Question 1

What is Bank of Taizhou?

Accepted Answer

Bank of Taizhou (TZB; Chinese: 台州银行) is a city commercial bank headquartered in Taizhou, Zhejiang Province, China. It specializes in small and medium-sized enterprise (SME) finance and microfinance, serving micro and small businesses that typically face challenges accessing traditional bank loans.

With approximately 11,500 employees and total assets exceeding RMB 200 billion, Bank of Taizhou is notable for being China's first non-state-controlled city commercial bank. The bank operates primarily in Zhejiang Province and has expanded nationwide through its subsidiary Village and Township Banks (VTBs).

Question 2

When was Bank of Taizhou founded?

Accepted Answer

Bank of Taizhou was officially founded on March 13, 2002, through the amalgamation of eight local urban credit unions with a registered capital of RMB 300 million. The bank was originally named Taizhou City Commercial Bank and was officially renamed Bank of Taizhou on September 9, 2010.

Together with its predecessor organization, Yinzuo Urban Credit Union (established in 1988), Bank of Taizhou has a continuous operational history dating back to the late 1980s. This heritage reflects the bank's deep roots in serving the local Taizhou community and its evolution alongside China's economic reforms.

Question 3

Where is Bank of Taizhou headquartered?

Accepted Answer

Bank of Taizhou is headquartered at No. 92, Nanguan Avenue, Luqiao District, Taizhou City, Zhejiang Province, China. The bank's headquarters can also be found at 699 Shifu Avenue, Taizhou, reflecting its strong presence in the city.

Taizhou, a coastal city in East China's Zhejiang Province, is known for its vibrant private economy with nearly 740,000 market entities, over 95% of which are privately-owned SMEs. This economic environment shaped the bank's specialized focus on small business lending.

Question 4

Where does Bank of Taizhou operate?

Accepted Answer

Bank of Taizhou operates primarily throughout Zhejiang Province, with branches located in all districts of the province. As of 2021, the bank operated 299 branch locations across Zhejiang, covering all cities of sub-provincial significance and nine urban districts.

The bank has expanded its reach nationwide through seven subsidiary Village and Township Banks (VTBs) located in Shenzhen Futian, Beijing Shunyi, Jiangxi Ganzhou, Chongqing Yubei, Chongqing Qianjiang, Zhejiang Lishui Jingning, and Zhejiang Taizhou Sanmen. These subsidiaries enable Bank of Taizhou to serve more distant locations while maintaining its community banking model.

Question 5

What services does Bank of Taizhou offer?

Accepted Answer

Bank of Taizhou offers a comprehensive range of banking services with a particular focus on inclusive finance for small and micro enterprises. Core services include deposit accounts, personal and business loans, settlement services, financing solutions, wealth management, and investment products.

The bank specializes in microfinance and SME lending, with approximately 99% of its clients borrowing less than RMB 5 million. By the end of September 2011, over 92% of its loans were under RMB 1 million, demonstrating its commitment to serving micro and small businesses.

Digital banking services include online banking platforms and mobile banking applications that provide 24/7 access to account management, fund transfers, and payment services. The bank was also the first partner bank in the China Development Bank Microfinance Project starting in 2005.

Question 6

What makes Bank of Taizhou unique?

Accepted Answer

Bank of Taizhou holds the distinction of being China's first non-state-controlled city commercial bank, representing a pioneering model in the Chinese banking sector. This private ownership structure has enabled the bank to maintain operational independence and develop innovative approaches to SME lending.

The bank is renowned for the "Taizhou Model" of financial inclusion, which emphasizes relationship banking and deep knowledge of local businesses. Unlike state-owned banks, Bank of Taizhou maintains a highly stable management team, with most senior and middle managers having worked at the bank for nearly 20 years, fostering a strong corporate and risk culture.

Bank of Taizhou has achieved remarkably low non-performing loan (NPL) ratios, maintaining rates around 0.30-0.75%, significantly below industry averages. The bank's corporate spirit is "hardworking, practical, innovative," and its service culture emphasizes being "simple, convenient, efficient."

Recognition includes ranking 12th among China's Top 100 city commercial banks in a 2007 KPMG study and receiving third place in the "Comprehensive competitiveness rank of national city commercial banks" by The Banker magazine in 2008.

Question 7

What type of financial institution is Bank of Taizhou?

Accepted Answer

Bank of Taizhou is classified as a city commercial bank (城市商业银行), a specific category of financial institution in China that typically operates at the municipal or provincial level. City commercial banks were originally formed through the restructuring and consolidation of urban credit cooperatives.

What distinguishes Bank of Taizhou within this category is its status as a privately-owned institution rather than being state-controlled, making it unique among Chinese city commercial banks. The bank functions as both a retail and commercial bank, but with a specialized focus on inclusive finance for underserved micro, small, and medium-sized enterprises.

As of January 2023, the bank's ownership structure includes China Merchants Bank Co., Ltd. (24.86%), Geely Technology Group Co., Ltd. (10%), Linhai Pegasus Investment Co., Ltd. (9.96%), Taizhou Luqiao Jinding Investment Co., Ltd. (9.67%), and Taizhou Jinquan Farm Co., Ltd. (8.67%).

Question 8

What is the Taizhou Model?

Accepted Answer

The "Taizhou Model" refers to Bank of Taizhou's innovative approach to financial inclusion that has become a national best practice in China. This model was designated as the National Microfinance Reform and Innovation Pilot Zone and features the "two platforms, one fund, and one index" framework.

The model includes: a credit information sharing platform that aggregates over 4,000 items of credit data from more than 30 government departments; a trademark exclusive right pledge financing platform allowing intangible assets as collateral; China's first small and micro enterprise credit guarantee fund enabling businesses to obtain guarantees for just 0.75% annually; and China's first small and micro financial index tracking sector health.

This comprehensive ecosystem has saved approximately RMB 2.185 billion in lending costs for small and micro enterprises annually, benefiting nearly 20,000 enterprises. The model emphasizes "effective government, moderate competition, valued credibility, and efficient linkage" and has received attention and instructions from national leaders.

By addressing information asymmetry between banks and borrowers through relationship banking and shared data platforms, the Taizhou Model has successfully served populations traditionally excluded from formal banking services. The model has been studied and replicated across China as a template for advancing financial inclusion.

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