News Stories · Finance

IMD and the Agricultural Bank of China hold event to celebrate ground-breaking IMD case study of ABC’s business model

One of the largest banks in the world, ABC, has become an inclusive finance innovator
September 2017

IMD recently held an event with executives from the Agricultural Bank of China (ABC), following close collaboration which resulted in a case study about the bank’s activities to finance farming in China. The event was led by IMD President Jean-François Manzoni and ABC Director Zhao Zhongshi, head of the Sannong (farming) finance.

In late 2016, the Agricultural Bank of China (ABC) was the fourth largest bank in the world and ranked 29th among the Fortune Global 500 companies. Established in 1951, ABC went public in 2010. It was the world’s biggest ever initial public offering at the time.

The case will also be commemorated with a plaque at ABC’s headquarters in Beijing.

The case details the innovative products and services that ABC provides to small farmers in China, no small feat as it is a sector without access to technology nor to financial products.

Arturo Bris, Director of the IMD World Competitiveness Center, led the preparation of the case and made a special trip to the Agricultural Bank to conduct research interviews.

In rural China, ABC provides an inclusive finance package, focusing on three areas: basic financial services for farmers, financial poverty alleviation, and loans to rural households.

It aims to serve a huge and widely dispersed rural population (589.73 million people as at the end of 2016). Compared to other regular financial businesses, providing credit and deposit services for farmers is confronted by three main obstacles: first, high service cost, high business risk and the fact that farming households are unable to provide lawful, effective and full loan guarantees.

The IMD case explores how the bank has innovated and provided social impact to serve a difficult to access population.

Read more about the case study: Promoting Inclusive Finance: Agricultural Bank of China

Latest
IMD News Leadership Growth
Hilti and IMD launch scholarship program
A new scholarship program aims to attract more MBA program applicants who have a background in science, technology, engineering and math (STEM) and the ambition to pursue a leadership role in STEM professions.
Hilti and IMD launch scholarship program
IMD News Start-up Competitiveness Growth
Twelve fast-growing startup founders join the second edition of the LeadiNNg to Scale Up program
Twelve high-tech companies from a variety of industries have been selected to participate in the second round of the LeadiNNg to Scale-Up program, which kicked off on 25 January 2023 at IMD.
Twelve fast-growing startup founders join the second edition of the LeadiNNg to Scale Up program
News Stories Global Business
IMD accredited as a Swiss university institute
The Swiss Accreditation Council (SAC) has granted IMD accreditation as a university institute
IMD accredited as a Swiss university institute