 1,518.200 | 1,761.000 |
western China (RMB billion) | ||||
Outstanding loans, micro-, small-and mid-sized enterprises (RMB billion) | 1,416.774 | 1,564.401 | 1,842.536 | |
Outstanding loans, agro-related (RMB billion) | 581.147 | 607.782 | 631.313 | |
Low-income housing loans (RMB billion) | 73.763 | 87.555 | 86.800 | |
Outstanding science, education, culture, and health loans (RMB billion) | 89.436 | 96.875 | 112.961 | |
Outstanding personal loans (RMB billion) | 1,635.627 | 1,754.765 | 1,980.882 | |
Bank-wide number of major innovation projects | N/A | 8 | 9 | |
Share of successful transactions via UnionPay interbank system | 99.99% | 100.00% | 99.99% | |
Number of outlets in the Chinese mainland | 3,241 | 3,079 | 2,929 | |
Environme ntal | Share of green loan customers | 99.61% | 99.53% | 99.34% |
Share of outstanding green loans | 99.79% | 99.76% | 99.63% | |
Share of loans to heavily polluting, energy-intensive, and overcapacity industries | 3.18% | 3.10% | 2.60% | |
Outstanding loans in support of energy conservation and emissions reduction (RMB billion) | 283.054 | 328.352 | 387.280 | |
E-banking business share | 96.59% | 97.67% | 98.04% | |
Head Office water use (tons) | 333,300 | 307,000 | 276,200 | |
Head Office electricity use (MWh) | 99,646.7 | 96,710.6 | 102,395.7 | |
Head Office gas use (m3) | 1,232,500 | 1,573,200 | 1,182,600 | |
Head Office paper use (tons) | 40.95 | 38.36 | 32.62 | |
Head Office carbon emissions (tons of CO2e) | 81,184.27 | 79,606.73 | 83,242.71 | |
Head Office energy consumption equivalent to standard coal (tons) | / | / | 31,027 | |
Bank-wide video conferences | 7,760 | 7,884 | 7,340 | |
Data center PUE | 1.79 | 1.91 | 1.73 | |
Social | SCVPS (RMB) | 4.73 | 4.87 | 4.78 |
Employees (domestic and overseas) | 89,542 | 87,828 | 87,331 | |
Female middle and senior management | 2,809 | 3,011 | 3,191 | |
Ethnic minorities | 4,042 | 3,992 | 4,000 | |
Customer satisfaction with visits return | / | / | 98.02% | |
Charitable donations made (RMB million) | 35.0662 | 43.3471 | 110.9675 | |
Anti-COVID-19 donations (RMB million) | / | / | 66.5530 | |
Poverty alleviation donations (RMB million) | 28.1579 | 32.9853 | 44.4145 |
1.3 Corporate Governance
A well-convinced, stable and effective corporate governance system is an important mechanism for a commercial bank to refine its modern financial enterprise system with Chinese characteristics, serve the real economy, prevent financial risks, and deepen financial reform.
Upholding the vision of "building the best bank in corporate governance", the Bank has strengthened its execution of corporate governance decisions, supervision, and evaluation, and steadily advanced the strategy of "developing into a world-class bank with broad wealth management characteristics and global competitiveness".
1.3.1 Overview
During the Reporting Period, the Bank strictly followed the laws and regulations, rules for listed companies, regulatory provisions and the Articles of Association. While it learned from excellent governance practices overseas, it also combined the practices with the realities of China and the industry to perfect the corporate government mechanism with Chinese characteristics for large commercial banks, where "the Party committee takes comprehensive leadership, the Board of
Directors makes strategic decisions, the Board of Supervisors supervise according to law, and Senior
Management gets authorized for operations". Centering on Party leadership and governance by shareholders, the Board of Directors, the Board of Supervisors and Senior Management, stakeholders and social responsibility, incentive and constraint mechanism, information disclosure, risk management and internal control, we strengthened institutional development and improved regulations. Balancing the COVID-19 response with reform and development, we went all out to complete the three tasks assigned by the central authorities: "serve the real economy, forestall and defuse financial risks, deepen the reform of the financial sector". In serving the new development pattern, we achieved high-quality development to provide high-level value return to all shareholders and investors.
Governance structure of BoCom
As of the end of the Reporting Period, there were 14 members in the Board of Directors, including 2 executive directors and 6 independent non-executive directors. The Board of Directors actively performed its strategic decision-making function, and all directors followed the high-standard code of professional ethics. The number of independent non-executive directors accounts for 1/3 of all members in the Board of Directors, meeting regulatory regulations. During the
Reporting Period, the Board of Directors held 3 Shareholders' General Meetings, reviewing and approving 25 proposals; 10 meetings of the Board of Directors, reviewing and approving 71 proposals; and 28 meetings of the five special committees under the Board of Directors, reviewing 115 proposals and reports. The attendance rate of all directors in the Board of Directors meetings exceeded the regulatory requirement by 2/3.
As of the end of the Reporting Period, there were 11 members in the Board of Supervisors, including 3 shareholder supervisors (1 Chairman of the Board of Supervisors), 4 external supervisors and 4 employee supervisors. During the Reporting Period, the Board of Supervisors carried out its work smoothly. Throughout the year, 7 meetings were held, reviewing 22 proposals and 7 special reports covering statutory significant matters. The attendance rate was 100%.
Highlights of Corporate Governance
Refining institutional | Reviewed and approved the Data Governance Regulations, the Internal |
system | Audit Charter and the Measures for Emergency Management, and approved revisions to the Outline of Internal Control, the Consumer Protection Policy, the Regulations for the Work of the Risk Management and Related Party Transactions Control Committee of the Board of Directors, and the Regulations for the Work of the Social Responsibility (ESG) and Consumer Protection Committee of the Board of Directors to continuously expand governance fields and refine the regulations concerning corporate governance. |
Promoting value for investment |
|
Safeguarding shareholders' rights and interests |
|
1.3.2 Strengthening Risk Control
Prudent operation is a solemn commitment we've made to every stakeholder. Under themultiplying effect of the COVID-19 pandemic, potential risks were exposed faster and various risks were intertwined. As such, commercial banks faced an unprecedented challenge that tested their defusing capability of major risks. Facing severe risks, the Bank, adhering to the philosophy of conducting prudent operation and realizing long-term value, has further optimized and improved the risk control strategy. We've made good use of the "good bank, bad bank" mechanism, focused on defusing existing risks and preventing incremental risks, better balanced long-term and short-term benefits, and improved long-term, stable development capability.
According to the requirement of streamlining the Group's procedural coordinating institutions, the Comprehensive Risk Management and Internal Control Committee was established by the
Bank's senior management. Two business review committees, Credit and Investment Review
Committee and High-risk Asset Review Committee, were also established under the Comprehensive
Risk Management and Internal Control Committee. Based on the same framework, provincial branches directly managed by the Head Office, overseas branches, subsidiaries, etc. have also established risk management and internal control committees accordingly to study the prevention and control of systematic regional risks, and to make decisions on major risk management issues.
In 2020, the Comprehensive Risk Management and Internal Control Committee held meetings quarterly. The Committee closely followed changes in the external environment, paid attention to the quality and efficiency of services for the real economy, and focused on fighting the pandemic as well as forestalling and defusing financial risks. It played a decisive role in the prevention of systematic regional risks, as well as early identification and prevention of major potential risks. The comprehensive efficiency of the Committee's working conferences, featuring time sensitivity, broad coverage, and a high overall stance, continued to improve.
As BoCom continues to invest in the comprehensive layout of the Fintech field, digital transformation is being empowered and risk control is being further enhanced.
Achievements in BoCom's "Intelligent Risk Control Early Warning Model"
Project topic | Honor |
AI-based Comprehensive Risk Management Monitoring | Banking Technological Development Award of the People's Bank of China, Second Prize |
Applying Multi-dimensional Knowledge Graph | Shanghai Financial Innovation Award, First |
to Assist in Business Model Innovation and Intelligent Risk Control Transformation | Prize |
Digital Internal Control | Leader Unit of the 2020 Special Task Group of the Fintech Committee of China Society for Finance and Banking |
1.3.3 Operation in Accordance with Law and Regulations
Adhering to the idea of compliance comes first, active compliance, and compliant operation by all employees, the Bank has facilitated observance of laws, regulations and normative documents related to business management, and strengthened compliance guarantee of business management laws.
Combat Against Corruption, Bribery and Four Undesirable Work Styles
The Bank firmly promotes the coordinated planning and integration of financial anti-corruption and financial risk handling by combining the investigation and handling of corruption cases with risk preventions and regulation enhancements. By strengthening financial supervision and internal governance, it imposes severe punishment on financial corruption and effectively handles every corruption case to maintain financial security and promote a healthy development. Resolutely carrying out the CPC Central Committee's eight-point decision on improving work conduct, the
Bank will target key nodes, give notice in advance, strictly and quickly punish those who knowingly violate regulations or repeat offences despite warnings, and promote a decent style of work.
Improving Supervisory Mechanism
Developing standard, rule-of-law-based, and targeted regulations | Formulated and issued over ten regulations, including Measures for Work Concerning Public Complaints and Reporting and Measures for Work Concerning Inquiries through Talk. |
Ensuring seriousness, synergy and effectiveness | Held joint meetings on supervisory work to improve the clue transfer mechanism for routine audit, risk and case prevention, compliance, etc. |
Strengthening supervision, regulation and governance | Strengthened management on supervisory punishment, supervisory circulation and handling of external inspection problems, severely |
punished 3 regulatory circulation problems, and adopted a combination of measures to urge Party organizations at all levels to fulfill their primary responsibilities. | |
Achieving joint discussion, sharing and co-governance | Enhanced coordination and corporation with the PBOC, CBIRC and the National Audit Office as well as inspection teams from brother companies, and participated in the establishment of communication mechanism between CBIRC (Large Commercial Bank Supervision Department) and discipline inspection institutions. |
In terms of training, taking the opportunity of special-topic study sessions, consultations with the Party Committee, warning campaign, etc., the Bank uses cases to explain discipline, interpret laws, show examples as a warning, and promote rectification. During the Reporting Period, the Bank conducted a warning campaign at the bank-wide working conference on "Party construction &
Improving the Party Working Style". 15 online training sessions titled "Weekly Lecture on
Discipline Inspection Business" were held among discipline inspection cadres across the Bank, as well as one special training session on the Governmental Punishment Law.
Key Performance
During the Reporting Period, the Bank
filed 469 cases, imposed Party disciplinary acts on 568 people;
handled 2,323 cases using "four forms";
issued 177 letters of discipline inspection recommendations;
tried and closed 0 corruption cases
Anti-Money Laundering and Anti-Fraud
The Bank has gradually promoted the establishment and improvement of fraud risk management policy and procedures on the Group level, accelerated the transformation of relevant management to be "risk-based", and improved the quality and efficiency in management.
Achievements in Establishing Anti-Money Laundering and Anti-Fraud Regulations
Anti-money laundering | A number of anti-money laundering management regulations, including Anti-Money Laundering Risk Management Strategies, Policies and Procedures of Bank of Communications Co., Ltd. (2020 Version) and the Anti-Money Laundering Management Measures of Bank of Communications Co., Ltd. (2020 Version) | The regulations reflect the latest regulatory requirements for anti-money laundering, meeting the actual needs of anti-money laundering management. |
Anti-fraud | Opinions of Bank of Communications on Preventing Criminal and Illegal Financial Activities by Employees (2020 Version) | The regulations focus on major fields and key links, emphasize early case prevention, and enhance the awareness of honesty in practice for cadres and employees. |
Trial Measures of Bank of Communications for Management of Criminal Cases (2020 Version) | The Measures further standardizes and strengthens the Bank's criminal case management work, and defines case prevention responsibilities to control the risks. | |
Reward Measures of Bank of Communications for Reporting of Case Risk (2018 Version) | The Measures encourages employees to report case risk in institutions at all levels, and refines the case prevention mechanism featuring early discovery, early warning and early handling. |
In 2020, BoCom continued to refine the organizational structure for anti-money laundering,streamlined the anti-money laundering workflow, and improved the anti-money laundering management system. It publicized knowledge on anti-money laundering compliance through videos, comics and Eqxiu, developed classified training on anti-money laundering, and enhanced anti-money laundering awareness across the Bank. It also went deep into communities, schools, enterprises and public institutions to carry out anti-money laundering campaigns, enhanced the public's awareness of the harm brought by money laundering crimes, and guided customers to actively fulfill anti-money laundering obligations.
