Do Chinese banks issue money?

Banks in China have bill issuance business. Note issuance facilities is also called "the financing arrangement of bill issuance". The borrower can issue short-term bills in its own name to raise medium-term funds, and the underwriting bank promises to buy any bills issued by the borrower or provide standby loans. Bill issuance tool is an innovative tool with legally binding medium-term financing commitment.

Bill issuing tool

If the borrower is a bank, the bills issued are usually short-term certificates of deposit. If the borrower is an industrial and commercial enterprise, the bill issued is usually a promissory note, the so-called European bill. The bank promised to provide convenient financing for five to seven years. During this period, borrowers can issue bills in cycles, most of which expire within three or six months, a few of which can last for one year, and some of which can last for several weeks or days. The advantages of bill issuance are lower financing cost, greater flexibility, stronger liquidity and less risk. The face value of the notes is mainly in US dollars, with a small amount of Singapore dollars and European currency units. The central markets are in London and Singapore.

It refers to a financing innovation activity in which relevant banks sign an agreement with borrowers, stipulating that future borrowers will issue a series of short-term bills in succession according to legally binding financing commitments, and the banks will buy them at the highest interest rate cost and sell them in the secondary market, otherwise the underwriting banks will provide equal loans to meet the financing needs of borrowers.

Note issuance facilities is a financial innovation tool of 198 1 European money market, which is based on the requirement of traditional European banks' credit risk diversification. It refers to a financing innovation activity in which the bank concerned signs an agreement with the borrower, stipulating that the future borrower will buy a series of short-term bills continuously issued by the bank in accordance with a legally binding financing commitment and sell them all at the highest interest rate cost in the secondary market, otherwise the underwriting bank will provide an equal loan to meet the borrower's medium-term financing.