Banking Financial Institutions Foreign Currency Interbank Borrowing and Lending
I. Description The foreign currency lending with banking institutions refers to foreign currency credit lending conducted between ICBC and bank customers through the money market.
II. Target Customers Policy banks, commercial banks and other banking financial institutions.
III. Functional Features 1. The financing term is relatively short. The foreign currency interbank lending is mainly used for the management of short-term liquidity, and the term doesn’t exceed one year in general. 2. Flexible trading elements. The foreign currency interbank lending transaction is conducted by way of inquiry, negotiated independently, and closed separately. The interest rate 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 lending with banking institutions include major currencies in the world such as US dollar, euro, yen, and pound. 4. 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, an experienced trading team and strong market competitiveness.
V. Price The interest rate of 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 Commercial bank customers may conduct the foreign currency interbank lending transactions with ICBC through the foreign currency lending system of CFETS, TX Trading and other transaction systems. 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 review.
VIII. Risk Prompt The foreign currency interbank lending with 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.