In the fields of case prevention management and anti-fraud, the Bank conducted several rounds of training via the e-campus network platform, covering case prevention management personnel, corporate banking customer managers, small and micro enterprise customer managers, as well as technology management talent and new comers at all levels from the Head Office and branches, registering over 9,000 learners in total.
Protection of Intellectual Property Rights
BoCom attaches great importance to the protection and management of intellectual property rights. In 2020, the Bank revised the Measures of Bank of Communications for Management of Intellectual Property Rights (2020 Version), applied for patents, trademarks and copyrights, and strengthened the protection of intellectual property rights of innovative products, major brands and literary works. In respect of third-party intellectual property rights, the Bank has obtained 104 registered trademarks during the Reporting Period.
2. CSR Management
Adhering to the idea of high-quality modern corporate governance, the Bank has further improved the stakeholder protection mechanism, refined its CSR management system, and fully disclosed its CSR fulfillment and achievements, thus promoting the spread of CSR ideas and integrating them into its corporate culture and development strategy, and creating common values with stakeholders.
CSR Declaration
Achieve more through harmony and credibility and grow with society.
CSR Vision
Fulfill the responsibilities of a modern corporate citizen, while meeting the expectations of shareholders, customers, employees, and all other stakeholders as a global
CSR leader.
2.1 CSR Governance
The Board of Directors, as the highest decision-making body on the CSR work of the Bank, is responsible for approving the CSR Policy of Bank of Communications Co., Ltd. The Social Responsibility (ESG) and Consumer Protection Committee of the Board of Directors, is in charge of drafting the CSR strategy and policy for the Bank with authorization from the Board of Directors and in accordance with Committee Regulations. The Senior Management takes lead in executing the CSR strategy and policy approved by the Board of Directors, and periodically reports to the
Board of Directors and the Committee.
In 2020, the Board of Directors actively referred to the sustainable development idea with environmental, social and governance at its core, and approved the Proposal on Renaming the Social Responsibility and Consumer Protection Committee of the Board of Directors and Revising Its Work
Regulation. "Social Responsibility and Consumer Protection Committee of the Board of Directors"
was renamed as the "Social Responsibility (ESG) and Consumer Protection Committee of the Board of Directors". Additionally, the Committee regulations were revised to further define the responsibilities of the Board of Directors in areas like studying, developing and evaluating the
Bank's ESG performance and measures, as well as strengthening ESG information disclosure.
The Social Responsibility (ESG) and Consumer Protection Committee of the Board of
Directors of BoCom (hereinafter referred to as the "Committee") carries out the following work in accordance with work regulations and the authorization of the Board of Directors:
drafts CSR strategy and policy suitable for the Bank, executes the plan and measures to fulfill
CSR, periodically reviews CSR achievements, and submits an annual CSR report to the Board of Directors;
studies, develops and evaluates measures to improve the Bank's ESG performance, promoting
ESG information disclosure;
reviews the strategy, policy and goals of consumer protection work; submits reports (annual and others) on consumer protection work; conducts work following the authorization of the
Board of Directors; studies key issues and important policies on consumer protection; and implements comprehensive, timely and effective supervision on the Senior Management and the consumer protection department;
reviews credit policies involving environment and sustainable development;
approves external donations according to the authorization of the Board of Directors;
oversees, inspects and evaluates the Bank's implementation of CSR, ESG and consumer protection strategies, policies, plans, measures and other related work; submits proposals to the
Board of Directors; and
completes other matters authorized by the Board of Directors.
In 2020, the Social Responsibility (ESG) and Consumer Protection Committee of the Board of
Directors held a total of 5 meetings, in which it reviewed 14 proposals and reports including the annual CSR report, the annual report on green credit work, the renaming of the Committee and revision of its work regulations, and the request submitted to the Shareholders' General Meeting to confirm material donations for combating the COVID-19 pandemic of 2020. It also reported deliberations to the Board of Directors.
A meeting of the Social Responsibility (ESG) and Consumer Protection Committee of the Board of Directors of BoCom
Key Performance
During the Reporting Period, the Bank was awarded "GoldenBee Leading Enterprise
Award 2020 with an excellent CSR Report".
Materiality Analysis
During the Reporting Period, BoCom identified, updated, adjusted and re-prioritized the material topics in 2019 following the materiality definition process and methods
proposed in the GRI Sustainability Reporting Standards. It also determined the Bank's key
topics of management and information disclosure.
BoCom Matrix of Materiality Analysis 2020
1 Corporate culture building | 2 Assistance to employees in difficulties | 3 Voluntary services | 4 Work-life balance |
5 Occupational health and safety | 6 Green Operations | 7 Employee training and development | 8 Green Services |
9 Protecting the rights and interests of employees | 10 Increasing returns to shareholders | 11 Party building | 12 High-quality development |
13 Popularizing financial knowledge | 14 Innovative financial products | 15 Green Finance | 16 Engagement in charity |
17 Inclusive finance | 18 Poverty alleviation | 19 Following national strategies | 20 Improving customers consumption experience |
21 Serving the people's livelihood | 22 Serving the real economy | 23 Protecting the rights and interests of customers | 24 Compliance |
25 Forestalling financial risks | 26 Deepening reform |
2.2 Stakeholder Communication and Engagement
Stakeholder | Description | Primary concern | Communication approach | Main response |
Customers | Current and prospective customers | Convenient, efficient, and quality financial services | Product promotion; Customer service hotline; Online and offline activities | Providing efficient, quality services; Developing new financial products; Protecting customer information |
Shareholders | Holders of the Bank's shares | Good return on investment Fair, impartial, transparent and timely information disclosure | Shareholders' general meetings; Investor activities; Company announcements | Stable operations; Effective investor relations |
Government agencies | Government at all levels; People's Bank of China and its branches, China Banking and Insurance Regulatory Commission and its | Maintaining stability of financial system, facilitating the development of national economy, and improving the | Policy directives; Work reports; Day-to-day communication | Abiding by laws and regulations; Serving regional coordinated development; Serving the real economy; Focusing on inclusive finance; |
agencies, China Securities Regulatory Commission; administrative agencies for industry and commerce and taxation at all levels, etc. | people's well-being, etc. | Serving rural vitalization; Providing green credit | ||
Employees | Bank staff, regardless of position or duration | Stable employment, proper benefits, satisfactory working conditions, growth opportunities | Employee congress; Personnel opinion solicitation; Counseling sessions | Protecting employee rights and interests; Growing together with employees |
The environment | The ecological environment of areas covered by the Bank's business and other affected areas | Paying close attention to climate change, and supporting a low-carbon economy | Information disclosure; Pricing strategies | Promoting green credit; Green services; Green operations; Green procurement; Eco-friendly charity |
Communities | General public and | Social harmony and | Financial service activities; | Engaging in charitable |
organizations in areas covered by the Bank's business and other affected areas | improved well-being | Public interest activities | activities; Organizing volunteer activities; Popularizing financial information | |
Partners | Suppliers, peers and other institutions in business with the Bank | Honesty, mutual benefit, fair procurement, and win-win cooperation | Purchasing by Invitation to Bid; Business exchanges and cooperation | Responsible procurement; Business cooperation |
Social organizations | Industry associations (e.g., China Banking Association), and non-profit organizations (e.g., environmental or public interest) | Boosting development of the industry as well as social harmony | Information disclosure; Various related activities | Accepting supervision; Participating in industry activities |
2.3 Honors
2020 Ranking/Honor | Sponsor/Granted by |
Comprehensive Ranking | |
Top 1,000 World Banks 2020 (No. 11) | The Banker (UK) |
Fortune Global 500 - 2020 (No. 162) | Fortune (USA) |
Brand Rewards | |
A-rated Consumer Protection Bank of PBOC | PBOC |
Achievement Award for Participating in the Belt and Road Initiative | CBA |
Achievement Award for Helping to Win the Three Critical Battles | CBA |
Best Green Finance Achievement Award | CBA |
National Financial Pioneer | National Committee of Chinese Financial Workers' Union |
People's CSR Awards - Poverty Alleviation Award of the Year, Case of the Year | people.cn |
Outstanding CSR Enterprise Award 2020, Excellent Case Award | Xinhuanet |
Vanguard Enterprise in Targeted Poverty Alleviation | China.org.cn |
China CSR Rankings: Best Public Interest Practice Award | CBN |
2020 Best Bank for Poverty Alleviation | Financial Times |
Brand Image Bank of the Year | Sina |
Innovative Fintech Bank of the Year | Sina |
Business Awards | |
The Second Prize of the Banking Technology Development Award | PBOC |
2020 Excellence Award in Innovative Cooperation of CUP Cards | China UnionPay |
The Gamma Award for Banking Fintech Innovation | Securities Times |
The Second Prize of the Best Application Results Award at the Fintech Application Results Competition of the Chinese Banking Industry | China Banking |
2020 IDC China Digital Transformation Awards - Technology Application Scenario Innovation Award in the Chinese Financial Sector | IDC |
The Gold Medal Awards of Chinese Financial Institutions 2020 - Financial Leasing Company of the Year | Financial Times |
China ESG Golden Awards 2020 - Best Asset Management Institution in Responsible Investment | Sina Finance |
The Golden Amber Award - 2020 Selected Private Bank for Wealth Management | China Business |
The Most Popular Custodian Bank of 2020 | East Money |
"Golden Wealth Management Awards" - Top Wealth Management Brand | Shanghai Securities News |
Top Ten Star Fund Companies | Securities Times |
3. Feature 1: Rationally Respond to and Assist in the Fight against the Pandemic through
Finance
Responding to the Trend of Sustainable Development
Facing the severe and complex pandemic situation, BoCom, as always, has continued to fulfill its responsibilities as a state-owned commercial bank. From assisting in the prevention and control of the pandemic to supporting work and production resumption, the Bank has carried out its founding mission of serving the real economy with speedy, powerful and warm measures. At critical times, it has mobilized strong positive energy to overcome difficulties and went all out to fight the pandemic.
SDGs
Our Moves
Supporting pandemic prevention and control; assisting in resumption of work and production
Our Performance
In the early days of the outbreak, BoCom was among the first financial institutions to donate money to Hubei Province
As of the end of the Reporting Period, the Bank has
allocated RMB7.2 million special pandemic control funds
donated money and materials totaling RMB29.3844 million to Hubei
Anti-COVID-19 donations RMB66.5530 million
granted nearly RMB400 billion in pandemic-related loans
3.1 Overcoming Difficulties and Providing a Strong Financial Back
After the outbreak of the pandemic, BoCom has been helping enterprises severely affected by
the pandemic through measures like strengthening credit support for enterprises on key lists and major areas, donating targeted funds and opening green channels, and building a strong financial back to fight the pandemic with precise and efficient service guarantee.
Upping the Financial Service Support
Assisting in pandemic prevention and control |
|
Supporting work and production resumption |
|
Case: "BoCom Speed" in the fight against the pandemic
Special re-lending serves as the "emergency money" or "life-saving money" for enterprises.
