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Bill Asset Custody

I. Overview
Bill Asset Custody refers to a service whereby ICBC bill custody institutions, as entrusted by other banks or non-banking financial institutions, provide services like physical commercial draft custody, ownership registration, ownership change, settlement, information report, bill verification and agency collection.
i. Bill custody
ICBC monitors the risk of and classifies the bills as entrusted by the customer. It is responsible for managing the bill assets in a centralized manner, monitoring their status in a real-time manner through IT-based management and feeding back the bill information to the customer, thereby providing back-office support for easy management
ii. Agency verification
ICBC checks the authenticity and compliance of bills and transaction documents submitted by the customer and objectively evaluates bills, improving the operation management of bill assets.
iii. Transaction supervision
The customer can select online or offline settlement method through bill custody system to conduct electronic transaction and settlement of managed bills. ICBC can provide real-time fund settlement and transaction supervision services and change the ownership of bills upon the customer's instruction, which can enhance the efficiency and reduce the operation cost.
iv. Agency collection
ICBC manages the bills receivable and urges the collection of matured bill amount through dynamic monitoring on matured bills and real-time follow-up to cut down the final-period management cost of bills receivable, remove the collection stress and improve the management of stock bills for the customer.
v. Agency enquiry
ICBC applies for enquiry on bank acceptance draft from the acceptance bank as entrusted by the customer, checks public summon exhortation for pre-warning and feeds back the result to the customer through its business information system so that he can mitigate the potential risk of holding bills.
vi. Information report and value-added services
The ICBC Bills Discounting Department tailors the custody service report and provides data about deposit, trading and collection for the customer. Meanwhile, the customer can enjoy many value-added services like daily reference quote, average price, anticipation of price trend and bill risk prompts. ICBC also organizes bill business forum to study the development of bill business and offers legal assistance.

II. Target Customers
i. Banks and their authorized sub-branches in China qualified for bill business as approved by regulatory authorities;
ii. Non-banking financial institutions in China qualified for bill business or bill asset investment as approved by regulatory authorities;
iii. Foreign banks in China qualified for bill business as approved by regulatory authorities.

III. Features and Advantages
i. Third-party custody, lower business risk
1. Professional service
ICBC bill custody business provides full-process services, helping customer release back-office human resources and transfer back-office operational risks.
IIIndependent custody and secure transactions.
The bill asset custody institution is responsible for the custody of bills and offers services like fund settlement and ownership change as a third party. The customer can manage the custody account, fund account and bill trading in a real time manner and enjoy information services like accounting statement and custody report which can ensure the security of fund accounts and custody accounts of both sides of transaction.
Innovative process and compliance operation
Electronic circulation helps change the account without transferring bills, thus avoiding compliance risk and operational risk in disguised forms such as agency holding and clearing business.
ii. Electronic circulation enhances efficiency
1. Lower delivery cost and higher liquidity
The customer deposits the bill in the custody system and bears the cost of verification, physical bill circulation and delivery for the first deposit. During the circulation, the ownership will be changed automatically and relevant information will be recorded based on the need of bill owner, which can greatly enhance the liquidity.
2. Wider business scope, more operation channels and opportunities
Compared with traditional business modes, the bill asset custody system covering more regions and customers can satisfy the cross-region and cross-customer type business requirements.
iii. Professional operation and more value-added services
1. Enhanced bill management system
The bill custody system can strengthen the centralized management of bill business and rectify the practices of separate operation and ineffective integration of resources to enhance the efficiency.
2. Complete risk prevention information
The system can collect public summons for exhortation and update the data base every day, set fire wall for bill deposit to avoid buying bills in public summons for exhortation and screen stock bills to ensure the security of bill right during the custody.
3. Cost-effective bill service
The customer can enjoy concierge-like services with a small fee to gain more business opportunities, enhance efficiency and turnover, reduce risk cost, human resource cost and delivery cost. The customer and ICBC can become good partners with mutual benefit.

V. Required Documents
i. Bill Asset Custody Agreement and Transaction Rules in the Bill Asset Custody System signed by both parties;
ii. The customer has to hold an ICBC settlement account and register for "Bill Winner"-"Custody" in corporate Internet banking;
iii The customer has to submit the Application Form for Bill Asset Custody Service to ICBC bill custody institution and reserve the seal and information about business contact person;
iv. Other documents required by the ICBC Bills Discounting Department and branches.

Note: The information provided on this page is for reference only. Concrete business shall be subject to the announcement and provisions of the local outlet.

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