Introduction

Risk participation means that Bank of China, as a risk participating bank, bears parts or all of the credit risks of the obligor under international settlement and trade finance, on a funded or unfunded basis. Risk participation is an important product to strengthen cooperation.

According to whether Bank of China provides funding, we have funded risk participation and unfunded risk participation.

Funded risk participation means that Bank of China funds the deal in risk participation; unfunded risk participation means that Bank of China does not provide funding, but in case obligor fails to fulfill payment obligations at maturity, Bank of China shall make corresponding payments for creditor's rights in accordance with its pro rata share.

Features

1.Solution to the problem of lack of credit line;

2.Reduction of risk assets, optimization of asset portfolio, and satisfaction of BASEL II requirements for minimum capital;

3.Assistance in expanding business in Chinese market;

4.Improvement of risk coverage capacity;

5.Maintenance of a good relationship between you and your obligor through the undisclosed risk participation.