During the pandemic, based on the national and local enterprise lists eligible for receiving special re-lending funds released by the People's Bank of China, BoCom has comprehensively investigated the financing needs of pandemic control related enterprises, as well as micro-, small- and middle-sized enterprises. Special re-loan has pushed the docking of branches and sub-branches across China through head office-to-headquarter cooperation, and a full-service, efficient nationwide demand response mechanism has been established to provide customers with directional support such as special funds, exclusive offers, specially assigned personnel service, and exclusive service.
Sending strong fund support | Sinopharm Group Shenyang Co., Ltd., responsible for purchasing part of drugs and relevant pandemic prevention and control materials for Liaoning, faced a huge gap in working capital when there was a surge in orders. BoCom Liaoning |
when pandemic prevention materials ran low | Branch was able to meet the company's urgent fund needs in only one day, granting RMB15 million in loan to the company. |
Reducing fees to help the special- purpose vehicle manufacturer overcome difficulties | Undertaking the arduous task of manufacturing negative pressure ambulances, Ningbo Careful Special-purpose Vehicles Co., Ltd. was under a tight budget with its original credit funds. BoCom Ningbo Branch visited the company to provide financing service. Following the principle of handling special cases with special methods, the branch was able to complete account opening, credit application and loan review & approval for the enterprise within two days. Stakeholder Testimonial "Our production is currently still supersaturated. Thanks to BoCom's efficient financial services, we were granted RMB10 million in credit loan in two days with a low interest rate. BoCom has solved our urgent need!" Person in charge of Ningbo Careful Special-purpose Vehicles Co., Ltd. |
Extending loan period to help small and micro enterprises who were under soaring financial pressure | For micro- and small enterprises (MSEs) and self-employed individuals, BoCom Qinghai Branch did not blindly call in loans, cut off loans, or suppress loans. Instead, it actively supported their normal operation by extending repayment period, reducing or waiving overdue interests, and implementing credit reorganization. During the Reporting Period, the branch extended repayment service for 144 MSEs covering a total of RMB23.98 million, helping them to overcome difficulties while ensuring that the practices are compliant and the risks are under control. |
Case: Launching the First Ultra-Short Financing Bonds for Pandemic Response of Power
Enterprises in China
Pandemic control is not only a fight of the health and medical field, but also a comprehensivebattle that involves economic and financial undertakings. BoCom Jiangsu Branch, following the latest national policy on anti-pandemic bonds closely, actively investigated and learned about the financial service requirements of key energy guarantee enterprises within the region, and opened a green channel for key pandemic response enterprises.
CHN Energy Jiangsu Power Co., Ltd., one of the major power suppliers in the Jiangsu
Province, provides powers to more than 70 institutions and enterprises involved in medical care, sanitation and guarantee of people's livelihood within its business area. During the pandemic, due to a sudden surge in power demand and production pressure, the company's demand for capital turnover increased. BoCom Jiangsu Branch immediately assisted the company by issuing RMB850 million ultra-short financing bonds. This serves as the first ultra-short financing bonds for pandemic response of power enterprises in China.
Stakeholder Testimonial
"'BoCom Speed' is awesome! BoCom not only relieved our most urgent needs for production funds but also met the power and thermal demand of local units participating in the fight against the pandemic."
Person in charge of CHN Energy Jiangsu Power Co., Ltd.
The CPC Hubei Provincial Committee and the Hubei Government thank BoCom for its monetary and material donations to Hubei for pandemic prevention and control, as well as its executions on special financial service measures and policies
BoCom Shanxi Branch visits community workers at the frontline of the fight against the pandemic
BoCom Anhui Branch donates anti-pandemic materials to poverty alleviation units
BoCom Hubei Branch visits pandemic prevention and control enterprises
BoCom Hunan Branch opens a green channel to alleviate the procurement pressure of protective supplies for local enterprises
3.2 Protecting Employees' Safety
Ensuring the health and safety of employees is the Bank's top priority. Only with a strong protective wall can the Bank better fight the pandemic. Facing the unexpected COVID-19 outbreak, the Bank has protected the health and safety of its employees to the greatest extent. After the outbreak, the Bank immediately developed a pandemic prevention and control plan with comprehensive and targeted measure, staying in line with strategy of implementing pandemic prevention and control while ensuring financial services.
Key Measures for Internal Pandemic Prevention and Control
Acting fast to establish a leading group | In January 2020, the BoCom CPC Head Office Committee studied and arranged COVID-19 pandemic prevention and control work at the expanded meeting, and decided to establish the BoCom COVID-19 pandemic response leading group based on the previous emergency leading group. It also guided other units to set up their own leading groups for pandemic prevention and control. |
Strengthening management guarantee | The Head Office increased the quota of special funds to ensure that the expenditures of pandemic control measures across the Bank are sufficient and in place. |
| |
Providing warm care to employees |
|
Key Performance
During the Reporting Period, the COVID-19 pandemic response leading group held a total of 14 meetings.
A total of 90 internal pandemic response policies were developed and optimized.
6,147 person-times were granted the temporary mobile office permission across the Group to meet the need for working from home.
As of the end of the Reporting Period, there were no cluster cases of COVID-19 across the
Bank. Of the 56 total confirmed cases in the Bank, 49 were cured and discharged, and 7 (all of which are employees at overseas branches) are in stable condition.
Case: Providing Support for the Overseas Battle against the Pandemic
The pandemic will negatively impact overseas operation to an extent, especially in places like
Europe where the pandemic has hit hard, and branch business expansion will feel the impact for some time. BoCom Luxembourg Branch has carefully analyzed the decline in communication and operation efficiency caused by telecommuting, as well as the potential risks behind. The Branch has actively promoted the R&D of digital solutions, centrally deployed IT core physical facilities across the region within its jurisdiction, and established integrated IT architecture and management system to improve operation maintenance efficiency. In addition, the branch has paid great attention to humanistic care during the pandemic, always putting the health and safety of employees in the first place. Meanwhile, the real difficulties of employees have been included in the branches' plan of pandemic guarantee for the region within its jurisdiction.
Buying scarce protective supplies from various channels to ensure sufficient anti-pandemic supplies for every employee
Disinfecting office spaces to ensure safe resumption of work
The labor union of BoCom visits employees in need during the pandemic
4. Feature 2: Upholding its Mission in the Fight Against Poverty
Responding to the Trend of Sustainable Development
2020, the last year in the mission to build a moderately prosperous society in all respects and secure a decisive victory in the battle against poverty, BoCom focused on "two assurances and three
guarantees" (ensuring the basic living needs of rural poor populations and access to compulsory education, basic medical services, and housing), and continuously consolidated achievements in
poverty alleviation. It also firmly executed the requirements of poverty alleviation tasks of keeping poverty alleviation policies in force, provided assistance and prioritizing oversight to prevent the return to poverty, and ensured that the objectives, channels and intensity of poverty alleviation efforts remain unchanged, ultimately promoting the effective transition from poverty alleviation to rural revitalization.
SDGs:
Our Moves
Support targeted poverty-stricken areas; poverty alleviation through finance; partner assistance.
Our Performance
Contributed RMB33.489 billion in outstanding loans for targeted poverty alleviation, a net increase of RMB7.842 billion (30.58%) from the beginning of the year.
Bought and helped to sell RMB 26.24 million worth of agricultural products from poor areas.
Across the three designated counties that the Head Office paired up with:
RMB24.88 million were invested
RMB7.6047 million were introduced
In 2020, the final year of the 13th Five-year Plan, China made historic achievements in building a moderately prosperous society in all respects, winning a decisive victory in the battle against poverty. Standing at this critical point as China embarks on the 14th Five-year Plan period, BoCom has reviewed its achievements in poverty alleviation during the 13th Five-year Plan period, and reorganized the ideas and models of poverty alleviation to lay a solid foundation for effective rural revitalization.
The Featured "Locomotive" Poverty Alleviation Model of BoCom
Dual-engine | Led by Party Building |
Financial Features | |
Dual-wheel | Continuous Drive |
Endogenous Power | |
Dual-light | "Blood Transfusion" Assistance |
"Blood Making" cultivation | |
Dual-track | Consolidating Poverty Alleviation Achievements |
Connecting to Rural Revitalization | |
Dual-whistle | Publicity and Promotion |
Supervision of Style of Work |
4.1 Dual-engine: Assisting in National Strategies
As a central financial institution, BoCom has always prioritized poverty alleviation as its top political task and the "No.1 Project" in fulfilling social responsibilities. It has continued to refine its poverty alleviation management to contribute to the fight against poverty, aiming to achieve the first
Centenary Goal of building a moderately prosperous society in all respects.
4.1.1 Led by Party Building
The Bank takes poverty alleviation as an important task promoted by Party building. It hasimplemented the top leader responsibility system of Party committees at all levels of the Head Office and branches in poverty alleviation, and established the joint action mechanism between the Party committee at the Head Office and local Party committees. Combining the theme of "keeping the mission in mind", it has promoted the "double-win" theory of Party building in its efforts of poverty alleviation.
Organization and Leadership
BoCom has established a leading group for poverty alleviation and appointed the Secretary of the CPC BoCom Committee as the head of the group, while members of the CPC BoCom
Committee responsible for poverty alleviation in targeted poor areas and inclusive finance serve as the group's deputy heads. It has also held meetings for the leading group for poverty alleviation and special guidance meeting periodically to study the latest instructions and guiding principles of the central government on poverty alleviation. This has helped to ensure that such instructions and guiding principles have been fully understood, that leadership and guidance have been effective, and that the measures have been put in place. The aim is to have plans developed at the beginning of the year, surveys conducted throughout the year, and summaries reported at the end of the year.
Organizational structure for poverty alleviation of BoCom
In 2020, BoCom released the 2020 Poverty Alleviation Plan of Bank of Communications, the
Opinions on the Implementation of Party Building and Promoting Poverty Alleviation Efforts
at the Crucial Stage, and the 2020 Partner Poverty Alleviation Plan of Bank of
Communications
In December 2020, Ren Deqi, Party Secretary and Chairman of BoCom met with Director Liu Yongfu and Deputy Directors Hong Tianyun and Xia Gengsheng of the State Council
Leading Group Office of Poverty Alleviation and Development in Beijing
In September 2020, Ren Deqi, Party Secretary and Chairman of BoCom paid a survey visit to
Litang County, Sichuan Province
In September 2020, Liu Jun, Deputy Party Secretary and President of BoCom, paid a visit to
Hunyuan County in Shanxi Province to survey the poverty alleviation work
Gathering Forces
The Bank has earnestly studied the 13th Five-year Plan for Poverty Alleviation issued by the
State Council, and formulated the 2020 Poverty Alleviation Plan of Bank of Communications (J.Y.B.F. [2020] No. 23) following the requirements specified in the Central Unit's Responsibility Statement on Support for Targeted Poverty Alleviation Areas. 44 domestic branches and sub-branches were mobilized to participate in the poverty alleviation work for the three designated counties that the Bank paired up with, gathering forces to win against poverty.
The Poverty Alleviation and Corporate Culture Department of BoCom was awarded the "National
Advanced Collective for Poverty Alleviation" by the CPC Central Committee and the State
Council
4.1.2 Financial Features
As a century-old national financial vanguard, BoCom has conscientiously implemented the general requirements of the CPC and the central government on poverty alleviation through finance.
It has actively given play to its strengths in finance, emphasized financial means in poverty alleviation, and reflected the features of finance in poverty alleviation work, demonstrating the value of finance in the process.
