Emerging from the Severe Competition

China Construction Bank Won the Bidding as the Collecting Agency of Non-tax Revenue for the Central Finance

Recently in the bid opening ceremony for the collection of non-tax revenue for the central finance held by the Ministry of Finance, China Construction Bank won the bidding as the agent bank to collect non-tax revenues for the central finance out of the severe competition with 12 domestic commercial banks with qualification authorized by People’s Bank of China. It is the second successful biding by China Construction Bank in the centralized collection and payment business for the national treasury following the successful bidding as the agent bank of the authorized payment for the central finance.

The collection of non-tax revenue is an important part of the reform in the national treasury management system. It is an important business involving thousands of collection execution bodies across China and thousands of collecting items adding up to RMB 300 billion. In 2002, the Ministry of Finance undertook the reform in this field and decided to select the agent bank through competitive bidding.

CCB has been all along paying close attention to the reform in the national treasury management system. CCB has successfully won the qualification as the agent bank of the authorized payment for the central finance for several consecutive years and maintained No.1 status in terms of market shares. Having received the bidding invitation from the Ministry of Finance in March, the party committee of the headquarters attached great importance to it and immediately organized the bidding working group. Leaders of the headquarters led the working group to carry out consultations, negotiations and communications with the Ministry of Finance. The Leaders also listened to the reporting by the bidding working group several times. With the earnest preparation for almost 20 days, the bidding document with nearly 20 thousand words has been completed, making CCB ready to participate in this bidding. This business involves the relations between multiple parties including the Ministry of Finance, collection executing agencies, payers and the agent bank and requires that all collected funds must be transferred to the special account of the central finance through the internal fund system of the bank on a daily basis and that the large amount of attached information must be uploaded as well, which puts a tough requirement upon every business process of the agent bank, including account opening and management, fund remittance, transfer and clearance, account check, information feedback and risk control.

CCB boasts such advantages as “sound organization, powerful leadership, strong operation ability, sufficient competent staffs and departments, advanced and mature system, strict internal control system, and rich service experiences”. Therefore, having gone through the strict evaluation of the Ministry of Finance, CCB won the bidding as the agent bank.