Best transaction bank for trade finance 2017
Bank of China
Bank of China is the first domestic commercial bank to offer trade finance in China. It has led domestic peers in launching a wide range of trade-finance services, from factoring, forward exchange facilities, renminbi and foreign currency swaps to cross-border renminbi settlements.
Operating in 50 countries and overseas regions across six continents, with a history of 105 years and with a full range of products and services, the bank strengthened its position as a clear leader among domestic banks in trade finance, recording sustained growth across sectors last year.
Take, for example, the bank’s cross-border renminbi settlements for domestic and international companies and guarantees for financing and non-financing activities conducted overseas by domestic businesses.
International settlement business is one of BOC’s traditional strengths. By the end of last year, the bank’s overseas branches had opened a total of around 1,500 renminbi interbank clearing accounts for global customers. And the volume of cross-border renminbi settlements it conducted last year reached Rmb4.04 trillion ($594 billion), putting it well ahead of its domestic peers.
Among Chinese commercial banks, BOC has the most comprehensive financing and non-financing guarantee products. It is also a pioneer in China’s banking sector in offering foreign financing and non-financing guarantees for domestic businesses operating overseas.
With more Chinese businesses seeking to establish a global presence in recent years, BOC has stepped up its guarantee provision to domestic clients to help them secure contracts for bulk commodity exports and the construction of overseas projects, as well as to carry out mergers and acquisitions overseas.
By the end of 2016, the bank had provided more than Rmb79 billion in guarantees for domestic clients’ overseas financing activities while guarantees for their overseas non-financing activities exceeded Rmb97 billion, putting it ahead of the other Chinese commercial banks on both counts.