OCBC Bank and Bank of Ningbo Deepen Partnership with a 10-Year Strategic Cooperation Agreement
Singapore, 22 August 2017 – OCBC Bank has entered into a 10-year strategic cooperation agreement with its associate company Bank of Ningbo (BON) to deepen collaboration across a broad range of business areas, intensify knowledge sharing and scale up staff training.
This initiative accelerates the efforts of both banks in growing their businesses and serving the onshore and offshore needs of customers in China’s Greater Bay Area and Southeast Asia. It builds on a decade of partnership between the two since OCBC Bank first acquired a 12.2% equity holding in Ningbo Commercial Bank in 2006. OCBC Bank subsequently raised its stake in the renamed Bank of Ningbo to 20% - the maximum allowed – in 2014.
Under the agreement, OCBC Bank and BON will leverage each other’s strengths, networks and platforms, to realise business opportunities in areas such as corporate banking, treasury, investment banking and wealth management. The collaboration extends to product development, the enhancement of product offerings, supporting customers with funding and capital market solutions and growing the customer base.
To promote greater understanding of the opportunities, risks and regulations in the Greater Bay area, the agreement provides for knowledge sharing by way of regular dialogue, training and employee secondment.
OCBC Bank will provide US$5 million as a training grant to support training initiatives involving BON employees over the next ten years. BON in turn will bear expenses incurred by OCBC Bank’s employees when they participate in training programmes at BON.
Over the last 10 years, OCBC Bank has supported BON’s growth through a structured training and development programme that covered areas such as consumer banking, treasury, risk management, information technology and internal audit. This has contributed to the strong expansion of BON’s retail banking and cross-border lending businesses, and the development of its treasury and risk management capabilities. At the same time, OCBC Bank has benefited from BON’s local market knowledge and insights, and is increasingly helping BON’s customers from Ningbo and other Chinese cities with their overseas financing needs.
The signing of the strategic cooperation agreement was held in Ningbo on 17 August 2017. Board members and senior management staff from OCBC Bank and BON were present.