Developing new business models | Aiming to improve the production and living conditions in poor areas and increase the income of poor households, BoCom has been exploring diversified business models for poverty alleviation through finance, such as the "leading enterprise + cooperative + farmer household" financing model, the land increase/decrease linked loan model, the guarantee company (fund) cooperation model, the west and east region collaboration model, the interbank financial institution cooperation model, and the institution-organization- association cooperation model, etc. to improve financial functions and strengthen financial service availability in poor areas. |
Establishing long-effect mechanisms | Not long after the policy was issued, BoCom started to get into poverty alleviation through finance in various aspects. By studying differentiated credit support policy, refining the evaluation |
mechanism, and strengthening the coordination between the Head Office and branches, the Bank has established long-effect mechanisms to guide targeted poverty alleviation. | |
Strengthening risk prevention and control | While increasing input in financial resources, BoCom has placed heavy emphasis on the potential financial risks of poverty alleviation. It has continued to strengthen good faith education among poor people and post-lending management, as well as coordination with local governments. It has avoided stressing credit access ratio to poor people one-sidedly, stopping them from getting into excessive debt. |
In May 2020, Guo Mang, member of the Party Committee and Vice President of BoCom, visited Gansu Jinnongshang Company to inspect the poverty alleviation project through industrial
development
4.2 Dual-wheel: Working together to Break New Ground
To get rid of poverty and become better off, other than external push such as policies and funds, the will and determination of the people in poverty are equally important. BoCom has implemented various poverty alleviation policies to build up people's will to fight poverty, stimulating their continuous drive to shake off poverty and become better off.
Continuous push | Leveraging its financial strengths, the Bank has cooperated with stakeholders such as local governments, targets of poverty alleviation and business partners to form the implementation path of targeted poverty |
alleviation with finance, consumption, healthcare, education, industrial development, etc., at its core, thereby ensuring that all poverty alleviation measures were put in place. | |
Endogenous drive | By inviting people who got rid of poverty to share their experiences, the Bank has demonstrated the importance of "confidence and capacity building". By organizing poor people to go out to expand their horizon, strengthen knowledge and skill training, the Bank has enabled poor people to gain experience and skills in industrial development. |
Donations for poverty alleviation during the 13th Five-year Plan period (RMB10,000) by BoCom
Note: "Other donations" in 2020 are mainly donations for the fight against the pandemic
Amount of donated funds to the three designated poor counties during the 13th Five-year Plan period (RMB10,000) by BoCom
4.3 Dual-light: Seeking Development Together
BoCom adheres to the overall planning of development-based poverty alleviation and guarantee-based poverty alleviation, and regards development-based poverty alleviation as the fundamental approach to overcome poverty. In view of the poverty causes and the structure of the poverty-stricken population, the Bank has strengthened and refined guarantee-based poverty alleviation measures to give full play to the combined effect to the two approaches.
4.3.1 Implementing Poverty Alleviation through Healthcare to Ensure a Healthy Life
The Bank has steadily carried out aid work centering on the "basic medical services" of the "two assurances and three guarantees". To address the difficulties of visiting a doctor and the problem of imbalanced health resources in remote areas, the Bank has increased fund investments, promoted popularization of basic medical services and infrastructure construction, actively provided special aid to plateau regions, prioritized the needs of anti-pandemic projects, and effectively improved medical services.
During the Spring Festival of 2020, after a COVID-19 case was confirmed in the designated poverty-stricken county, Hunyuan County of Shanxi Province, BoCom immediately equipped the county with negative pressure ambulances and Computed Tomography (CT) detection devices.
After the devices were put into use, about 10,000 person-times went through CT examinations, of
which 2,000 were from registered poor households; negative pressure ambulances transported
over 160 person-times, including about 40 registered poverty-stricken households
In December 2020, the "BoCom Hope" Campaign to Help Children with Congenital Heart
Disease at Litang County, Sichuan Province, launched its fourth batch of treatments. Pan Qi
(BoCom cadre, first on the right), Deputy Party Secretary of Litang County, Sichuan Province, and
the local young man Ding Zhen visited children with congenital heart disease
Key Performance
During the Reporting Period, the Bank invested RMB11.349 million in basic medical services and helped a total of 62,251 poor people.
4.3.2 Promoting Poverty Alleviation through Education by Attaching Importance to
"Confidence and Capacity Building"
Upholding the idea of building confidence and capacity before poverty alleviation, the Bank has given great effort to prevent intergenerational transmission of poverty, and gathered the forces of the Group to help improve education facilities and quality, helping students to find jobs in poor areas.
Besides poverty alleviation through education, BoCom has built a poverty alleviation cadre and talent team for counties in need through education and training of primary-level cadres, industry leaders and technical personnel, helping farmers in poor counties to improve income-generating skills and build confidence.
Key Performance:
During the Reporting Period, the Bank invested RMB11.621 million in compulsory education, helping a total of 32,906 poor people. 1,988 county-level, town-level and village-level basic-level cadres, as well as 544 technical personnel in the three designated counties were also trained.
In September 2020, Ren Deqi, Party Secretary and Chairman of BoCom visited Litang County,
located over 4,000m above the sea level, to survey poverty alleviation work and encourage
Tibetan students to study hard
In October 2020, BoCom organized 2020 training class of leaders in becoming better off at
designated counties
4.3.3 Gathering Strength from Various Parties to Assist in Poverty Alleviation through
Consumption
Centering on the methods of "purchasing on our own" and "assisting in sales", the Bank has developed a new partner assistance model between business units and the designated poverty-stricken counties to provide stable income-increasing channels for more poverty-stricken households. The "BoCom model" has been built for poverty alleviation through e-commerce, where "the bank provides the platform, the government offers assistance, and the enterprises earn profit".
With this model, quality local products in poverty-stricken areas could be sold nationwide and even overseas.
"Building canals to channel water" and developing innovative poverty alleviation models through
consumption
Arousing the Bank's resource potential |
|
Promoting cooperation with external strengths |
|
Key Performance:
During the Reporting Period, the Bank actively bought agricultural products totaling
RMB7.6556 million from designated counties through canteen procurement and employee benefit procurement. The purchase amount increased by about 25% on average in each of the three counties.
Mobilized by the Bank, employees of the Group and corporate customers bought RMB18.5796 million in agricultural products, an increase of 10%, benefitting more than 30,000 people in the poverty-stricken counties.
In January 2020, BoCom launched the "New Year Shopping Festival for Poverty Alleviation"
campaign on its credit card app and mobile bank. Through the penetration of we media matrix combined with social media, it brings "new blood" into the cause of poverty alleviation. During the campaign, a total of 9,976 orders were placed, with a sales volume of RMB1.6563 million, 6
times more than the total sales throughout 2019
During the pandemic, BoCom Hubei Shiyan Branch carried out consumption-based poverty alleviation activities to support the development of characteristic industries in poverty-stricken
counties
4.3.4 Integrating Advantaged Resources and Developing Poverty Alleviation through
Industrial Development
The Bank has attached great importance to cultivating the designated counties to form an ecosystem for poverty alleviation through Industrial development integrating production and sales.
Based on local resource endowment, the Bank has changed the poverty alleviation approach from the simple "Blood Transfusion" assistance to the "Blood Transfusion + Blood Making" approach.
The approach aims to improve the designated counties' own development capability, give them a leg up to get them going, and help them cultivate and expand industries that can help them shake off poverty with their characteristic resources.
Key Performance
During the Reporting Period, the Bank supported 4 leading enterprises and rural cooperatives in the three designated counties, introduced 86 enterprises, and helped 5,494 registered poor population get rid of poverty.
BoCom Guangdong Branch launched the "Jinfeng Rice" project. The selling price was raised
three times, and monthly sales recorded 15,000kg continuously. Jinfeng Rice was included in the
directory of the first batch of poverty alleviation products of Guangdong Province
Based on the advantaged natural environment of Yanghua Village in Liangcun Town, Xishui
County, Guizhou Province, BoCom poverty alleviation cadres introduced golden lemons and built
a 150mu golden lemon planting base in Yanghua Village. Through the cooperation model of "collective economy + poor households", it engaged 65 poor households to participate in planting.
Each household registered an annual income increase of about RMB4,000, making golden lemons
the "income-generating fruits" for villagers
4.4 Dual-track: Working for a Better Life Together
BoCom has worked hard to fully understand the meaning of "targeted poverty alleviation",
determined to put quality before speed in poverty alleviation work, and developed rational povertyalleviation plans to ensure the effectiveness of the work, so that the poor can truly get rid of poverty.
The Bank has explored effective ways to comprehensively consolidate the achievements in poverty alleviation and promote the dynamic transition to rural revitalization.
Consolidating achievements in poverty alleviation | Developed the "four-step" ("helping up, stand, walk and run") assistance plan to solve the problems addressed in "two assurances and three guarantees" for poor counties. Provided cushion guarantee for poverty-stricken households by establishing poverty-returning prevention monitoring mechanism, etc., ensuring the "last mile" of poverty alleviation work to prevent the return to poverty. Worked to win the battle against poverty by dispatching cadres and investing in projects, teaching skills and expanding markets. |
Transitioning to rural revitalization | Planned the transition work from poverty alleviation to rural revitalization in advance, and gradually adjusted the fund transfer approach aimed at absolute poverty to dynamism-creating assistance aimed at relative poverty through industrial development. |
At the end of June 2020, the Bank went beyond the six targets laid out in Central Department's
Responsibility Statement on Support for Targeted Poor Areas ahead of schedule. All three
designated counties that the Bank paired up with were lifted out of poverty by February 2020. The per capita income of the poor population increased significantly from when they were registered as poor population. The per capita income of the poor population in Tianzhu County increased from
RMB2,580 in 2014 to RMB8,210 in 2020, a growth of 218%. In Litang County, per capita income increased by 236% from RMB2,310 to RMB7,754. In Hunyuan County, this number increased by 153%, from RMB2,760 to RMB6,989.
Target | Performance | Growth Rate |
Poverty alleviation funds from BoCom | RMB24.88 million | 3.61% |
Funds channeled by BoCom from other sources | RMB7.6047 million | 14.6% |
Training of basic-level cadres | 1,988 persons | 74.69% |
Training of technicians | 544 persons | 28.3% |
Procurement of agricultural products from impoverished areas | RMB7.6556 million | 21.63% |
Support in marketing agricultural products from impoverished areas | RMB18.5796 million | 9.83% |
4.5 Dual-whistle: Using Publicity to Support Poverty Alleviation
BoCom has actively used the power of publicity to provide strong support for poverty alleviation. It has gathered external forces and strictly implemented work style building in poverty alleviation within the Bank. In addition, it has continued to step up efforts in publicity, maintained the wave of publicity, and expanded the depth of publicity to gather consensus on winning fight against poverty.
Publicity and promotion |
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Work style supervision | Strict organizational management: By standardizing poverty alleviation funds, stepping up accountability efforts, and adopting stricter cadre evaluation, the Bank has strengthened its work style management on the |
institutional level to ensure that all poverty alleviation tasks are completed with high quality.
Self-inspection and self-correction: The Bank has audited donations for
poverty alleviation, and handled problems related to the style of work separately. While effectively cooperating with the national poverty census work, the Bank has realized "full coverage" of poverty alleviation work in designated counties (towns and villages) at all levels.
In October 2020, China Finance published a signed article titled "Five Adheres" to Assist in
Poverty Alleviation with High Quality by Ren Deqi, Party Secretary and Chairman of BoCom
BoCom has inspected the style of work in poverty alleviation across the Bank through material reference, interview with individuals, field visits, etc., and further created a clean, solid poverty alleviation work atmosphere to ensure the smooth implementation of poverty alleviation work
4.6 Highlights of Poverty Alleviation Initiatives at Provincial Branches and Subsidiaries in 2020
The Bank has carried out the important instructions of General Secretary Xi Jinping at the symposium on resolving the prominent problems addressed in "two assurances and three guarantees". It takes the "two assurances and three guarantees" of the poverty-stricken population as the core indicator for evaluating the results of poverty alleviation work, aiming to improve the production and living conditions of the poor and enhance their sense of gain and happiness.
