Risk participation business refers to our branch as a risk participation bank to participate in all or part of the credit risk of debtors under international settlement and trade finance on a financing or non-financing basis. Risk participation business is an important product for strengthening cooperation among financial intermediaries.

Depending on whether our branch is financed or not, it is categorized into Funded Risk Participation and Unfunded Risk Participation.

Funded Risk Participation means that our branch pays the risk participation amount at the same time as the risk participation; Unfunded Risk Participation means that our branch does not carry out financing, and if the debtor fails to fulfill the payment obligation at maturity, our branch pays the corresponding claim amount in proportion to the risk participation. Unfunded Risk Participation means that if the debtor fails to fulfill its payment obligations when due, our branch will pay the corresponding claim amount in proportion to the risk participation.

Scope of business: Forfaiting, financing of reimbursement under letters of credit, T/T remittances, D/A collections and domestic letters of credit; confirmation of letters of credit; transfer of letters of guarantee; financing of export credit insurance; discounting of bankers' acceptances; and other risk participation businesses.