Chinese Policy Bank ADBC Enters Cooperative Agreement with Alibaba’s Online Lender MYBank

229

Agricultural Development Bank of China (ADBC) and Alibaba-backed MYBank have launched what is reportedly the first comprehensive strategic partnership between a policy bank and a digital bank in China.

ADBC and MYBank recently executed a strategic cooperative agreement according to a report published on 16 September by Securities Daily.

Under the Agreement the two parties will build upon their pre-existing cooperation in the areas of transfer loans and micro and small direct-loans, expanding both the scope and area of these operations.

The two banks will also deepen cooperation in areas including rural village finance, industrial finance, joint risk-control and fintech, with the goal of further easing the problem of financing being expensive and difficult for Chinese micro and small-enterprises.

The agreement is believed to mark the first instance of comprehensive strategic cooperation between a Chinese policy bank and an online lender.

ADBC is one of three policy banks in China established with the approval of the State Council in 1994, alongside the Export and Import Bank of China (Exim) and China Development Bank (CDB).

Each of these banks focuses on a particular area of financing, with ADBC’s remit being rural development, Exim specialising in trade financing and international investment, and CDB dedicated to infrastructure, energy and transit.

A year ago MY­Bank became the first fi­nan­cial in­sti­tu­tion to team up with a new mi­cro-loan body launched in the Xiong’an New Dis­trict by ADBC.

ADBC launched the Mi­cro and Small-En­ter­prise On­line Ser­vice Ad­min­is­tra­tive Cen­ter (小微企业线上服务管理中心) in the Xiong’an New Area in August 2019, with the goal of “help­ing more mi­cro and small en­ter­prises re­solve their lend­ing dif­fi­cul­ties.”

MY­Bank was the first fi­nan­cial in­sti­tu­tion that ADBC brought on board as a co­op­er­a­tive part­ner ac­cord­ing to a re­port from Shang­hai Se­cu­ri­ties Jour­nal, given the on­line bank’s track record as a fin­tech-dri­ven provider of lend­ing ser­vices to MSE’s. 

Related stories

MY­Bank Teams up with Chi­nese Pol­icy Bank to Boost Fi­nan­cial In­clu­sion in Xiong’an

MY­Bank Pro­vides In­ter­est Free Loans to 360,000 Ven­dors in Wuhan as City Emerges from Lock­down

100 Chi­nese Banks Sign up for MY­bank’s “Non-con­tact” Mi­cro-Loan Plan to Help Mit­i­gate Coro­n­avirus Im­pacts

Jack Ma’s MY­Bank Grabs Green­light for First Share Cap­i­tal In­crease

LEAVE A REPLY

Please enter your comment!
Please enter your name here