-Negotiated Deposit
Negotiated Deposit is a kind of RMB deposit in which commercial banks, according to the regulations of the People's Bank of China or the China Banking and Insurance Regulatory Commission, provide a special deposit to some Chinese-funded funds with a special nature such as an insurance fund, a social insurance fund or a pension insurance fund with a long- term, large initial amount and negotiable interest rate, term, interest settlement, payment modes, default penalty, etc. The deposit can be used as a long-term source of funds for deposit-based financial institutions, which is not treated as an interbank deposit and should be included in the loan-to-deposit ratio indicator. The negotiated deposit cannot be withdrawn in advance, and the negotiated deposit certificate can be used as financing collateral.
Transfer Bank/Corporate
Acceptance Draft Discounting
Transfer Bank/Corporate Acceptance Draft Discounting refers to a business in which the Bank, who have provided a Bank/ Corporate Acceptance Draft Discounting to their customers, transfers its discounted and undue drafts to the Bank to obtain the funds.
Business scope: Discounted and undue e-Bank Acceptance Draft and e-Commercial Acceptance Drafts
Term of Bill: Not more than 1 year
The fund demanding corporate customer applies to the Entrusting Bank.
The Entrusting Bank entrusts other banks (“the Entrusted Bank”) to provide financing in its own name.
The Entrusted Bank conducts the payment to a nominated account, according to instructions of the Entrusting Bank on the payment date.
The financing corporate customer repays the Entrusting Bank on maturity and the Entrusting Bank repays the principal and interest to the Entrusted Bank.