Entrustment loan is the sole instrument to allow inter-company borrowing and lending in China. Counterparties, loan usage, amount, tenor and interest rates are negotiable between principal and borrower. Standard Chartered Bank acts only as an agent bank to provide the service of loan drawdown, monitor and help with the interest calculation and settlement.
Sweeping is the physical movement of balances to and from various operating accounts into a single concentration account. Establishing a cash pool maximises interest returns on surplus and reduces the overdraft charges. It can substantially save your group’s overall funding cost in China, resulting in a win-win outcome for your cash rich and cash poor entities. Furthermore, it also improves the visibility of your account balances on a consolidated level.
Interest optimisation is a pricing mechanism whereby you are able to enjoy optimised interest rates on your balances in individual accounts by virtue of applying a specified calculation method.Advanced interest optimisation method is another mechanism where the client can earn bonus interest through increase in their operating account volume and committed balance. Interest optimization is useful for clients with a decentralised management.
Why Standard Chartered
Every year we are recognised for our achievements in banking and finance. Here are some of the recent awards we have won in China related to cross border RMB services. Please click here to view the full list of our recent awards in China and click here to view our recent global awards.
Other prestigious awards in China include:
- CFO World
- Best Corporate Internet Platform Award 2014