China Development

China Development Bank

Executive Summary

China Development Bank is one of the top banks in China. The operational goal of this bank was to provide loans for all categories involved in the development of China. Categories such as provide loan for medium to long-term and large-scale infrastructure as well as large-scale Development and construction projects that were dependable with government development policies. The bank has embraced the “go global” strategy and for that the company is considering to invest in the oil producing company of Brazil. In addition to this, China Development Bank had also done the collaboration of Petrobras with Sinopec. This deal will not only be beneficial for China Development Bank, but also for China.

Introduction

China Development Bank was established in 1994. The bank was initially funded with 50 billion Yen. This fund was raised by the Chinese ministry of finance (MOF). China Development Bank was the first bank to initiate largest policy bank in China. The operational goal of this bank was to provide loans for all categories involved in the development of China. Categories such as providing loan for medium to long-term and large-scale infrastructure as well as large-scale Development and construction projects that were consistent with government development policies. China Development Bank also started to lend money to the agriculture development of China. In short, China Development Bank provides financings for projects within China but also involve the development of the market economy mechanism and build up such key elements to support it. China Development Bank was on the 5th ranked all over China.

Situational Analysis

After the financial crises of 1997, it forced China Development Bank to restructure its lending policy in order to make its loan payment structure more secure and minimize the risk. Moreover, China Development Bank was also initiated to the investment in global in order to diversify the risk.

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