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Commercial Draft Rediscounting

I. Description
Commercial draft rediscounting refers to the transfer of undue discounted commercial drafts by bill financing business institutions of ICBC at all levels to another financial institutions in the form of discounting to obtain funds.

II. Target Customers
Financial institutions with bill business license and eligible for interbank business.

III. Features and Advantages
i. This business type enables financial institutions to flexibly buy and sell credit assets, and thus adjust the asset size and optimize core indicators such as loan-to-deposit ratio;
ii. It allows financial institutions to effectively adjust the fund position, enhance the asset liquidity and simultaneously maintain asset returns;
iii. It may adjust the asset-liability ratio of financial institutions, enhance the asset allocation efficiency, and optimize the existing assets structure;
iv. It helps reduce the financing cost of financial institutions and decrease the asset risk.

IV. Conditions
i. The duplicate copy (or the original) of the applicant’s business license, and a photocopy of financial license, affixed with the official seal of the counterparty;
ii. The applicant’s documentary evidence for the qualification of transfer discount business;
iii. A power of attorney authorizing the handler to handle the business (stamped with the official seal and signed/stamped by the handler);
iv. Original of the handler’s identification card, and photocopies of the identification cards of both the handler and legal representative;
v. The original of the commercial draft;
vi. A photocopy of discounting voucher (if it is purchased by the customers in the form of transfer discount, the transfer discounting voucher of the immediate prior bearer shall be additionally provided); in the case of commercial acceptance bill, all discounting vouchers of the commercial draft circulated among financial institutions shall be provided;
vii. A photocopy of the query and reply (affixed with the business seal of the trading customer, i.e., Red Seal);
viii. Transfer discounting voucher (stamped with the official seal or finance stamp consistent with the previously affixed seal);
ix. Other documents required by bill financing business institutions of ICBC at all levels.

Note: The information on the page is for reference only. Specific businesses are subject to announcements and regulations of local outlets.


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