Bank Industry: Bank of China
Created in 1912 in Beijing by Sun Yat Sen
Internationalisation since 1929
China mainland, Hong-Kong, Macao, Taïwan and 37 countries
1. Bank Industry: Bank of China
Joseph Pategou
International Strategy and Influence
joseph.pategou@skema.edu
2. 28/08/2016
Bank Industry: Bank of China – Joseph Pategou
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SUMMARY
I. Presentation
II. Competitors in China and in the world
III. The Demand and Suppliers
IV. Key Success Factors
Conclusion
Sources
Appendix
4. Presentation
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Mario Pianta is Full Professor of Economic Policy at the University of Urbino
Created in 1912 in Beijing by Sun Yat Sen
Internationalisation since 1929
China mainland, Hong-Kong, Macao,
Taïwan and 37 countries
Bank Industry: Bank of China – Joseph Pategou
5. Presentation
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Mario Pianta is Full Professor of Economic Policy at the University of Urbino
305 675 employees in 2013
$ 105 billion of income in 2013
5th bank in the world and 4th in China
(in terms of assets)
Bank Industry: Bank of China – Joseph Pategou
6. Competitors in China and in the World
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Bank Industry: Bank of China – Joseph Pategou
7. Competitors in China
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Mario Pianta is Full Professor of Economic Policy at the University of Urbino
The « Big four »:
The others:
Bank Industry: Bank of China – Joseph Pategou
8. Competitors in the World
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Mario Pianta is Full Professor of Economic Policy at the University of Urbino
Bank Industry: Bank of China – Joseph Pategou
9. The Demand and Suppliers
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Bank Industry: Bank of China – Joseph Pategou
10. The Demand
Company
Example
o Facilities for oil
o Kazakhstan, Russia and Venezuela
o Cost: US$60 billion
Concentrated
Individuals
Population
o China and outside
Fragmented
Countries
Example
o Nakilat Phase III LNG project sponsored by Qatar Gas Transport
o Cost: US$949 million
o Bank of China provided US$200 million
Concentrated
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Bank Industry: Bank of China – Joseph Pategou
11. Suppliers
Interest Income
From corporate loans, retail banking
Fragmented
Interest Paid
Deposits and liabilities
Fragmented
Fee-Based Businesses
credit cards, agency, investment banking
Fragmented
Shareholders
Concentrated
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Bank Industry: Bank of China – Joseph Pategou
13. Key Success Factors
Relationship with the State, the Party
and the Public Institutions
Adaptation to a changing regulation
and diversification of activities
Network and capitalization
Internationalization
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Bank Industry: Bank of China – Joseph Pategou
18. Sources
Links:
1. http://www.glassdoor.com/Reviews/Bank-of-China-Reviews-E6335.htm
2. http://en.wikipedia.org/wiki/Banking_in_China
3. http://internationalbanker.com/banking/chinese-banking-strengths-weaknesses/
4. http://www.boc.cn/en/invester/ir3/200812/P020081212711170303484.pdf
5. http://www.forbes.com/sites/kenrapoza/2014/03/30/china-weakness-no-match-for-worlds-largest-bank/
6. http://www.relbanks.com/worlds-top-banks/market-cap
7. Negotiating with Chinese Lenders
8. China’s banking industry
Papers:
1. Michael F. Martin - China’s Banking System: Issues for Congress - Specialist in Asian Affairs February 20, 2012
2. BANK OF CHINA LIMITED - 2007 Annual Report
3. Delivering Growth and Excellence Annual Report 2010 - Bank of China Limited
4. Comparing the Performance of Chinese Banks: A Principal Component Approach (Victor Shih, Qi Zhang, Mingxing
Liu - 08/2004)
5. INTERNATIONAL JOURNAL OF BUSINESS, 19(1), 2014 ISSN: 1083-4346 - An Efficiency Comparison of Chinese Banks: A
Multidimensional Analysis - Jennifer Fooa and Dorota Witkowskab (very recommended)
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Bank Industry: Bank of China – Joseph Pategou
