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Product Name
Interbank Financing and Payment
Product Description
According to agreements between BOC London and Bank of China branches as well as Head Office in China or correspondent banks in China (the banks in China), BOC London finances the banks in China for their payments due under letter of credits or Inward Collections or Telegraphic Transfers.
Interbank Financing and Payment can meet finance requirements of the banks in China very well.
Product Features
Meeting the demand for the low-cost overseas funds for domestic branches or correspondent Chinese banks.
Eligible Applicants
1. Exporters wish to obtain payment at sight, whereas importers and their banks expect forward payment and financing.
2. Fund cost in China is higher than in those countries or areas where the exporters are situated.
Application Requirements
The correspondent Chinese banks should have the credit line in Bank of China.
Application Procedures
1. BOC London signs Interbank Financing and Payment agreements with the banks in China.
2.The banks in China send applications together with copies of letter of credits and cover letters or cover letters under Inward Collection or T/T applications to BOC London.
3.After BOC London accepts Interbank Financing and Payment applications, the banks in China sign finance contracts with importers, an at the same time send authenticated SWIFT messages to BOC London indicating payment instructions, finance period and repayment liabilities.
4.BOC London pays accordingly and sends confirmations to the banks in China with authenticated SWIFT messages.
5.On maturity the banks in China repay BOC London.
Our Advantages
1.Funding advantage: Bank of China can raise sufficient funds of lower costs in money markets.
2.Comprehensive branches as well as correspondent bank network: Bank of China has a network of worldwide branches and correspondence banks, especially Bank of China has branches in every financial center, which could provide financial support at low cost.
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