The State Development Bank (SDB) , one of China's three policy banks, officially opened its business department in Beijing October 28 with the approval of the People's Bank of China, the country's central bank.

SDB President Chen Yuan said the business department will be responsible for managing the bank's loans in Beijing, and handling related savings and settlement transactions.

"The opening of the department further improves the SDB's banking functions, so that it can offer more financial services to clients," he said.

Founded in 1994, the SDB has extended loans of more than 500 billion yuan, accounting for some 40 percent of medium- and long- term loans by state-owned banks, and has financed over 80 percent of the state's key construction projects.

At present, the SDB's total assets exceed 600 billion yuan, playing a significant role in the development of national economy.

Chen said that the amount of outstanding loans under the management of the business department is up to 83.1 billion yuan, involving key construction projects such as the Beijing subway, the Shaanxi-Beijing natural gas pipe line, and the Beijing-Kowloon Railway.

He said that the SDB is continuing credit reforms, improving asset quality, preventing financial risks, and upgrading banking operational mechanisms in order to create a modern policy bank that conforms to international standards. (Xinhua)