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RMB Lending with Banking Financial Institutions

I. Description
The RMB lending with banking financial institutions refers to the unsecured financing conducted through the national uniform interbank lending network between ICBC and banking financial institutions in the national interbank lending market.

II. Target Customers
Policy banks, commercial banks and other banking financial institutions.

III. Functional Features
1. The customer needs to have qualifications for trading in the interbank lending market.
2. The financing term is relatively short. The RMB interbank lending is mainly used for the management of short-term liquidity, and the longest period of lending may not exceed the longest period of borrowing set by the People’s Bank of China on the borrower.
3. Flexible trading elements. The RMB 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 macroeconomic policy and currency market changes.
4. Banking financial institutions can flexibly manage short-term funds through the RMB inter-bank lending business to realize the short-term financing of RMB.

IV. ICBC Advantages
ICBC is one of the largest participants in the national inter-bank lending market and an active participant having important influence in the international financial market. It has strong financial strength, an intensive capital operating system and an experienced trading team that can serve customers with quality products and services.

V. Price
The price is determined by the two parties of trading after negotiation with reference to SHIBOR.
VI. Service Channels and Hours
The inter-bank lending must be conducted through the national unified interbank lending network.
Trading time: the time specified by the National Interbank Funding Center (Monday to Friday, 9:00 to 12:00, 13:30 to 16:50, except statutory holidays) and the working hours specified by ICBC.

VII. Operation Guide
1. The interbank customer and ICBC reach the preliminary intention of RMB interbank lending through market inquiry.
2. To conduct interbank lending trading, interbank customers and ICBC must enter into the contract for each trading. The contents of contract include, but are not limited to, the names of trading parties, trading date, trading amount, trading period, lending rate, interest calculation method and liability for breach of contract.

VIII. Risk Prompt
The RMB 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.

Global Market