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Trade Risk Participation

Overview

Trade Risk Participation refers to the situation where the negotiating bank/confirming bank under L/C, forfaiter, or the beneficiary bank under L/G, in order to reduce the risks they undertake, invite one or more banks to participate in the capital and/or credit risks of the issuing bank/acceptance bank, or counter guarantee bank/guarantee bank. This service, with banks as participants, mainly covers ABC's participation in the capital or credit risks of other banks and ABC's invitation of other banks to participate in the capital or credit risks of ABC.

Features

To improve the cash flow of the bank.

To optimize the risk structure of the trade finance undertaken by the bank and to diversify, transfer and mitigate risks.