Press Releases

IFC Supports Nanjing City Commerical Bank’s Strategic Alliance with BNP Paribas

In Beijing
Wenqin Zhu

Phone: + (8610) 6505 8686 x8060


In Hong Kong

Desmond Dodd

Phone: + (852) 2509 8183


In Washington DC

Rita Jupe

Phone: +1 (202) 458 8967


Beijing, October 12, 2005—The International Finance Corporation, the private sector arm of the World Bank Group, today announced support for Nanjing City Commercial Bank’s strategic partnership with BNP Paribas. BNP Paribas is taking a 19.2 percent shareholding in NCCB. To accommodate the new investment, IFC has sold to BNP Paribas 10 percent of its initial 15 percent investment in NCCB. IFC will remain a shareholder with 5.0 percent equity in NCCB.

“The new strategic partnership will help Nanjing City Commercial Bank achieve higher standards through transfer of knowledge and technology from BNP Paribas,” said Karin Finkelston, IFC Associate Director. “IFC’s support for NCCB remains strong and we are pleased to be able to continue supporting NCCB’s continued success as a shareholder.”

IFC invested in NCCB in 2001, before the sector was open to investment by foreign banks.  With the support of PBOC and CBRC, as well as the Nanjing City Government, IFC worked closely with the other NCCB shareholders and management to strengthen the bank’s institutional capacity. Following significant changes and improvements in areas such as risk management, today’s transaction puts NCCB on course to develop more rapidly through the transfer of the technology and management skills BNP Paribas has committed to bring as an investor. BNP Paribas and NCCB will establish close cooperation in operational areas, including retail banking, fixed-income, consumer finance, wealth management, risk management, and information technology. The partnership will help further develop and enhance NCCB’s franchise and core competitiveness as well as capture new business opportunities in the fast evolving Chinese banking market.

Since 1985, IFC has invested more than $2 billion in 100 private sector companies in China. IFC has invested more than $200 million in six commercial banks as part of strategy to support the development of China’s domestic financial markets.

IFC promotes sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Its 178 member countries provide its share capital and collectively determine its policies.

From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.