Provincial branches and subsidiaries conducted targeted and efficient poverty alleviation work
with their own characteristics
"Two assurances and three guarantees" | ||
Fujian Branch ThebranchdonatedRMB120,000 to YankouVillage in Shuixi Town, Ninghua County, Sanming City for its Tongzu Road building project, RMB80,000 to Hengsuo Village in Chengnan Town for its tap water well digging and waterchannelingproject, andRMB90,000 to Shangping Village in Chengnan Town for its canal repairing project. Once the projects conclude, 1,314 farmer households or 5,381 villagers will be | Shaanxi Branch In recent years, the branch has injected RMB1.775 million funds for poverty alleviation into Ligou Village, the designated village that the provincial branch has paired up with. Funds have been used to build gravel roads and drinking water cisterns to solve difficulties in travel and drinking water for the villagers. It also donated a charity supermarket and built apple refrigeration houses as well as supporting PV power plant, greatly improving the | Guangxi Branch The branch communicatedactivelywiththecompetent governmental department administering the designated village for poverty alleviation, raised funds through various channels, built hardened cement roads, completed the drinking water improvement project, and improved the well-being of the villagers. The branch donated a total of RMB600,000 to Pingliu Village to support its characteristic oil tea industry, built a 10,000mu oil tea |
benefitted. | productionandlivingconditions of the villagers. | planting demonstration area in Guangxi, and stimulated the development of the village's collective economy. |
"Two assurances and three guarantees" | ||
Compulsory education | ||
Beijing Branch ThebranchchanneledRMB300,000 funds to help the "3+2" kindergarten-elementary integrated school building project of the No. 9 MigrantSettlement in Songshan Town, Tianzhu County, effectively difficulty Gansu Province, solving the of access to education for children of school age and realizing their dreams of going to school. | Dalian Branch The branch carried out the "Unite for a Better Future • Make Dreams Come True" student aid program to aid 13 poor students from 11 households. With "Farmers' Library" as the carrier, the branch also established the "Rural Self-study Room" to donate school supplies such as schoolbags and water as well as daily necessities, improving their learning conditions and stimulating their enthusiasm to study. | Bank of Communications Schroder Fund Management Co., Ltd. Responding to the call of theAsset ManagementAssociation of China, Schroder participated in the "Fenxi County Dream Center Classroom Project" initiated by the Dream Center public service system for literacy education, donating a "dream classroom" worth RMB200,000 and necessitiesworthRMB100,000 to TuanbaiSchool in FenxiCounty to promote poverty alleviation through education. |
Basic medical services | ||
Shenzhen Branch For many years, the branch has invited experts from | Ningbo Branch ThebranchchanneledRMB200,000 socialfunds | BoCommLife Duringthepandemic,BoCommLife, in cooperation |
medical institutions, such as Shenzhen Baosheng Women's and Children's Hospital and Futian Hospital, to visit patients in poor households and conduct physical examination and diagnosis of common diseases, protecting the health and safety of impoverished villages. | into Hunyuan County to build hyperbaric oxygen chambers and supporting infrastructure, which effectively prevented and treated various diseases, met the medical needs of 360,000 residents of Hunyuan County, and benefited more than 55,000 impoverished individuals. | withShanxiBranch,purchased one RMB400,000 CS-1200 Auto-Chemistry Analyzer for the isolation point at Hunyuan County Hospital of Traditional Chinese Medicine, serving a total of 8,486 patients across the county. |
Safe housing | ||
Jiangxi Branch For the designated village, Longtang Village in FutanTown,Qingyuan District,Ji'an City, the branch established PV panels with installed capacity of 100kW, built 2.3km hardened roads, and installed 70 sets of solar street lamps to light up their "way home", improving more than 2,700 people's living conditions and fully covering the villagers with safe housing. | Ningxia Branch The branch assisted the village Party branch committee and villagers' committee of Lijigou Village, Huamachi Town, Yanchi County in repairing 12 houses andrenovating 12 dilapidatedhouses. The branch also verified the causes of poverty and house conditions of every registered poor household, established family records for 4 marginal households and 1 monitored household,anddeveloped assistance a plan one-to-onetohelp | Gansu Branch The branch coordinated andinvestedRMB735,000 infunds, and implemented projects such as drainage channels, revetments, flush toilets, river embankments, submersible bridges, road shoulder repairing, etc. in 10 designated villages within its jurisdiction to improve areas with weak infrastructure in poor villages and provide living and travel convenience to the villagers. |
villagers solve problems of income and housing, thereby improving their living conditions.
5. Driving Economic Development by Adapting to Changes of the Times
Responding to the Trend of Sustainable Development
Economic growth serves as the foundation for all-round development. In 2020, BoCom actively integrated into the blueprint of national development to promote regional economic development, enhance financial services to the real economy, address the needs concerning people's livelihood, and contribute to China's high-quality development.
SDGs
Our Moves
Respond to national strategies; support the real economy; improve people's livelihoods
Our Performance
Taxes: RMB32.894 billion; Total assets: RMB10,697.616 billion; Total loans: RMB5,848.424 billion.
5.1 Responding to National Strategies
National strategies guide the direction of economic development. The Bank follows national strategies closely to improve the overall competitiveness of China's financial sector as it promotes the development of international business, key regions, and the manufacturing industry.
5.1.1 Promoting the Development of International Business
The Bank continues to optimize its global network as it grasps opportunities brought by the opening-up policy and the market, dynamically meet the diverse needs of cross-border financial services, and continuously improve its cross-border, cross-industry and cross-market financial service capabilities, forming a comprehensive opening-up pattern.
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Improving the Layout of Overseas Institutions
As of the end of the Reporting Period, the Bank set up 23 overseas banking institutions and 69 overseas outlets in 18 countries and regions across five continents. Four of the overseas bankinginstitutions, including the Singapore Branch, Seoul Branch, Ho Chi Minh Branch and Prague
Branch, are located in the countries and regions along the Belt and Road.
Key Performance
The total assets of overseas banking institutions have exceeded RMB1.2 trillion
In November 2020, the first BoCom branch in Africa, Johannesburg Branch, officially opened in South Africa
The Toronto and Dubai (International Financial Center) branches are underway
Case: Among the first batch of upgraded CIPS direct participant banks to serve cross-border RMB business
In recent years, the Cross-border Interbank Payment System (CIPS), as an important financial infrastructure of China, has played an important role in conforming to financial opening up and promoting RMB internationalization. It is now a fast channel for RMB payment around the world.
In October 2020, BoCom Seoul RMB Clearing Bank CIPS Direct Participant Bank officially launched its operation. It became one of the first banking institutions in the world that transformed from a CIPS indirect participant bank to a CIPS direct participant bank. BoCom Seoul Branch successfully attracted 14 out of all 15 Korean-funded commercial banks in South Korea to become its indirect participant banks, with a coverage rate of 93.3%. It also ranked top in indirect participant bank expansion that month among all domestic CIPS direct participant banks.
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Serving the Belt and Road Initiative
Focusing on the "going global" plans of Chinese-funded enterprises and relying on the Belt and Road Initiative, the Bank is actively providing financial services to enterprises with medium-and long-term export financing requirements and enhancing product innovation. During the
Reporting Period, the Bank conducted cross-border RMB business contacts with 45 countries along the Belt and Road, with the total amount of RMB paid and received reaching 41.999 billion. In 13 countries along the Belt and Road, the Bank also implemented 18 medium- and long-term credit insurance financing projects.
Case: Meeting the Financial Needs of Quality Chinese-funded Enterprises in countries and regions along the Belt and Road
CGL Investment Holdings Corporation Limited (CGL), a joint venture established by CNIC
Corporation Limited and Nanshan Group overseas, engages in warehouse asset investments in
Eastern European countries along the Belt and Road. Since 2018, BoCom Luxembourg Branch has been serving CGL's fund needs. In 2020, BoCom Luxembourg Branch tightened CGL's M&A financing cooperation in the countries along the Belt and Road. The branch also declared and obtained three credit project approvals for the company throughout the year, with a credit line of about EUR200 million, providing continuous financial support for the company's development in the countries along the Belt and Road.
CGL's logistics warehouse park in Slovakia
Case: Implementing the Belt and Road Initiative by Supporting the Construction of
Vientiane-Vang Vieng Expressway
The China-Laos Vientiane-Vang Vieng Expressway (Vientiane-Vang Vieng Expressway) is a landmark cooperation project that connects the "From Landlocked to Land-linked Initiative" of
Laos' to China's Belt and Road Initiative. It is also a pilot project of Yunnan to actively respond to and implement the Belt and Road Initiative. This project, with its completion and official launch, ended the history of Laos without expressway. BoCom Yunnan Branch reviewed and approved
RMB1 billion fixed-asset loan for the Vientiane-Vang Vieng Expressway within one week after approval from China Development Bank, the leading bank of the syndicated loan. It is the second lending bank to complete review and approval. The branch has given full play to its leading role and effectively supported the formation of the syndicated loan for the Vientiane-Vang Vieng
Expressway.
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Promoting Cross-border Product Development
By strengthening international business product development, the Bank has facilitated better connection between the domestic market and the international market. It has also improved the cross-border, cross-industry and cross-market financial service level.
Measures to Strengthen the Infrastructure of Cross-border Products
Bringing services online | The "Easy" series of online international business products is developed to cover foreign currency deposit, trade financing, remittance, exchange trading and documents. The business processing time has been shortened from 3 to 5 days to as fast as 10 minutes. During the Reporting Period, the Bank handled over 150,000 transactions via the "Easy" series online products, covering a total of USD31.2 billion. |
Providing convenience | By docking with local "Single Window" systems of Shenzhen, Shanghai, Sichuan, Jiangsu, Fujian and Xiamen, as well as the nationally standardized "Single Window" system, it now supports the processing of cross-border exchange purchase, trade financing, etc. via "Single Window" for enterprises to effectively improve trade convenience. |
Cooperating with platforms |
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5.1.2 Facilitating Regional Economic Development
To provide strong financial support to the rapid economic development of key regions, BoCom has actively responded to key national strategies such as the integrated development of the Yangtze
River Delta, the development of the Guangdong-Hong Kong-Macao Greater Bay Area, and development of Hainan Free Trade Port and new free trade zones, facilitating the high-quality development of the regional economy and major branches.
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Facilitating Integration of the Yangtze River Delta by Leveraging the Shanghai Base
As the state-owned bank headquartered in Shanghai, the Bank strives to promote the integrated development of the Yangtze River Delta by providing featured financial products and services to the Yangtze River Delta as the "leading bank in the Yangtze River Delta". In 2020, the Bank officially established the Yangtze River Delta Integration Management Headquarters, and it became the first head office-level management department in a commercial bank facing three provinces and one municipality in the industry.
BoCom Chairman Ren Deqi Unveils the Nameplate for the Yangtze River Delta Integration
Management Headquarters
Measures of Serving the Integrated Development of the Yangtze River Delta
Strengthening inclusive sci-tech innovation service |
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Delta, the Bank adopted a list management system and provided follow-up services regularly. | |
Integrating regional internal services |
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Building a new bank- government cooperation model | Connected to government service platforms, embedded financial services in platform application, and acquired data assets from the government end to establish scenarios and build an ecosystem. |
Supporting development of key regions |
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Key Performance
As of the end of the Reporting Period,
the Bank launched 26 wealth management products with Yangtze River Delta theme, raising over RMB11 billion in regional funds
with the "one card for all" package, more than 130,000 Yangtze River Delta-themed credit cards have been issued to provide card holders with various consumer rights in all scenarios in theYangtze River Delta
Case: Facilitating the Construction of Shanghai International Shipping Center
Centering on the construction of Shanghai International Shipping Center, Bank of
Communications Financial Leasing Co., Ltd. strives to improve its shipping financial service capabilities. It has established a sound shipping leasing business system, and developed healthy cooperation relationships with a number of world-renowned shipping enterprises, shipbuilding enterprises and shipping service agencies led by China State Shipbuilding Corporation Limited
(CSSC).
