Fulfill their

social responsibilities

Fulfill theirPart SixFulfill Social

Responsibility

二 ○ ○ 八 年 报

From Mid-Jan to early-Feb, heavy snow hit large

parts in South and Northwest China. The CBRC

responded quickly by acquainting itself with the

situation of the disaster areas and mobilizing

funding for reconstruction projects. It issued the

Urgent Notice of China Banking Regulatory Commission on Calling for Financial Support for Reconstruction in Snow-Stricken Areas

and the Urgent Notice of China Banking Regulatory Commission on Calling for Financial Support for Spring Cultivation and Its Preparation in order to urge banking

institutions to fulfill their social responsibilities

and take prompt actions to increase funds

supply and financial services for snow-stricken

provinces.

After the "May 12" Wenchuan Earthquake, the

CBRC took on timely measures and mobilized

all available resources within the CBRC and all

banking institutions to support the earthquake

relief, restore financial orders and prepare for

post-earthquake reconstruction.

1. Comprehensive efforts for disaster relief and reconstruction

A steering team was immediately set up in the

CBRC after the Wenchuan Earthquake and a

command center was established in the CBRC

Sichuan office. The team was responsible for

evaluating losses, mapping out restoration plans

and supportive financial policies, and it took

charge of guiding and coordinating earthquake

relief efforts of the CBRC offices in Sichuan,

Shaanxi and Gansu provinces. The team also

called on the CBRC headquarters and local

offices as well as the banking institutions to

make donations to the disaster-stricken areas.

According to estimates, the CBRC nation-

wide made a donation of RMB5.16 million. The

China Community Party members in the CBRC

donated RMB23.7 million, and nation-wide

banking institutions contributed over RMB900

million to disaster areas. The team urged banking

institutions to gauge the losses and earmark credit

funds for restoring production and evaluating

post-earthquake credit losses. To accomplish the

tasks assigned by the National Post-Earthquake

Restoration and Planning Group Office, the CBRC

played a proactive role in the financial restoration

led by the NDRC as a indispensable member of

the joint taskforce consisting of PBOC, CBRC,

CSRC and CIRC.

I. Contribute to disaster relief and reconstruction

This chapter is dedicated to Ms. ZHAI Hong, Mr. RUAN Jixiang and Mr. WANG Xing, who were our dear colleagues from CBRC Sichuan Office Mianyang Branch but fell victims to the "May 12" Wenchuan Earthquake. All CBRC staff are in deep sadness of commemorating them and encouraged by their spirit to be more committed to banking supervision in China.

Fulfill Social Responsibility96

Annual Report 2008

2. Maintain basic banking services

In a bid to facilitate financial services in the earthquake-

stricken areas,the CBRC quickly issued specified

supervisory policies, i.e. the Urgent Notice of China Banking Regulatory Commission on Calling for Financial Support for Earthquake Relief, the Notice of China Banking Regulatory Commission on Exempting the Charges for Inter-bank Transfer to the Special Disaster-Relief Donation Accounts, and the Urgent Notice of China Banking Regulatory Commission on Write-off of Bad Loans Caused by the Sichuan Earthquake. The

CBRC, jointly with PBOC, issued the Urgent Notice of People's Bank of China and China Banking Regulatory Commission on Providing Financial Support for the Earthquake-stricken Area, requiring supervisory

authorities at all levels to cooperate with banking institutions

in the earthquake-stricken areas and to spare no effort for

the rescue and relief work in line with the instructions from

the central government.

The CBRC urged banks to launch emergency plans and

directed in the earthquake-stricken areas to strive to meet

people’s basic financial needs. The CBRC also set out

special approval procedures for fund withdrawals. Through

these efforts, essential banking services got ensured in

areas where the structures remained secure.

Chase the Sun of TomorrowDedicated to children surviving the Wenchuan Earthquake

Don’t be scared, don’t be scared, kids,Your teacher’s at your back,When the quake strikes,You can find a shield in his opened arms,The teacher becomes an immortal statue.

Don’t weep and don’t weep, kids,Your classmates are your close friends,When the misfortune befalls,They are taken to the heaven,From where they wish you could see the sunshine.

Be strong and be strong, kidsYour parents are your forever family,When the earth shakes apart,They slip and never get up,But you are their hope.

Refrain:Wipe away your tears,Stand up tall,For the hopes and dreams,Go and chase the sun of tomorrow.

(BY Chen Yuannian from CBRC)

Fulfill Social Responsibility 97

3. Shore up reconstruction in disaster-stricken areas

The CBRC conducted post-earthquake loss

evaluation of banking institutions in Sichuan,

Shaanxi and Gansu provinces to obtain adequate

information and data to formulate supportive

supervisory policies.

