China Development Bank is keeping its motto of having zero risk when it comes to bonds as compared to commercial banks in China. CDB is adamant to hold down the borrowing costs to maintain its status as one of the world leading policy lender.
Though there are talks whether CDB will veer into becoming a commercial bank or will opt to be a development bank which holds commercial operations, there is no confirmed advisory for this move. To date CDB does not take in personal or commercial deposits and there is a zero risk involved when it comes to the weighing means of holders when it comes to bonds.
As per Li Jiping, Vice President of China Development Bank, "Our bonds will continue to have zero risk weighting. I can't say whether that will be the case forever, but it should remain so for the foreseeable future."
Investors of CDB can be rest assured that line of business will continue and the standards set by the bank as zero risk will be implemented until the end of 2013.
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