Minsheng Bank strengthens risk management to target SME segment

China Minsheng Bank has been undergoing strategic transformations in the areas of customer segmentation, its business model and culture. The information will be valuable in helping The Asian Banker to assess the bank’s ability to withstand the competition, and the impact of economic forces in the foreseeable future.

Gao Yingxin stepped into the role of chairman in 2020. Emmanuel Daniel was impressed by the efforts made by Gao and his team to strengthen the bank’s balance sheet, internal control, and risk management.

Yuan Guijun, executive vice president of the bank, talked about the bank’s achievements in risk management, including the construction of its new-generation smart risk control system. Daniel was interested to learn that the efforts to strengthen the bank’s risk management also took into account the infrastructure required for the bank to develop its finance business in the small and medium-sized enterprises (SME) segment.

In 2022, small business loans increased by 136%, each with an average value of less than RMB 150,000 ($21,428).

The Asian Banker notes the strength of the bank in its SME business development—not an easy accomplishment since serving the SME sector requires strong credit and operational risk management skills.

Looking forward, Gao emphasised the bank’s return to the fundamentals of banking. China Minsheng Bank, originally set up to serve the private sector, is focusing on building its supply chain finance network and ecosystem in order to become the dominant bank in the SME space through financial technology and product innovation.

Before joining the bank, Gao had served as the vice chairman and chief executive of Bank of China Hong Kong (BoCHK) and held other senior roles within BoC Group in corporate and transaction banking, and risk management. The Asian Banker believes Gao has brought a unique perspective as an outsider to the bank to rejuvenate its culture, as well as critical experience and skills to lead its future development.