SINGAPORE - OCBC Bank has inked a 10-year strategic cooperation agreement with its associate company, China's Bank of Ningbo, said the Singapore bank on Tuesday (Aug 22).
The plan is to "deepen collaboration across a broad range of business areas, intensify knowledge sharing and scale up staff training," it said in a statement.
"This initiative accelerates the efforts of both banks in growing their businesses and serving the onshore and offshore needs of customers in China's Greater Bay Area and South-east Asia," OCBC added.
The agreement was signed on Aug 17. OCBC first bought a 12.2 per cent equity holding in Ningbo Commercial Bank, as it was c alled then, in 2006.
It later raised its stake in the financial institution - renamed Bank of Ningbo - in 2014 to 20 per cent, which is the maximum that is allowed.
Under the agreement, the two banks will work with each other to tap on business opportunities in areas such as corporate banking, treasury, investment banking and wealth management, said OCBC.
It added: "To promote greater understanding of the opportunities, risks and regulations
in the Greater Bay area, the agreement provides for knowledge sharing by way of regular dialogue, training and employee secondment."
OCBC will have a US$5 million training grant to support training initiatives involving Bank of Ningbo's employees over the next 10 years, while the Ningbo institution will bear expenses by OCBC employees when it comes to training programmes there.