The CBRC also mapped out the Restoration Plans for Banking Operations in Wenchuan Earthquake-stricken Areas (Sichuan, Shaanxi and Gansu) 2008-2010, drafted Financing Plan for Post-Disaster Recovery of Banking Institutions, and actively worked with other

government agencies to draw up the special

planning for market service system.

The CBRC cooperated with other government

agencies to formulate post-earthquake

reconstruction policies and measures, such as

the Opinions of the State Council on Providing Support to Post-Earthquake Reconstruction

and the Opinions of People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission on Providing Financial Support and Services to Post-Earthquake Reconstruction. Besides,

the CBRC raised suggestions to refine post-

earthquake reconstruction measures drafted by

other government agencies.

To assist in resuming local production as early as

possible, the CBRC urged banking institutions to

provide stronger funding support to the disaster-

stricken areas, create a green-light channel for

making loans and ensure normal operations of the

payment system while effectively controlling risks .

For instance, a banking syndicate formed by CCB,

CDB and ICBC concluded an agreement with

Sichuan provincial government on the Syndicate

Loan Program in Support of Reconstruction of the

Earthquake-stricken Areas with a total credit of

RMB12.6 billion earmarked for the reconstruction

purpose.

II. Serve the Olympics

Providing high quality financial services for the

success of the Beijing Olympic Games was a

challenge faced by the banking sector and also

a key task for the CBRC. In 2008, the CBRC

issued the Notice of China Banking Regulatory Commission on Calling for Better Services by Commercial Banks During the Olympics,

the Notice of China Banking Regulatory

Commission on Investigating the Financial Services Provided by Commercial Banks for the Olympics, the Circular of China Banking Regulatory Commission on the Problems in Financial Services during the Past Few Sessions of Olympic Games, the Notice of China Banking Regulatory Commission on Risk Warning for Cash out of Credit Card

Fulfill Social Responsibility98

Annual Report 2008

III. Advance consumer education

In 2008, the CBRC expanded efforts in public

education and promoted risk awareness of

financial investors by utilizing the public education

service center and public education websites. The

CBRC also provided information and knowledge

about online banking and personal wealth

management to financial consumers through

public education service websites and issued a

series of documents including the Notice of China Banking Regulatory Commission on Issues Relevant to Further Regulating Commercial Banks’ Wealth Management Business and

the Notice of China Banking Regulatory Commission on Risk Warning for Cash out

of Credit Card to provide risk warnings. More

financial consulting services to the public were

offered in the way that inquiries of around 2,000

person/times and six consumer-targeted seminars

were hosted in the Education Service Center at

the CBRC building. The CBRC promoted public

understanding of complicated financial products

and raised their awareness of “buyer-beware”

through financial education staged on programs

including CCTV News and Focus. In addition, the

CBRC has offered guidance to commercial banks

in disseminating financial knowledge with the aid

of multi-media facilities and worked with financial

websites to further promote public education.

and the Notice of China Banking Regulatory Commission on Guarding Against the Risk of Fake Card Fraud to urge commercial banks

to improve service quality and ensure financial

security during the Olympics.

The successful operation of multilingual service

centers, the disability-friendly facilities, foreign

exchange counters and ATMs run by commercial

banks during the Olympics and Paralympics

fully met the needs of different financial service

requirements and demonstrated the quality

service of China’s banking sector.

In addition, the CBRC worked closely with

authorities concerned during the investigation

of several foreign credit card fraud cases.

Altogether 20 suspected criminals were arrested

and 807 fake international credit cards were

seized, involving a cash value of RMB3.14 million.

The CBRC effectively curbed the

occurrence of fake foreign bank

card fraud by various measures

including alerting international

card organizations to monitor card

transactions and assisting overseas

card-issuing banks in the disposition

of fake card transactions.

Fulfill Social Responsibility 99

IV. Promote the “Financial Knowledge to the Countryside” campaign

In 2008, the CBRC Youth League Committee

organized a nation-wide campaign calling

on young people in the CBRC and banking

institutions to disseminate “bringing financial

knowledge to the countryside (community)” for

the improvement of financial literacy of rural

residents and financial environment of rural

areas. The campaign, featuring more than 2,000

financial consulting seminars, responded to

around 4 million inquiries of farmers from all over

the country, visited 500,000 rural households,

distributed 6 million pamphlets and 1.2 million

copies of financial books and CDs. It proved very

effective and was widely welcomed particularly by

rural and community residents.

