WASHINGTON, D.C., Dec. 19—The International Finance Corporation's (IFC) in coordination with the Government of Switzerland will support institution building and training for the China Minsheng Banking Corporation, which is the first and only nation-wide commercial bank that is majority owned by the private sector in China.
Funding for this assignment, to be provided through one of the Swiss-IFC trust funds, will enable the Beijing-based China Minsheng Bank to embark on a two-year, comprehensive program of technical assistance aimed at key areas such as strategic management, internal control and risk management, corporate finance, treasury and foreign exchange, human resources and information technology. The objective is to help create a profitable, service-oriented, modern bank which will be a `best practices model' in China's commercial banking industry.
Supervised by IFC, this $700,000 grant_the largest technical assistance initiative for an IFC capital markets project to date_will be implemented by the Union Bank of Switzerland (UBS). UBS's recent merger with the Swiss Banking Corporation will create the United Bank of Switzerland, which will be the world's largest bank in terms of assets and the second largest in terms of assets under management.
The program is being launched December 19 in Beijing with an intensive management seminar for top executives of China Minsheng Bank who will develop a strategic vision and direction for the bank. The executive seminar will be followed by a series of training activities, such as corporate seminars for the next tier of management; consultancies on China Minsheng Bank's operations; corporate finance training in Beijing for middle management; and on-the-job training at various locations.
Mr. Jemal-ud-din Kassum, IFC Vice President for Investment Operations said, "This project is a good example of IFC's commitment to developing the technical and institutional skills of Chinese banks."
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries. The trust funds program, which is supported by 17 donors (including the Government of Switzerland), is IFC's principal technical assistance vehicle.
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