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I. Description
The foreign currency interbank lending with non-banking institutions refers to foreign currency credit lending conducted between ICBC and non-banking financial institution counterparties through the money market.
II. Target Customers
They mainly include domestic non-banking financial institutions such as finance companies of corporate groups and financial leasing companies.
III. Functional Features
1. Short trading term. The foreign currency interbank lending is mainly used for the management of foreign currency short-term liquidity. For non-banking financial institutions, the longest lending period is usually not more than 3 months.
2. Flexible trading elements. The foreign currency interbank lending transaction is conducted by way of inquiry, negotiated independently, and closed separately. The interest rate for lending is affected by various factors such as the monetary policy of the state and changes in the supply and demand of capital in the international market.
3. The currencies accepted in the foreign currency interbank lending with non-banking financial institutions include major currencies in the world such as US dollar, euro, yen, and pound.
4. Non-banking financial institutions can flexibly manage their short-term foreign currency funds through the foreign currency inter-bank lending business to meet the need for adjusting the short-term foreign currency position and realize the short-term financing.
IV. ICBC Advantages
ICBC is an active participant having important influence in the international financial market and has strong financial strength, an intensive capital operating system and an experienced trading team. The foreign currency interbank lending with non-banking financial institutions is characterized by multiple online trading channels, fast speed of liquidation, high trading efficiency, large price advantage, and strong market competitiveness.
V. Price
The interest rate of foreign currency interbank lending is determined by ICBC and interbank customers after negotiation with reference to LIBOR and the price of domestic foreign currency interbank lending market.
VI. Service Channels and Hours
Non-banking financial institution customer may consult ICBC or submit application by phone or email with regard to the foreign currency interbank lending business.
Trading time: trading time of relevant markets and business hours of ICBC.
VII. Operation Guide
1. The interbank customer and ICBC reach the preliminary intention of foreign currency interbank lending through market inquiry.
2. The foreign currency interbank lending transactions are initiated after ICBC completes business-related review.
VIII. Risk Prompt
The foreign currency interbank lending with non-banking financial institutions is subject to various risks including policy risk, liquidity risk and operational risk. The level of interest rate is affected by many factors such as macroeconomic policies and changes in the operation of the money market. Customers should fully recognize the risks that this business may involve and well manage the liquidity.
Note: The information given on this page is for reference only. See the announcements and rules of local outlets for details.
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