Left: The launch ceremony of the “Bringing Financial Knowledge to the Countryside” campaign by banking institutions in Yanbian, Jilin Province.

Right: The “Bringing Financial Knowledge to the Countryside” campaign in Pingluo County, Shizuishan City, launched by the CBRC Ningxia Office.

Fulfill Social Responsibility100

Annual Report 2008

In 2008, the CBRC contributed to the development

of social welfare in education and public health by

various forms including organizing donations and

care-giving activities. In January 2008, the CBRC

donated computers to schools located in poor

areas in the western part of China including Aletai

(Xinjiang Autonomous Region), Liuzhou (Guangxi

Autonomous Region) and Anshun (Guizhou

V. Support charitable undertakings and development of poor areas

Province). Statistics showed that, in the past few

years, Aletai received the tuition assistance and

item donation worthy of RMB 8 million offered

by banking institutions under the guidance of

CBRC. In addition, the CBRC’s local offices were

also actively engaged in supporting charitable

undertakings and contributed their effort tothe

development of poor areas.

Left: The CBRC Guizhou Office supported education and construction of new countryside in Anshun City and southern Guizhou.

Right: The CBRC Shanxi Office made donation to Maoxian County.

Fulfill Social Responsibility 101

VI. Urge banking institutions to fulfill social responsibilities

Since the Opinions of China Banking Regulatory Commission on Strengthening Social Responsibilities of Banking Institutions

was issued at the end of 2007, the CBRC

has actively encouraged and urged banking

institutions to assume their social responsibilities.

With the joint efforts of the CBRC and banking

institutions, the banking sector has developed a

strong sense of social responsibility and further

improved its behavior as a responsible corporate

citizen.

1. Strengthen corporate social responsibility management

Banking institutions had, in view of their individual

situations, actively promoted the establishment of

the corporate social responsibility management

system, drafted detailed action plans, set up

and appointed a dedicated function to execute

corporate social responsibility and explored

approaches to manage corporate social

responsibility on a routine basis.

2. Quick and conscientious response to significant events

In 2008, banking institutions notably lived up

to their social responsibilities in the face of

Wenchuan Earthquake and the Beijing Olympic

Games. Soon after the occurrence of the

earthquake, emergency measures were quickly

taken to ensure that bank operations were

resumed in the shortest time. In hard-hit areas,

such as Dujiangyan and Mianzhu cities in Sichuan

Province, “tent banks” and “auto banks” were set

up with simplified process to meet emergency

financial needs of local people. The Green-light

Credit Channel was also created to expedite

approval of loans intended for the disaster relief.

According to the Urgent Notice on Calling for Financial Support for Earthquake Relief, credit

lines were augmented in a bid to support the

enterprises and individuals in disaster areas to

resume production.

Left: A temporary “tent bank” was put up by a Dujiangyan Rural Cooperative in Sichuan Province.

Right: Villagers deposited money and applied for micro loans at a tent bank.

Fulfill Social Responsibility102

Annual Report 2008

Banking institutions were actively engaged in

the preparation for the Beijing Olympic Games

since 2005. In order to accommodate the needs

for financial services, concrete measures were

devised, ranging from expanding input, increasing

physical outlets, extending service hours,

increasing the number of ATMs and enhancing

information systems security to introducing

the Olympic-featured products, which greatly

contributed the final success of the Olympics.

3. Promote green credit

In pursuant to the requirements of the State

Council and the CBRC, banking institutions

demonstrated stronger commitment to

implementation of the green credit business

philosophy, namely, to limit credit lending to high

energy-consumption, high-pollution industries

and industries of excessive capacity and to

support environmental-friendly, energy-saving

and emission-seducing industries. Environmental-

friendliness is placed as a vital factor in credit

approval process. Environmental-friendly

requirements were specified and environmental

safety has become a mandate throughout the

entire cycle of loan management. A series of

green credit products were introduced to clean

energy industries, such as nuclear power and

hydroelectric power generation. Priority is given to

energy-saving projects, such as wind power and

solar power generation projects. Meanwhile, efforts

were made to strengthen internal management and

build up “green office” by implementing technical

overhauls and introducing advanced facilities

to achieve efficient use of water, electricity and

energy.

In November 2008, the China Industrial Bank

(CIB) announced its adoption of the Equator

Principles and became China’s first equator bank.

Other banking institutions also actively studied the

viability of adopting the Equator Principles and were

committed to full evaluation of impact on society

and environment in offering project financing and

the implementation of green credit loans.

Left: An auto bank outlet run by a commercial bank in Chengdu, Sichuan Province.

Right: The auto bank is providing services to villagers.

Fulfill Social Responsibility 103