Foreign banks face tougher collateral demands in China

BEIJING - Chinese banks, increasingly wary of the credit risk of their foreign counterparts, want more collateral from western banks as well as parent company guarantees for derivatives trades conducted by locally incorporated foreign banks.The demands, which many foreign banks find unpalatable, are not being met so far, and large parts of the over-the-counter derivatives market in China have ground to a halt.

Local banks are pressing their case through the use of their own derivatives master

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: