ICBC steps up assistance for elderly care in the wake of Covid-19

published on May 13 this year.

Said Forbes: “On the financial front, ICBC remained in the top spot for the eighth straight year with more than $4.3 trillion in assets.”

ICBC New Zealand chief executive Karen Hou said the bank was “very happy to achieve the branch licence, especially in the special circumstances of the Covid-19 period”.

“It brings us additional capacity, greater access to funding and allows us to leverage greater resources to further support our customers, as well as the New Zealand economy,” she said.

“We do this by ensuring we understand the clients’ unique needs, being a trusted finance partner for the long term and proactively creating valueadded solutions.”

ICBC was the first Chinese bank to establish banking operations in New Zealand. In 2013, its subsidiary, ICBC New Zealand, was registered to provide banking services. The parent bank itself is now the 27th registered bank in New Zealand.

Hou said ICBC NZ sees itself as a bridge in the trade between New Zealand and China. “The Covid-19 outbreak has been impacting trade globally. ICBC’s global network across 47 countries and regions can help to gradually restore and further grow international trade. Apart from providing conventional lending and trade finance facilities to local exporters/retailers, ICBC is also able to help boost trading volume and provide marketing channels through its physical branch network in China and a global online platform.”

Added Brash: “China is already New Zealand’s largest export market, and largest source of imports. It is only appropriate that China’s largest bank is here contributing to further mutually beneficial growth.”

ICBC NZ is proactively working with aged care customers to understand the Covid-19 impact on their business operations and residents.

Elderly citizens worldwide have been most at risk from the Covid-19 virus, which has imposed additional costs on rest homes and retirement villages to keep them safe.

ICBC’s response to the changing market environment caused by the Covid-19 response has resulted in additional financial support for aged care customers — such as refreshed facility structures — to not only ensure their smooth operation but also to provide adequate funding resources to support business recovery in the long run.

The bank has also taken action to support such customers in having access to personal protective equipment.

ICBC’s vision is to become the “most respected Chinese bank in New Zealand, recognised as an economic, financial and cultural bridge between China and NZ with a strong emphasis on corporate social responsibility”.

In the six years since ICBC opened its doors in New Zealand the bank has grown to post over $2 billion in total assets with total loan volume of $1.6b, and around 70 employees.

Brash said the strong backing from the bank’s parent company had enabled it to make a growing contribution to New Zealand’s development over the six years in which it has been operating from its base in Auckland.

“We’ve provided mortgage finance for many hundreds of home-owners, and contributed to funding a great many projects in both the private sector and the public sector,” he said.

“In the private sector, we have particularly contributed substantial funds for the construction of apartment buildings — in that way helping to ease the housing situation which

has been such a problem in Auckland in recent years — and a wide range of industries vital to the nation’s growth and prosperity.

“In the public sector, we have helped fund infrastructure and provided financial support for universities and local government.”

An injection of NZ$84 million working capital to the branch has been arranged from ICBC head office, which will enlarge its lending capacity.

Said Hou: “The Reserve Bank’s granting of the branch licence is a strong encouragement to us and the working capital injection demonstrates ICBC Group’s confidence in the New Zealand market.”

“The dual licence, additional working capital and liquidity will put ICBC in the position to do our best to support local business development as well as the New Zealand economic recovery,” she explained.

“We will also promote and facilitate the development of trade and business activities between New Zealand and China by providing wholesale banking activities to New Zealand and Chinese customers.”

Like other banks operating as an essential service during the level 4 and level 3 lockdown periods, ICBC NZ followed NZ Government requirements and provided a healthy and safe working environment for all employees working on site.

A thorough Business Continuity Plan (BCP) was formulated and implemented during the lockdown period.

It resulted in:

1. All employees staying healthy and safe during the pandemic;

2. All of the bank’s core businesses running smoothly;

3. The bank providing customers with considerate, attentive services, which has been highly appreciated by the customers.

ICBC NZ has a long history of supporting the New Zealand infrastructure sector with a broad spectrum of exposures such as roads, port, education, energy and telecommunications.

“We believe infrastructure is a sector with great opportunities for Kiwis and will underpin NZ’s future economic development,” said Hou. “The bank will continue to support existing infrastructure and new projects in New Zealand.”

July: ICBC NZ signed RMB Strategic Alliance MoU with ANZ, Westpac, BNZ and ASB.

October: ICBC and China Central Depository & Cleaning Co. Ltd (CCDC) co-hosted ‘China Bond Market’ seminar in Auckland. November: Launched ICBC e-commerce platform “E-Mall” in New Zealand.

February: Joined Bulk Electronic Clearing System for transfers between New Zealand banks. December: Launched an updated version of its mobile banking application.

July: ICBC NZ received further US$60m capital injection from ICBC head office.

July: Joined Paymark debit card payment network for providing debit card payment services in NZ.

June: ICBC NZ received another US$60m capital injection from ICBC head office.

November: ICBC’s application to open a New Zealand branch is approved by its Chinese regulator CBIRC.

May: The Reserve Bank granted ICBC a licence to operate directly as a branch in New Zealand.