Rabobank Group

United Rural Cooperative Bank of Hangzhou (URCB) was created in 2005 following the merger of 23 Hangzhou-based rural credit cooperatives. Rabobank acquired a 10 percent stake in URCB in 2006 and has since helped support its transformation into an economically viable financial institution with the potential to build a leading position in rural clients and small and medium-sized businesses.

Originally a rural-based cooperative bank, URCB now has a commercial banking licence, giving it the freedom to expand beyond its native city and province.

Hangzhou’s metamorphosis from a rural to an urban area has also affected URCB. The bank aims to expand its branch network into the inner city – most branches are currently on Hangzhou’s outskirts – while also returning to its agricultural roots by setting up village outlets and investing in rural cooperative banks outside Hangzhou and Zhejiang.

Rabo Development experts have supported URCB with credit risk management – such as developing the credit process, a credit manual and credit scoring systems – as well as assisting in branch management, layout and implementing diverse branch formats.

The focus is now more on strengthening commercial ties between Rabobank and URCB. Our leasing company De Lage Landen, for example, is developing products under the URCB label and training the Chinese bank in selling them. Private bank Sarasin has also stepped in, as has our trade & credit finance department, which set up a credit line for URCB.

As China’s economy advances rapidly, Rabo Development is helping URCB raise its commercial game and so compete with the major Chinese and Western banks that are ever more active in the world’s most populous nation.