In April 2020, Bank of Communications Financial Leasing Co., Ltd. and CSSC's Shanghai
Waigaoqiao Shipbuilding Co., Ltd., Guangzhou Shipyard International Company Limited and
China Shipbuilding Trading Co., Ltd. jointly signed the contract to build twelve 120,000-ton dual fuel oil tankers. With a total amount of over RMB4.5 billion, this project helps to promote the resumption of work and production of enterprises, boost the development of advanced manufacturing, and facilitate the development of Shanghai International Shipping Center.
Case: Customizing Financing Plan Templates to Achieve Integration of Inclusive Services
Through comprehensive utilization of various distributed energies such as distributed PV,
Pufeng New Energy Group provides green energy solutions for low-carbon, environmentally-friendly logistic warehousing facilities. However, confined by industry characteristics, Pufeng New
Energy Group faces three major challenges, including "dispersed projects", "small financing amount", and "repetitive reference check". These challenges have posed great difficulty for Pufeng
to obtain financial support from banks. To address the problems that Pufeng faces, BoCom has mobilized sub-branches in different cities and customized a cross-region inclusive project financing model. The model can be used as a template and copied in batches for the company to improve the efficiency of due diligence, capital collection and reporting.
Stakeholder Testimonial
"While achieving economy in project declaration, BoCom has solved our pain points. Our projects are currently advancing steadily. What's more, against the backdrop of the Yangtze RiverDelta strategy, we expect to develop more comprehensive and in-depth cooperation with BoCom focusing on the main themes of green development, energy conservation and environmental protection."
Pufeng New Energy Group
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Serving the Guangdong-Hong Kong-Macao Greater Bay Area
The Guangdong-Hong Kong-Macao Greater Bay Area is an important driver of high-quality economic development in China. It is also a vibrant world-class city cluster and an international sci-tech innovation center with global influence. Seizing market and policy opportunities, the Bank continues to support the development of the Greater Bay Area by providing a series of high-quality financial services for enterprises in the area.
Case: Facilitating the Listing of Innovation-oriented Pharmaceutical Enterprises in Hong
Kong
Akeso, Inc., a bio-pharmaceutical enterprise based in Guangdong Province, is committed to the research, development and manufacture of affordable innovative antibody drugs for patients around the world. Based on the company's continuous financing needs in its development, BoCom
International has provided an integrated service combining "equity investment + listing underwriting + bank credit + wealth management" for Akeso, helping it to get listed on The Stock
Exchange of Hong Kong. By doing so, it has contributed to the development of the Guangdong-
Hong Kong-Macao Greater Bay Area and high-quality development of strategic emerging industries.
Stakeholder Testimonial
"2020 was a crucial year for the development of Akeso, Inc. We'd like to thank BoCom
International for its recognition of Akeso, Inc. With a series of capital operation support from BoCom International, such as participating in our Pre-Initial Public Offering (pre-IPO) financing, serving as our IPO global coordinator, coordinating credit support and providing capital operation support, 2020 was a meaningful year for Akeso, Inc."
Dr. Xia Yu, Chairman of Akeso, Inc.
Case: Assisting the Issue of Overseas US dollar bonds for Guangzhou Metro
Guangzhou Metro Group Co., Ltd. ("Guangzhou Metro"), responsible for the important mission of building, running and managing the rail transit in Guangzhou and the Greater Bay Area, also engages in diversified industries centering on development of metro related resources. In
September 2020, BoCom Hong Kong Branch, as one of its joint global coordinators and joint bookkeepers, successfully assisted Guangzhou Metro in the withdrawal and issuance of its USD3 billion medium-term note plan. The successful issuance of bonds can not only help improve
Guangzhou Metro's yield curve of US dollar bonds, but also expand bond stock and improve liquidity. In the meantime, it has set a new benchmark as a Chinese-funded sovereign issuer, which will facilitate the financing of Chinese-funded enterprises in international capital markets and benefit the long-term development of the Guangdong-Hong Kong-Macao Greater Bay Area.
Case: "Sci-tech Innovation Vanguard Loan", Providing Credit Financing Service to Sci-tech Innovation Enterprises
As the first national innovation-oriented city, Shenzhen is abundant in sci-tech innovation enterprises. In May 2020, BoCom Shenzhen Branch established a Sci-Tech Innovation Center to explore professional product innovation, review and risk control system to improve its service capacity for sci-tech innovation enterprises. The "Sci-tech Innovation Vanguard Loan", launched by the Sci-Tech Innovation Center, rationally calculates the capital loan needs of the enterprises and determines its line of credit using one of its nine credit line determination methods, including determination based on subsidy, value of intellectual property, investment, tax, settlement, order, payroll, guarantee, and credit enhancement with house property mortgage.
For the past seven months since it was established, the Sci-Tech Innovation Center has reviewed and approved 144 applications covering RMB674 million, and granted RMB420 million in total. By providing convenient and fast loan services to Shenzhen-based sci-tech innovation enterprises, it has solved the urgent financing needs of enterprises and earned itself a high market reputation.
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Supporting the Development of Free Trade Zones
As the frontier for innovation and reform as well as a test field for opening up, free trade zones are key development regions of the country and main stages of financial innovation and reform. The
Bank, issuing opinions on supporting business development in free trade zones and free trade ports, has accelerated the cultivation of a financial service system with features of free trade zones and free trade ports.
Measures of Supporting the Development of Some Free Trade Zones
China (Guangxi) Pilot Free Trade Zone | Handled the first Non-Resident Account (NRA) RMB trade financing business in Nanning for enterprises in the free trade zone, with a business amount of RMB30 million. |
China (Yunnan) Pilot Free Trade Zone |
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Hainan Free Trade Port |
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China (Hebei) Pilot Free Trade Zone | The BoCom Caofeidian Free Trade Area Branch signed strategic cooperation agreements with a number of key enterprises in the free trade zone. |
Handled the first higher-standard trade investment facilitation pilot business for key enterprises in the free trade zone. | |
China (Jiangsu) Pilot Free Trade Zone |
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China (Fujian) Pilot Free Trade Zone | As one of the first contracting banks, the Bank launched the Xiamen international trade "Single Window" financial block chain platform and officially placed the "foreign exchange transfer payment scenario of ocean freight" into operation. |
5.1.3 Contributing to the Development of a Manufacturer of Quality
Manufacturing is the material foundation of the national economy and the main body of industries. The bank has actively responded to the national strategy of becoming "a manufacturer of quality", supported the financial needs of manufacturing enterprises, and promoted high-quality development of the manufacturing industry. By the end of 2020, BoCom's balance of loans to the manufacturing industry increased by 18.9% from the beginning of the year, of which medium- and long-term loans increased by 51.7%.
Measures to Support High-quality Development of Manufacturing Enterprises
Strengthening policy guidance | Issued the Opinions on Continuously Promoting the High-quality Development of the Manufacturing Industry with Financial Support, channeled more credit resources to the manufacturing industry, enhanced the credit supply capability in the manufacturing sector, and effectively strengthened NPL control to promote the high-quality development of the manufacturing industry. |
Enhancing | Actively met the financing needs of leading players in the advanced |
segmentation of the industry and customer groups | manufacturing industry and market segment leaders, cultivated and expanded customer groups with core competitiveness and growth potential, and continued to strengthen total management and structural adjustments for industries with overcapacity. |
Facilitating work and production resumption in the manufacturing industry | Actively launched the special loan, met the financial needs of enterprises on the list of key enterprises concerning pandemic prevention and control, leveraged the preferential loan policy of the People's Bank of China, and supported anti-pandemic enterprises, including manufacturing enterprises, through preferential interest rate loans. |
Case: Channeling Financial Resources to Promote the Development of the High-end
Manufacturing Industry
As an important research base of rare metal materials and industry technology development center in China, the Northwest Institute for Non-ferrous Metal Research has filled the many technological gaps in the research of new materials nationally. It plays a positive role in promoting the technology advancement of metal materials and the development of the industry. BoCom
Shaanxi Branch, following the economic policies and industrial layout of Shaanxi and the state, has increased support and financial resources to Northwest Institute for Non-ferrous Metal Research with one-stop financial services. At the same time, for its small and medium-sized tech companies in the incubation stage, BoCom Shaanxi Branch has partnered with Xi'an Science and Technology
Department to establish a three-way channel of "government-bank-enterprise" on site. Through means of government subsidies and preferential interest rates, the branch has continuously reduced the interest rates and burdens of small enterprises to assist them in achieving all-round development.
5.2 Supporting the Real Economy
The real economy is the foundation of the national economy and an important pillar for national prosperity. Adhering to the core mission of serving the real economy and fully carrying out the national strategies, the bank has combined the support of supply-side structural reform with business development and transformation to improve its service capability for the real economy, empowering high-quality financial development.
5.2.1 Using Technology to Empower Financial Development
With the development of information technology, the tide of digital transformation is sweeping across the whole society. The development of digital economy has been elevated to the grounds of national strategy. It will also become an important support for the transformation of industrial chain.
2020 served as the first year for the Bank to fully speed up digital transformation in all aspects. By increasing input of technology resources, it promoted the transformation of a digital bank and empowered high-quality business development to better serve the real economy.
Using Technology to Empower High-quality Business Development
Empowering customer service |
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Empowering ecosystem operation | The Intelligent Financial Services Platform launched about 20 industry internet steward products in fields of elderly care, pharmaceuticals, tourism, religion and parking. It has over 46,000 signed customers, and processed over RMB27 billion in collection. |
Empowering operation management |
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Empowering basic- level burden | Realized semi-automatic generation of pre-lending analysis reports for inclusive financial business, and the Optical Character |
alleviation | Recognition (OCR) identification function of value-added tax invoices was also launched to reduce the burden of deskwork. Intelligent Voice was embedded in telephone banking, mobile banking, hand-held terminal, corporate mobile banking and Zhiyitong. The Intelligent Voice of telephone banking handled an average of 66,600 calls daily, accounting for over 30% of the total incoming calls. |
External Honors
The Knowledge Graph Project was awarded the "IDC China Digital Transformation Awards
- Technology Application Scenario Innovation Award in the Chinese Financial Sector"
Innovation in New Technologies and New Architecture of Big Server Core Business won
the "Third Prize of the Shanghai Financial Innovation Award in 2019"
BoCom is certified by the Testing Maturity Model integration (TMMi) Foundation as a Level 5 TMMi, becoming the first commercial bank in China to independently complete the assessment for the certification
5.2.2 Facilitating the Transformation and Upgrading of Enterprises
Industrial transformation and upgrading are key to improving the quality and competitiveness of economic development. The Bank, actively implementing national industrial policies and the plan to "cut overcapacity", has accelerated its efforts to cut inefficient and outdated capacity bytransferring credit resources to moderately support the capacity upgrading of leading enterprises. It has also expanded the development opportunities in new fields and new business forms, thereby supporting the development of emerging industries.
Case: "Technological Transformation Loan" - Supporting Faster Development of Key
Projects
BoCom Sichuan Branch and Sichuan Provincial Economic and Information Department jointly signed the Special Cooperation Agreement on Providing Financial Support to "Resumption of Work and Production" and "5+1" Modern Industries to expand effective investment in industrial and technological transformation. Focusing on the construction of the "5+1" modern industrial system, a three-year Technological Transformation Loan totaling RMB50 billion was set up. For eligible key enterprises and projects, the Technological Transformation Loan has set up differentiated preferential support policies in loan pricing, access threshold, review & approval process, scale security, etc., so that major projects with investment in industrial and technological transformation can speed up its construction progress.
