Led by Harbin Bank, a Chinese banking consortium consisting of another two banks in Inner Mongolia autonomous region, signed a 1-year agreement with the Savings Bank of Russia (Sberbank) for inter-banking lending, as of Sept 2, involving 1-billion yuan ($156 million).

A representative of the Russian partner says that the loan will be used to increase trade with China, especially for Russia’s Far East, and investment, with Harbin Bank, the Baoshang Bank and Bank of Inner Mongolia entrusted to start inter-bank lending services.

It is an innovative financial business between Chinese and Russian banks, and the first multi-lateral cooperation for a Chinese banking consortium, with the borrower being the largest and most important state-controlled bank in Russia with branches across the country.

Harbin Bank also has a long history of doing business with its Russian counterparts in currency exchange, inter-bank cooperation and cross-border funding.