Written by Li Yizhi / Translated by Mao Yuye

Beibu Gulf Cities: The Implementation of Uniform Bank Service Standards Is Underway

Written by Li Yizhi / Translated by Mao Yuye

The Overall Work Program for the Implementation of Uniform Banking Service Standards in Guangxi Beibu Gulf Economic Zone, launched by the People’s Government of Guangxi Zhuang Autonomous Region at the end of 2013, set eight objectives for implementing uniform banking service standards in Beibu Gulf Economic Zone (BGEZ) involving bank charges, remittance & collection and so on. The program has been actively echoed by a group of banks in the zone.

More specifically, the eight objectives involve bank service charges, remittance & collection, the establishment of bank branches, the after-sale service of insurance, the regional equity trading market, the platform for social credit system sharing, the bond-issuing platform for regional optimal direct debt financing and the management of microfinance companies.

What progress has been made over the past three years after the launch of the work program? And what visible benefit has been brought to the zone and the local people? Mr. Luo Jun, President of the Guangxi Beibu Gulf Bank, told the correspondent from the China-ASEAN Panorama in the exclusive interview in November 2016 about the new trends of the urban integration in the financial sector of Beibu Gulf Economic Zone.

Beibu Gulf Bank’s efforts in implementing the program

As of December 2015, five of the eight objectives have been reached — uniform standards have been implemented in the sectors of the bank service charges, collection & remittance, the after-sale service of insurance and regional equity trading market building and micro-fi nance in BGEZ.

Beibu Gulf Bank is among the first group of banks to implement the program. “We have reached three objectives — practicing uniform standards for the establishment of bank branches, bank service charges and collection & remittance.” Mr. Luo Jun said that there is still a lot to be improved despite the existing progress they have made in the establishment of bank branches.

“In terms of bank charges, we implement uniform charging standards in BGEZ to help most residents in the four cities save a lot.” It is learned that Beibu Gulf Bank has surrendered 100 million yuan of profit to the public since it implemented the uniform charging standards in 2010; when it comes to bank collection & remittance, we have integrated the banking system and offered uniform services in the BGEZ cities –Nanning, Beihai, Fangchenggang, and Qinzhou; and Beibu Gulf Bank set up branches in the four BGEZ cities, Xijiang Economic Belt and Zuojiang and Youjiang Old Revolutionary Base Areas.

Due to diversified inter-bank services, Beibu Gulf Bank’s liquidity cost is up from around five million yuan in 2010 to the latest 350 million yuan. Beibu Gulf Bank’s practicing uniform standards for fi nancial services in the BGEZ is the tips of the iceberg but an integral part of all benefits brought by Buibu Gulf Bank to the social public. Obviously, we can see how much of the reduction in cash fl ow cost is in the BGEZ.

Mr. Luo Jun held that BGEZ will deepen the urban integration by forging a uniform payment system. On the one hand, BGEZ reached an agreement with Guangxi Financial Electronic Settlement Service Center to introduce a uniform collection & payment platform in Guangxi. Luo Jun said that Beibu Gulf Bank will use the platform as its payment gateway, make the gateway available for online payment by other banks and equip it with new services such as interbank cash concentration; on the other hand, the collection & payment platform will add new payment means such as QR payment and Internet payment in abid to build a uniform, convenient, safe and effi cient uniform fi nancial service system in BGEZ.

BGEZ’s uniform standards for bank services benefi t the society

The implementation of uniform standards for bank services in BGEZ has gradually broken down the barriers hindering the financial resource flow and allocation by establishing a uniform financial platform for capital, currency, foreign exchange, insurance and futures market, by allocating capital, human resources and information more effectively, and by creating an uniform and integrated production factors market to boost the economic and social integration in Guangxi.

The implementation of BGEZ’s uniform standards for bank services has really changed local life a lot. As fi nancial institutions in BGEZ cancelled charging standards that vary from city to city, local residents no longer need to pay inter-city charges when they use bank services like exchange, remittance, transfer, deposit & withdrawal and collection in other Beibu Gulf cities.

Banks in BGEZ have so far surrendered a large amount of money to the social public, thus lowering residents’ cost for fi nancial services and benefi ting residents in BGEZ a lot. Ms. Hong Yuping, a staff working for a private-owned international trade company in Beihai, who has many business partners in Nanning, said that she didn’t need to carry a great amount of cash when going on business in Nanning for a thrift of handling charges since the uniform standards for bank services were implemented.

BGEZ’s uniform standards for bank services have brought in reality the unifi ed, easy, safe and effi cient financial system strategically linking regional currency market and capital market. It is a big charm for BGEZ’s potential investors because this advantage is sure to downsize the operating cost. Mr. Luo held that the essence of fi nancial service is to serve the interest of real economy. Further efforts should be still made to provide competitive industries with better fi nancial services through joint efforts by all fi nancial institutions in BGEZ, to level up BGEZ’s competiveness and to attract more investors for the zone.