Case: Vigorously Supporting Strategic Emerging Industries and the Digital Industry
BoCom Anhui Branch has looked into Anhui's construction of the "emerging industry cluster district". With a focus on supplementing, strengthening and expanding the innovation-oriented modern industrial chain, the Bank actively provided credit support customers in the two major fields of "Chip Screen Machine Integration" and "Big Intelligent Mobile Cloud" by integrating corporate, international, investment banking and credit resources, organizing syndicated loans for key projects, and supporting the M&A and listing of quality enterprises. In recent years, BoCom Anhui Branch has participated in syndicated loans for key industrial construction projects of Anhui, providing
RMB1 billion to Visionox's sixth generation Active-matrix organic light-emitting diode
(AMOLED) production line and USD50 million to Reily Technology's 12-inch 19-nanometer memory wafer project in syndicated loan. It also actively supported EFORT Intelligent Equipment to get listed on the Science and Technology Innovation Board, serving strategic emerging industries and the digital industry.
Case: Actively Meeting the Financing Demand of the Information Technology Industry
300mm semiconductor silicon wafers are key and core technology in the strategic development of semiconductor integrated circuit industry of China. Solutions are urgently needed in this field, as it is key to supporting the technological upgrading of the whole industry and has great industrialization potential. BoCom Zhejiang Branch and BoCom Shanghai Branch jointly provided a RMB1 billion credit line to Sino Crystal (Jiaxing) Semiconductor Co., Ltd., an enterprise mainly engaged in the manufacturing of large silicon wafers. This move is to support new generation IT industries in the strategic emerging industries in the Yangtze River Delta, and promote the transformation and upgrading of China's information industry.
5.3 Improving People's Livelihoods
The livelihood of the people serves as a foundation for a harmonious society. By intensifying support to key projects in fields related to people's livelihoods, such as healthcare and education, and creating a number of brands to bring convenience to people, the Bank is able to improve enterprises and improve people's well-being.
5.3.1 Building Brands of Services for the Convenience of the People and Enterprises
"Government Online-Offline Shanghai" in government service and "Integrated Network
Management System" in city operation are two brands that Shanghai is currently vigorously building. These "two networks" not only provide rich government service scenarios for individuals and enterprises, but they are also the key for banks to innovate in scenario-based financial services.
The Bank has actively implemented the State Council's requirements for reforms of delegating power, and conformed to the digital transformation of government service platforms of Shanghai by setting up the "Big Data Application Office". The Office takes charge of digital financial practices of the whole Bank and participates in the digital governance reform of the Shanghai government, building the star brand of services for the convenience of the people known as "BoCom e-Services".
Five One-stop Services for the Convenience of the People
One-stop Service for Medical Payment | Supported by the "Sui Shen Ban" platform of the Shanghai Big Data Center, the Bank became the first to launch innovative services such as credit cards for settling medical bills, mobile credit card applications, and convenient digital credit product for medical needs. It provides |
"Credit No-barrier Payment" service for people participating in the medical insurance program of Shanghai, and prepays for individuals in their outpatient visits that can be paid back later, giving patients an opportunity to "see a doctor first and pay later". As of the end of December 2020, the Bank had 159,100 contracting customers, the largest number in the industry, accounting for over 85% in the Shanghai market. | |
One-stop Financing Service for Small and Micro Enterprises | Launched the online financing product "Shui Rong Tong" (Enterprise). Using the tax data of the enterprise as the main basis to determine the loan amount, the Bank grants a credit loan to the enterprise for daily turnover of business entities. |
One-stop Mortgage Registration Service | Cooperated with relevant authorities to allow customers to directly handle mortgage registration at the Bank, saving people's time with data. |
One-stop Electronic License Inspection Service | Actively worked with local regulators and data sources to strengthen the social application of "electronic licenses", and added the "Electronic License Inspection" function for corporate and individual customers in the banking business process, providing one-stop financial services for customers. |
One-stop Green Energy e Charging Service | Connected to "Sui Shen Ban" app, BoCom Shanghai Branch provides new energy vehicle owners with one-stop convenient services, including application for charging subsidy, issuance of subsidy, settlement of bills, query of fee payment history, etc., to meet the requirements of the Shanghai government on the use of new energy subsidy. |
BoCom opens the "Credit No-barrier Payment" service on the WeChat platform of "Internet
Hospital of the Sixth People's Hospital of Shanghai", assisting the hospital to achieve full coverage of service channels, including service windows, machines, consulting rooms and the
hospital's WeChat account
5.3.2 Using Intelligent Technology to Empower Education Management
Upholding the idea of "serving education with financial resources", the Bank has further leveraged its advantages and explored multi-level cooperation with education departments and schools of all types to contribute to the cultivation of elites that the society needs.
"Bank-University Connect" is an efficient fee management platform that BoCom provides to schools as well as education and training institutions. In June 2020, using BoCom Ningxia
Branch's "Bank-University Connect", China University of Mining and Technology Yinchuan
College successfully handled over 20,000 transactions in tuition and boarding fees from students, covering a total amount of RMB200 million. This in turn has significantly reduced costs for the
university and effectively improved financial reconciliation efficiency
6. Accelerating the Development of Inclusive Finance in the Tide of Digital
Transformation
Responding to the Trend of Sustainable Development
Inclusive finance is of great significance to creating jobs, eradicating poverty and promoting shared development. In 2020, taking inclusive finance as the "main battlefield" of the Group's digital transformation, BoCom provided targeted services to micro and small enterprises (MSEs),
as well as the three areas of agriculture, rural areas, and farmers. It expanded the scope, increased the supply, improved the quality and reduced the cost of inclusive finance, and continued to improve level of financial services, helping and vitalizing massive, small and medium-sized enterprises.
SDGs
Our Moves
Support MSEs; focus on agriculture, rural areas and farmers; improve financial services.
Our Performance
The balance of loans to inclusive MSEs recorded RMB260.753 billion, up 59.04%; the number of loan customers sat at 158,400, up 51.73%; the comprehensive financing cost of MSE customers went down by 0.96 percentage point; the average interest rate of loans to inclusive MSEs decreased by 0.5 percentage point; the balance of inclusive agriculture-related loans stood at RMB34.824 billion, up 21.97%. The Bank achieved the key regulatory indicators such as "two increases and two controls", inclusive agriculture-related business, and targeted poverty alleviation through finance.
6.1 Supporting MSEs
MSEs serve as an important foundation for national economic and social development. To help
MSEs overcome difficulties, financial institutions must act more proactively. Inclusive finance has been raised to a strategic height by BoCom. While improving the actual effect of services for inclusive MSEs in all aspects, the Bank has also served MSEs through digital inclusive finance and industrial chain finance to build core competitiveness in inclusive finance.
Improving Systems and Mechanisms for Inclusive Finance
Strengthening organization and leadership |
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Refining regulations | The Bank issued guidance documents such as the Opinions on Further Strengthening Financial Services for Micro and Small Enterprises (2020 Version) and the Opinions on Implementing Regulatory Requirements and Promoting Inclusive Financial Services 2020 (2020 Version). |
6.1.1 All-round Inclusive Service System
To activate the Bank's potential to serve MSEs, self-employed individuals and MSE owners, an all-round system from top to bottom consisting coordination of corporate business sectors, integration of retail business sectors, and comprehensive transformation of outlets has been established to serve inclusive customers.
Establishing an All-round Inclusive Service System
Measure | Content | Results |
Strengthening coordination of corporate business sectors | Continued to include inclusive business into its overall corporate business sector layout. With a focus on coordinating industrial chain finance, integrated services for the Group's MSE members and major | As of the end of the Reporting Period, MSEs loans of the Group recorded a net increase of RMB6.764 billion from the beginning of the year. |
scenario platforms, the Bank gave play to the role of corporate business sectors to drive the synergy of inclusive business. | ||
Enhancing integration of retail business sectors |
| As of the end of the Reporting Period, the coverage rate of customer managers for inclusive loans was 69%. |
Promoting comprehensive transformation of outlets | Included increase in inclusive MSE customers into the performance evaluation of outlet operations. | As of the end of the Reporting Period, over 95% of outlets were able to provide quality financial services to MSEs, and the coverage rate of service managers qualified for |
| inclusive finance (simplified version) reached 57%. | |
Strengthening resource allocation |
| Returned all policy benefit obtained from Level 2 RRR cut to business units, gave extra subsidiaries to those who over-fulfilled planned targets. The assessment weight of inclusive financial business was raised to 11%. |
6.1.2 Serving MSEs with Technologies
While the Bank has continued to expand the scope of financial services for MSEs, it has alsocontinued to reduce enterprises' financing cost through innovation in product and business model.
Measures of Serving MSEs with Technologies
Expanding scenarios to increase service coverage |
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Making innovations in model to reduce financing cost |
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Employing technologies to develop knock-out products |
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based on customer information and operation mode of key scenarios, allows the whole credit process to be modularized and recombined, and builds scenario customization product capability.
Key Performance
During the Reporting Period,
the balance increment brought by inclusive standard online products accounted for 78% of the increment of all-inclusive services.
Case: "MSEs Loan Express" Facilitating Online Financing for MSEs
To address the difficulties faced by MSEs under the pandemic and to continue expanding the coverage of financial services for MSEs, BoCom has actively connected with digital service platforms such as online local government service windows, industrial parks, communities and
CBDs, and creatively launched the "MSEs Loan Express" with online inclusive products, supporting MSEs to conveniently conduct financing online throughout the process.
The "MSEs Loan Express" mainly provides two key financing products for MSEs:
Online Shui Rong Tong: Based on corporate tax data, and features accurate portrait, broad services, speedy review and approval, high line of credit and low pricing, as of the end of the
Reporting Period, "Online Shui Rong Tong" issued RMB12.296 billion in loans and achieved business coverage in 36 branches.
Online Mortgage Loan: Allows real-time online self-help application. With speedy evaluation, low loan interest rates, and whole-process operation online, it meets the needs of "short-term, frequent and speedy" loans for MSEs. As of the end of the Reporting Period, the balance of the "Online Mortgage Loan" business increased by RMB73.704 billion from the beginning of the year.
Case: Launching "Easy Note Payment", the First "Note+ Cash" Mixed Payment Method
in China
When it comes to trade, MSEs are in a disadvantaged position as they face difficulties in the discounting and transfer of their note assets formed by the great number of notes they received.
"Easy Note Payment" by BoCom provides online note payment service to customers via supply chain platforms and business to business (B2B) e-commerce platforms, supporting customers in paying electronic commercial drafts after placing an order on those platforms. The note locking function and one-stop payment experience of it allow MSEs and private enterprises to safely and easily make better use of their note assets, providing enterprises with a more convenient payment experience. This is the Bank's new attempt to innovate in and upgrade the online note payment instruments.
Case: Cooperating with Platforms to Support the Development of Micro and Small
Foreign Trade Companies
Be Better International (Langfang) Ltd. ("Be Better") is the largest comprehensive foreign trade service provider in Hebei Province. With the whole-process recording service chain of its financial system, it provides foreign trade companies with one-stop services including receipt review, customs declaration and inspection, agency tax rebate, forex settlement, freight logistics, export insurance, overseas warehouses, etc. It currently serves some 300 small and medium-sized business entities. BoCom Hebei Branch, connecting with Be Better's financial system, have realized real-time information exchange between the two systems involving collection message, amount confirmation, exchange query, independent settlement, batch receipt push, etc. It has provided visual, speedy and efficient export exchange settlement service for small and medium-sized enterprises on the platform and intensified financial services for micro and small trade companies.
BoCom Dalian Branch visits MSEs to learn more about the customers and provide credit service
solutions
6.1.3 Supporting Industrial Chain Finance
The Bank has constantly explored new attempts in product innovation, channel connection, data application and resource guarantee to support the development of chain MSEs and improve the scale, quality and efficiency of industrial chain financial services. During the Reporting Period, the
Bank organized various activities, including "Doing Well in Resumption of Work and Production and Coordinated Development", the 2020 "Chain Finance" service campaign, and "The Month for
Helping Enterprises, Stabilizing Employment and Tackling Problems in Inclusive Industrial Chain
Business".
