From January 18th, 2009, Bank of Communications provincial branches were renamed with the province (autonomous region or municipality) names from previously the capital city names. As a major step taken by Bank of Communications to improve the structure of corporate governance, this is also conducive to furthering the integrated province-wide management and better supporting the development of the national economy and social undertakings in the locality.
During the initial period of Bank of Communications restructured, a set of rules requiring setup and management of branches and subsidiaries by economic areas were set forth according to the actual conditions then, and played a positive role for increasing the market shares and enhancing the competitiveness. However, with the continuous deepening of the reform of the financial regime in China, the incompatibility between such a mode of management on one hand and Bank of Communications’s reform & development and the evolving financial monitoring system on the other became increasingly prominent. Therefore, in October 2004, Bank of Communications made the decision to make some adjustments: a new mode was finalized, i.e., Integrated Province-wide Management, for better management, adaptability to monitoring, prevention of risks, further development and higher efficiency. After four years of implementation, the Integrated Province-wide Management, now a basic mode of management at Bank of Communications, has taken root in the hearts of the people and shown some initial effects, such as increasing business competitiveness, more capability of risk management and obviously higher efficiency of resource allocation.
Only 29 provincial (autonomous region and municipality) branch headquarters were involved in this renaming of Bank of Communications provincial branches, while directly-affiliated branches, branches under provincial ones and Bank of Communications outlets in the capital cities would not be renamed. The renaming is as follows: Bank of Communications Co., Ltd. Hangzhou Branch to Bank of Communications Co., Ltd. Zhejiang Provincial Branch, Bank of Communications Zhejiang Provincial Branch in short. Correspondingly, branches in such four cities as Beijing, Shanghai, Tianjin and Chongqing were also followed suit: Bank of Communications Co., Ltd. Beijing Branch to Bank of Communications Co., Ltd. Beijing City Branch, or Bank of Communications Beijing City Branch in short. After the renaming, functions and scope of management remain unchanged, and no stratum of management or managerial person is added.