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.
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