From September 14 to September 16, 2017, Frankfurt School of Finance & Management participated in the first China County and Township Financial Summit Forum in Changxing County as one of only two foreign institutions. Together with the International Finance Cooperation (IFC) of the World Bank, the business school was invited as a co-donor. At the event, the 1,519 Village and Township Banks in China commemorated the tenth anniversary of the China Village and Township Bank Development Forum. Around 600 representatives from 240 financial institutions, together with high ranking officials from People’s Bank of China, China Banking Regulatory Commission, Chinese Ministry of Finance, Ministry of Agriculture, China Academy of Social Sciences, and many other institutions participated in the forum.
At the three-day event, Fatma Dirkes, Head of the International Advisory Services (IAS) at Frankfurt School, represented the institution together with the IAS China-Team. In her speech on the United Nations Millennium and Sustainable Development Goals she stressed their high relevance for Frankfurt School’s global activities. Fatma Dirkes described how the institution is committed to improving financial markets and increasing access to financial services for low-income populations by providing consulting and training services. Following, she signed a technical assistance contract with the China County and Town Level Financial Institution Development Committee on behalf of Frankfurt School.
With around 44 percent of the population living in less developed rural regions in China, agricultural modernization and rural development are decisive for economic prosperity, social stability, and the achievement of sustainable development goals in China. These rely to a large extent on a sound and well-functioning rural financial system. However, most of rural financial institutions in China are relatively small and weak in organizational, financial, and technological capacity. Within the two-year contract, Frankfurt School will provide 15 village and township banks in China with comprehensive trainings on mean squared error (MSE) lending technologies. With the expectation of a long-term cooperation, both organisations envisage a joint initiative in building a co-branded training academy responsible for building the capacity of one million bankers serving the rural finance sector in China.
About the China County and Town Level Financial Institution Development Committee
China County and Town Level Financial Institution Development Committee was established in 2015. It is committed to providing and fostering communication channels and cooperation among village and township banks in China, to exploring and boosting sustainable operational models and business innovation of rural banks as well as carrying out personnel training and culture building for these financial institutions. The Committee operates under the China Society for Promoting County and Town Economy, which was founded in 1992, organized by the China Academy of Social Sciences, also responsible of its operational management. The China Society for Promoting County and Town Economy is approved and registered as a national social association by the Ministry of Civil Affairs of People's Republic of China. It promotes regional horizontal economic and technological exchange and cooperation to boost the economic and financial development and prosperity of counties and towns by building up a platform for economic exchange.