China, People's Republic of: Innovations in Credit Risk Management and Financial Service Capabilities for Rural Commercial Banks in Tianjin Municipality

Sovereign Project | 46159-001 Status: Closed

Summary

The TA will support an assessment of IT system needs and preparation of a project plan related to the data needs for rural credit risks and risk management, and product development that will also fully integrate remote rural branches. The TA will also help Tianjin Rural Commercial Bank (TRCB) establish an overall rural finance business strategy to promote rural lending and expand product offerings. An institutionalization mechanism will be in place to accumulate rural finance knowledge, support ongoing staff training programs in TRCB and ultimately disseminate lessons learned to other RCBs in Tianjin Municipality and across PRC.

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Project Name Innovations in Credit Risk Management and Financial Service Capabilities for Rural Commercial Banks in Tianjin Municipality
Project Number 46159-001
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8496-PRC: Innovations in Credit Risk Management and Financial Service Capabilities for Rural Commercial Banks in Tianjin Municipality
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Public sector management - Economic affairs management

Gender Equity and Mainstreaming
Description The TA will support an assessment of IT system needs and preparation of a project plan related to the data needs for rural credit risks and risk management, and product development that will also fully integrate remote rural branches. The TA will also help Tianjin Rural Commercial Bank (TRCB) establish an overall rural finance business strategy to promote rural lending and expand product offerings. An institutionalization mechanism will be in place to accumulate rural finance knowledge, support ongoing staff training programs in TRCB and ultimately disseminate lessons learned to other RCBs in Tianjin Municipality and across PRC.
Project Rationale and Linkage to Country/Regional Strategy
Impact Improved growth prospects for the rural sector providing for development more in line with urban areas.

Project Outcome

Description of Outcome Increased access of rural residents and small businesses in Tianjin Municipality to finance through expanded offerings of micro and SME financial products
Progress Toward Outcome The project was completed.
Implementation Progress
Description of Project Outputs

International best practice assessment and preparation of new processes and an alternative strategy regarding rural credits and financial products for TRCB

Development of a systems' plan to support rural financial services

Institutionalization and dissemination of an effective rural credit risk appraisal, financial product strategy and risk management system

Status of Implementation Progress (Outputs, Activities, and Issues) A final report was prepared by TRCB and the project team and accepted by ADB. Training was held in September 2015 for units and branches of TRCB to cover new proposed products, services and processes. A final conference was held in September 2015 hosted at Renmin University of China and in cooperation with the Chinese Bankers Association to present the results from the project and discuss overall access to finance issues of SMEs. A study tour was planned to occur by year-end 2015 but did not occur as counterpart hosts could not be confirmed and study tour team members to participate were not finalized.
Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The EA and IA were both closely involved in discussing and reviewing project design.
During Project Implementation The EA and IA have been regularly consulted regarding project progress. Regular missions have occurred to meet with the EA and IA.

Business Opportunities

Consulting Services The TA will engage one international consultant for a total of 5 person months, and two national consultants for a total of 14 person months. A software firm with a 5 person-month equivalent will be recruited under CQS (Lump Sum) for assessment and provision of a software and hardware evaluation and upgrade plan for the rural sector to enable completion of the data requirements for the risk management system and improved overall data management.

Responsible Staff

Responsible ADB Officer Giannetto, Giacomo G.
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
Tianjin Finance Bureau
Foreign Economy Division
No. 4 Qufu Road, Heping District
Tianjin, People's Rep of China

Timetable

Concept Clearance 26 Sep 2013
Fact Finding 23 Jul 2013 to 23 Jul 2013
MRM -
Approval 30 Oct 2013
Last Review Mission -
Last PDS Update 30 Mar 2016

TA 8496-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Oct 2013 14 Feb 2014 14 Feb 2014 31 Mar 2015 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 50,000.00 0.00 0.00 0.00 450,000.00 30 Oct 2013 347,570.13

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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