OREANDA-NEWS. August 15, 2011. Vice Chairman, President and Deputy Secretary of the CPC Committee of Agricultural Bank of China Limited (ABC), arranged work for the second half of 2011 at the interim working conference of ABC. Mr. Zhang Yun required enhancing basic management, accelerating operational transition and promoting quality and sustainable development of the bank. Mr. Che Yingxin, Deputy Secretary of the CPC Committee of ABC and Chairman of the Board of Supervisors, hosted the conference, reported the press-centre of ABC.

Mr. Zhang Yun pointed out that in the first half of the year, ABC had delivered favorable business performance. It started the reversal of declining speed of deposits growth by focusing on deposits and maintaining shares. Its assets quality withstood tests of complicated environment thanks to restructuring and risk control. Its urban and rural businesses were becoming more and more competitive due to reform and increasing vitality. Its income structure was significantly improved after channel expansion and transformation, and the inner dynamic was increased after the foundation was solidified.

Mr. Zhang Yun required the staffs to be well aware of challenges confronting its business and operation, the complicated external business environment, the fragile core operation indicators, difficult risk control and arduous basic management.As for new situations and problems in operation, ABC should fully accomplish the objectives and tasks for 2011 by consolidating advantages and transforming its business.

In terms of sticking to the bottom-line, Mr. Zhang Yun required ABC to stick to the risk control of platform loans, enhance the management of real estate loans by implementing the "Three Measures and One Guidelines". He also asked ABC to prepare for Basel II implementation while proactively controlling market risk and liquidity risk and paying close attention to operational risk, IT risk and reputational risk.

Regarding advantage consolidation, Mr. Zhang Yun imposed the following requirements: First, to refine the business of Sannong (agriculture, rural areas and farmers) and to expand the advantages at county level. Within the head responsibility system of branches at all levels, ABC shall issue more Sannong loans to fully accomplish the loan plan for 2011, make sure that such loans increase faster than the average level of ABC and complete the plan of loans to farmers. Second, to boost channel building and promote the advantages of branches and network. ABC shall accelerate the upgrading and function improvement of outlets while bringing new features of e-channels.

Third, to strengthen basic financial services by consolidating and expanding the advantages of retail business. ABC shall focus its efforts on deposits by enhancing the comprehensive marketing of retail products, accelerating the establishment and improvement of the VIP customer marketing and maintaining system consisting of private banking, wealth management centers, financial management centers and VIP rooms. Fourth, to strengthen the pricing management and enhance the interest margin advantage. ABC shall enhance the liability and cost management, and loan pricing management to prohibit the declining of the interest rate of new legal person loans in principle. It shall also improve the monitoring, reporting and assessment of pricing.

As for business transformation, Mr. Zhang Yun set the following requirements: First, to increase competitiveness in high-end market by developing quality customers. In particular, ABC shall keep building the three-tier core customer base by carrying out special marketing activities. Second, to upgrade the operation of loan portfolios by accelerating credit structure adjustment. ABC shall keep controlling the total amount and tempo of loan granting and further optimize the credit input structure. It shall also promote the innovation of capital business and give full play to the interaction between assets and liabilities.

Third, to provide to customers systematic and market-oriented financial services by carrying out comprehensive operation. ABC shall strive to develop cross-market businesses, and standardize wealth management business to give full play to its leading function. Besides, it shall further improve the operation of financial markets business. Fourth, to vigorously develop international business and enhance the interaction between domestic and overseas markets.