Temasek unit, BOC jointly buy 27 community banks in China
Temasek Holdings-owned Fullerton Financial Holdings and Bank of China (BOC) have jointly acquired 27 community banks from China Construction Bank for 1.6 billion yuan (S$320.3 million) - a record in terms of the number of community banks being transferred in a single transaction.
"Together with our acquisition in 2017 of 15 community banks from China Development Bank, it further demonstrates (Fullerton's) continuing commitment and ability to use our successful SME and micro-financing business models to help in the development of community banking in China," Fullerton chief executive Gan Chee Yen said.
Fullerton has been jointly invested in the building of community banks in China with BOC since 2011.
This joint partnership leverages BOC's branding and capital resources, together with Fullerton's small and medium-sized enterprise (SME) and micro-financing business models to produce a brand of community banks under the BOC Fullerton Community Bank (BOCF) brand.
The BOCF distribution network is the largest community banking group in China. As at June, it comprised about 100 community banks with 119 branches and 297 rural financing service stations, serving customers across 19 provinces .
Yesterday's acquisition will result in the group's expansion to 128 community banks.
BOCF supports the causes of China's "three rural" policy - referring to the three issues in rural China that the government wants to work on: agriculture, rural communities and farmers.
It also supports small micro-enterprises by providing practical rural financing solutions and innovating with new products and services.
This in turn helps the acceleration of the economic development of counties and villages.
- THE STRAITS TIMES
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