S
hanghai, China, April 22, 2004—
The International Finance Corporation, the private sector arm of the World Bank Group, today participated in the launch of the Shanghai International Banking and Finance Institute. SIBFI will help introduce international banking best practices to China, and help accelerate the modernization of the Chinese banking industry and promote its integration into the global financial system. IFC will provide both equity and debt financing for SIBFI.
SIBFI is a joint venture between Bankakademie of Germany and Shanghai University of Finance and Economics. The German development finance institution, DEG, is also contributing to project’s financing. SIBFI will offer educational and training courses, international and domestic seminars and conferences, applied research and various other events which are intended to help improve the networking relationship among banking and finance practitioners and academics.
“SIBFI is a relatively small investment for IFC, but has a special significance. Not only does it represent IFC’s first investment in China’s education sector, it also reflects IFC’s continued effort to assist in the development and modernization of China’s financial sector,” said Javed Hamid, IFC director for East Asia and the Pacific. Jyrki Koskelo, IFC director for Global Financial Markets, added, “IFC’s investment in SIBFI is built on our firm belief that modernization and development of China’s financial sector depends critically on an increase in the pool of well-trained local professionals. The institute will have a major impact by transferring international best practice know-how to the sector.”
IFC is already a major investor in China’s financial sector. Investments span banking, insurance, asset management and recovery, and mortgage finance. This project encourages SIBFI to develop into a self-sustaining and commercially viable business enterprise. SIBFI aims to provide world-class training and education to Chinese finance professionals, primarily commercial bankers. There is strong and rapidly growing needs in China for acquiring international knowledge and best practices in banking and finance.
Professor Udo Steffens, CEO of Bankakademie, said, “Our commitment to SIBFI represents Bankakademie’s strategy of international expansion. This is the first time we are investing directly in the education business outside Germany. The program anticipates increasing demand for world class educational standards in banking and finance in China. Banks and financial institutions require focused education and training to operate in a growing national and global competitive environment.”
Professor Shuhai Cong, vice president of Shanghai University of Finance and Economics, said, “The establishment of SIBFI symbolizes the birth of a Chinese training institution for senior financial professionals. It marks a new era in the field of continuing education in China. China’s financial sector is developing rapidly, and Shanghai is becoming an international financial center. SIBFI’s mission is to echo this trend and support the needs of senior financial professionals.”
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.7 billion for its own account and $6.6 billion held for participants in loan syndications.