Measures of Supporting Industrial Chain Finance
Developing innovative business models |
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Connecting to third party platforms |
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Improving service quality and efficiency |
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department task force to implement major tasks.
Continued to optimize chain products and business processes to improve customer experience and lending efficiency for chain MSEs.
Case: Developing Financial Service Solutions Dedicated to the Construction Industry
Given that upstream suppliers in the building construction industry are large in number and are
widely distributed, it's difficult to verify their trade background and the communication cost is high.
To solve these issues, BoCom has connected with the system of China Construction Eighth
Engineering Division Corp., Ltd. (China Construction Eighth Engineering Division) to carry out electronic supply chain factoring business, handle batch financing applications online for upstream suppliers, exchange electronic trade information through the linked system of bank-enterprise, and optimize offline receivables confirmation to improve business handling efficiency. As a result, the factoring business handling process for a single transaction has been greatly improved with its shift from offline to online.
The "China Construction Eighth Engineering Division Electronic Supply Chain" project has served over 300 suppliers across China and deepened the overall cooperation with core enterprises.
It has also engaged in the practice of supporting the real economy development through finance, and assisting the industrial as well as supply chains of key industries to achieve stable development.
The financial service solutions dedicated to the construction industry has been copied and promoted to other industries.
Case: "BoCom Industry Connect" Solving Difficulties in Industrial Chain Financing
To promote the in-depth integrated development of industrial chain and supply chain, BoCom
Jiangxi Branch and the Department of Industry and Information Technology of Jiangxi Province have jointly released the "BoCom Industry Connect" 1+5 comprehensive financial service solutions.
Through featured services of "1 comprehensive financial service solution + 5 financial service systems", starting with links such as R&D, production, sales and procurement, "BoCom Industry
Connect" puts forth effort to resolve the pain points, difficulties and bottlenecks in the development of industrial chain, putting financial resources into enterprise and ensuring the safety and stability of the industrial chain and supply chain.
As of the end of December 2020, "BoCom Industry Connect" realized full coverage of chain financial services for customers on 14 key industrial chains across Jiangxi, provided RMB17.742 billion financing (including over RMB2.7 billion for MSEs), and developed 4 custom products for customers on 3 industrial chains.
BoCom Guangdong Branch hosts the "Link Enterprises and Serve Micro and Small Enterprises" financing meeting to answer financing questions on the spot and promote the development of the industrial chain of the construction industry
6.2 Paying Close Attention to the Development of Agriculture, Rural Areas and Farmers
Issues related to agriculture, rural areas and farmers are crucial to the nation's economic development. After winning the battle against poverty, the promotion of rural revitalization has become a new mission. The Bank has actively fulfilled its responsibilities as a large bank by increasing service support for tasks in fields of agriculture, rural areas and farmers. It has also continued to improve the scope and depth of financial services for agriculture, rural areas and farmers, and contributed to building a moderately prosperous society in all respects and promoting comprehensive rural revitalization.
Case: Extending Loans to Agriculture-related Industries Participating in Poverty
Alleviation to Bring a Good Spring Festival to Farmers
Shanxi Kangyu Tianyuan Agriculture Co., Ltd. is a leading enterprise in Shanxi Province that produces and processes sweet-waxy maize. In 2018, the company was recognized as a provincial-level leading enterprise for poverty alleviation. In early January 2020, based on the company's urgent need to pay for purchases, BoCom Shanxi Branch actively contacted a local guarantee company to address its problem of insufficient collaterals, and developed a special financing planfor the company. The branch granted RMB5 million working capital loan to the company within five working days, effectively solving the problem of insufficient short-term working capital and ensuring that 1,943 farmer households (including 646 poor households) received payment for their goods.
Case: Supporting the Construction of "Countryside Complexes" and New Countryside to Promote Urbanization
"Countryside complex", integrating circular agriculture, creative agriculture and farming experience, is a highlight measure laid out in the No. 1 Document of the Central Government for the Development of New Rural Industries. BoCom Gansu Branch supported the construction of
Qiyun Countryside Town of Lijiazhuang Countryside Complex in Yuzhong County, Lanzhou City,
Gansu Province. In 2020, the branch provided a total of RMB250 million in credit line to assist in the province's urbanization and new rural construction projects. The project not only can mobilize villagers in Lijiazhuang Village, Huocha Village, Shangpujia Village, Zhujiawan Village, etc. to change their production mode, overcome poverty and become better off, but can also attract poor people from other towns and villages in the county to engage in the project, thus helping poor households in the entire county to get rid of poverty.
Case: Providing Financial Services to Agriculture, Rural Areas and Farmers to Boost
Rural Revitalization
To increase financial service support for agriculture, rural areas and farmers, BoCom Hunan
Branch, along with the Department of Agriculture and Rural Affairs of Hunan Province, have signed a strategic cooperation agreement to provide financial services for rural areas. Focusing on the rural revitalization strategy, the two parties will establish a long-term, stable communication platform to continuously improve the scope and depth of financial services for agriculture, rural areas and farmers. Moreover, BoCom Hunan Branch has also signed a bank-enterprise strategic cooperation agreement with 10 national- and provincial-level key leaders in agriculture industrialization to deepen its cooperation with leading players and assist in rural revitalization.
6.3 Improving Financial Services
Quality service is one of the core competitive edges of an enterprise. Guided by a "customer-centered" philosophy and aiming to build the best banking brand with an omni-channel system, the
Bank has improved its service quality by continuously innovating in financial products and services, matching customer needs and more.
6.3.1 Accelerating Financial Innovation
For the convenience of customers, the Bank has continued to promote innovation in products and services and expanded intelligent service scenarios to better improve customer experience.
Case: Launching the First Fund Investment Consulting Service Platform to Provide
Professional Wealth Management Services
In December 2020, BoCom became the first national commercial bank in China to launch a fund investment consulting service platform for individual customers. The platform aims to better
solve the problems of "difficulty in allocation, selection and position adjustment" of investment
funds for individual customers and provide professional choices for personal wealth management.
Wholehearted Service: Three institutions, which are among the first to obtain the qualification to pilot the business, will be providing professional and wholehearted fund investment consulting services.
Comprehensive Market Selection of Funds: Provides investors with multi-scenario asset allocation policies and selects the best funds from the market.
Full Authorization: Engages professional institutions to provide convenient services and make position adjustment an easy task.
Accompany Throughout the Way: After investment, the platform works with fund investment consulting pilot institutions to provide companion service for quality assurance.
Case: Realizing "Paperless" Corporate Account Opening
Normally, to open an account, corporate customers are required to bring their business licenses in paper copy and seals to an outlet. Not only is this process tedious for customers, there's also a risk of fraudulent activities if the business license and seal are lost. In August 2020, BoCom initiatedthe synchronous application of "e-business license + e-seal" in corporate account business. The corporate customer will only need to scan the QR code to pull up the electronic business license and its authorization information. The Bank also realized "Electronic License Inspection" and one-key signing, reducing the Bank's processing time in account opening by more than 50%. In the meantime, "Electronic License Inspection" has effectively prevented the risk of forgery and replacement of paper business licenses and seals, greatly improving the quality and efficiency in account opening.
BoCom hosting the launch meeting of synchronous application of e-business licenses and e-seals
in account services
6.3.2 Protecting Customer Rights and Interests
Fully aware of the importance of protecting customer rights and interests, the Bank has strengthened system building in all aspects, actively responded to customer opinions, enhanced the protection of personal information privacy and security, and adopted various measures to protect the rights and interests of customers.
Consumer Protection Measures
Improving policies relating to consumer protection |
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Policy of Bank of Communications Co., Ltd. (2020 Version) and the Management Measures of Bank of Communications for Consumer Protection (2020 Version). | |
Improving complaint management work |
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Strengthening information security management |
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ensuring that customer approval is obtained before acquiring information, and that the information is stored and used according to agreement.
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Strengthening payment and settlement security |
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Handling of Customer Complaints in 2020
Indicator | 2020 |
Number of complaints handled | 227,000 |
Proportion of complaints handled | 100% |
Customer satisfaction with return visits | 98.02% |
Processing time of complaints (95559 Hotline, Credit Card Center 400 Hotline) | 7*24 manual service |
Note: Customer satisfaction with return visits: a measure of how satisfied customers are with the results, obtained through follow-up interviews of all customers who have filed complaints.
In August 2020, BoCom held the first "multi-party secure computation" technology related seminar in China to actively solve the issue of safety in data sharing and strengthen the protection
of customer privacy information
Following policy documents such as the Specification of Bank of Communications for Security Protection Work of Integrated Bank Lobby Services (2019 Version), BoCom has actively carried out fire prevention publicity and education campaigns and held security drills. In the biennial joint security evaluation organized by the Public Security Department and CBIRC, all BoCom outlets
have gone through six rounds of security evaluation and ended with top rankings
6.3.3 Conducting Public Education
The Bank held a series of diversified consumer protection publicity and education campaigns via various channels, and creatively launched the "Jiaojiao Explains Consumer Protection"
characteristic IP missionary image to make publicity and education campaigns more lively.
Key Performance
Held a total of 9,010 campaign events
distributed 10.767 million copies of publicity materials online and offline covered 156 million person-times
External honors
Awarded "Excellent Organizational Unit" in the March 15 Education and Awareness Week 2020 held by CBIRC and "Excellent Organizational Unit" in the "Financial Knowledge for Every
Family" campaign.
In the "Acquire Financial Knowledge to Protect Your Money" promotion video selection
activity organized by the People's Bank of China, five videos of BoCom were awarded, including
Identify Illegal Advertisements to Prevent Financial Traps, Learn Financial Knowledge to Protect
Your Money, Use Deposit Insurance System to Protect Your Deposits, Spread Financial Knowledge and Optimize Financial Services to Assist in Pandemic Prevention and Control Publicity, and
Protect Every Dream and Stop Illegal Financial Advertisements.
To ensure the security of customer funds and prevent financial risks, BoCom carried out a series of anti-fraud campaigns including "Payment Security Week" "June 29 National Anti-fraud
Awareness Day" and "Prevent Gambling and Protect Finance" in August
BoCom Qingdao Branch innovatively promoted the program Jiaojiao Explains Consumer
Protection: Financial Micro-class. During the Reporting Period, the program held 12 lectures and attracted over 150,000 viewers, with the highest number of viewers for a single lecture reaching
60,000
BoCom Beijing Branch, Xidan Sub-branch built an interactive experience space around the financial and life scenarios of customers, creating a trendy check-in space featuring "finance + life". The sub-branch became the first financial education demonstration base of its superior branch
Customer managers of BoCom Henan Branch live streaming consumer protection service
7. Facilitating Green Development
Responding to the Trend of Sustainable Development
Environmental protection will benefit future generations if it gets done today. It also serves as a fundamental requirement concerning the sustainable development of the Bank and even the society. In 2020, BoCom continued to practice the new development philosophy, took green development as the defining feature of its sustainable development, and pursued a win-win development path in economic development and ecological protection. Leveraging its strengths in main financial business to assist in ecological conservation and address climate change, the Bank transformed its operation mode to contribute to the battle against pollution and green development path to vitalize ecology and make people happier.
SDGs
Our Moves
Strength institutional guarantee; serve green economy; provide green services; adhere to green operations
Our performance
Outstanding green loans recorded RMB387.28 billion; the share of green loan customers stood at 99.34%; the share of outstanding green loans was 99.63%; and the E-banking business share was 98.04%.
7.1 Addressing Climate Change
Fully aware of the impact of climate change on business, BoCom conducted unified management of relevant topics by integrating them with the ESG governance architecture. The
Social Responsibility (ESG) and Consumer Protection Committee of the Board of Directors would periodically hold in-depth discussions on environmental risks and climate change issues, guiding and supervising ways in which finance can help to combat climate change.
Response Strategy
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Bank of Communications Co. Ltd. published this content on 26 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2021 08:58:01 UTC.
