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China Minsheng Banking Corp Ltd allied with Dresdner Bank Wednesday to cooperate in the intermediary banking sector.
Under a deal on cash management, Minsheng and Dresdner will provide advisory services to both multinational and domestic companies on investment in bonds, interbank lending and account receivables.
"More alliances should be formed between home-grown banks and overseas counter-parts, especially in the intermediary sector," said Jing Shuping, Minsheng chairman, who claimed the alliance was a win-win deal.
Foreign lenders need the vast client bases owned by Chinese banks while the latter can share the rich experience of their overseas counterparts, Jing explained.
Now, around 80 percent of Chinese bank revenues comes from interest income, compared with less than 40 percent in leading banks in the world.
This is not the first time that Minsheng has tied up with over-seas lenders, however. It formed alliances with 32 foreign banks last year to cooperate in providing services, such as foreign currency-denominated credit cards, foreign exchange and bill settlement and syndicated loans.
The Shanghai-listed lender reported its profits reached 891.54 million yuan (US$107.4 million) last year, up 245.17 million yuan year-on-year.
(eastday.com April 17, 2003)
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