On December 12, as one of the first issuers, Bank of China successfully issued its first tranche of negotiable certificates of deposit in the interbank market. With an indicative rate of return of 5.2%, the amount of the issuance is RMB5 billion for a term of 3 months.
Interbank NCDs are the book-keeping negotiable certificates of fixed-term deposit issued by financial institutions with deposit business in the national interbank market. The interest rate and price of such certificates of deposit are determined by the market, which is an essential part of China's reform on interest rate liberalization.
As the most internationalized and diversified bank with the longest history of operation in China, BOC has always supported and actively participated in the reform on interest rate liberalization in China. Its overseas branches have started various certificates of deposit business since 2010, and enjoyed extensive experience. The issuance of its first tranche of interbank negotiable certificates of deposit in China will help the bank strengthen its assets and liabilities management capability, and better cope with the requirements of reforms on deposit interest rate liberalization.
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