One of Singapore's largest bank, the Oversea-Chinese Banking Corp Ltd (OCBC Bank), has forged deeper ties with its associate Bank of Ningbo by signing a 10-year strategic cooperation agreement.
According to a report from the Straits Times, OCBC Bank eyes to tap the growth potential in huge banking markets of Hong Kong, Macau, and Guangdong.
"This initiative accelerates the efforts of both banks in growing their businesses and serving the onshore and offshore needs of customers in China's Greater Bay Area and South-east Asia," the bank was quoted saying.
In a separate report from the Business Times, it was stated that OCBC Bank and the Bank of Ningbo will utilise each other's strengths and networks to develop business opportunities and cater to the customers in the Greater Bay Area and Southeast Asia.
To recall, the Greater Bay Area refers to an economic development project involving Guangdong, Hong Kong and Macau. This economic project is pegged to rival bay areas such as those in Los Angeles, New York and Tokyo Bay.
The collaboration between OCBC Bank and Bank of Ningbo will involve areas such as corporate banking, investment banking, wealth management. The deal will also touch on product development and capital market solutions.
Under the deal, the Singapore-based bank will provide US$5 million as training grant to buttress training projects involving Bank of Ningbo employees.
"Over the last 10 years, OCBC has supported Bank of Ningbo's growth through a structured training and development programme that covered areas such as consumer banking, treasury and risk management," OCBC noted.
To recall, OCBC first acquired 12.2 percent stake in Ningbo Commercial Bank in 2006. Almost eight years later, OCBC raised its stake in the financial institution - renamed Bank of Ningbo, from around 15 percent to 20 percent, the maximum allowed in China.