Recently, CIB issued a pre-guaranteed letter of credit for the Tianjin Binhai New Area People's Court, becoming the first joint-stock bank in China to issue such a letter of credit.
According to reports, approved by the Supreme People's Court, the Tianjin Binhai New Area People's Court, as a national pilot unit, has pioneered the pre-guarantee enterprise preservation whitelist system. Under this system, when a company on the whitelist is involved in preservation cases, the enforcement department will no longer take preservation measures against the company's bank accounts and other assets but will instead freeze the pre-guaranteed letter of credit issued by the bank. This system, by placing guarantees in advance, minimizes the impact of property preservation on the production and operation of the preserved enterprise, reduces the occupation of enterprise funds, and fosters a favorable business environment.
"With the support of the court, CIB actively participated in drafting the text of the guarantee and designing the product scheme, collaborated in the policy promotion activities organized by the court, and gained a market advantage, becoming one of the few banks capable of handling this business," said a relevant person in charge of the Tianjin branch of CIB.
In early May, the General Office of the State Council issued the Opinions on Innovating and Improving the System and Mechanism to Promote the Standardized and Healthy Development of the Tendering and Bidding Market, proposing to comprehensively promote the payment of bid security, performance security, and project quality security by electronic guarantee (insurance), thereby accelerating the process of replacing deposits with guarantees from the system level.
CIB has continuously improved the functionality of domestic guarantee products, innovatively launched the "Guarantee Butler" service, achieving functions such as guarantee business overview, expiration reminders, and guarantee verification, reducing the daily management burden on financial personnel. Over the past five years, CIB has served 20,372 enterprise customers in various industries, including construction, new energy, equipment manufacturing, transportation, and social services.
In recent years, CIB has actively constructed a supply chain financial ecosystem, accelerated digital transformation, and bridged the "last mile" of guarantee application. Data shows that in 2023, CIB's domestic guarantee business amounted to 57.38 billion RMB, a year-on-year increase of 38.48%; the number of online guarantees issued annually exceeded 10,000, a year-on-year increase of 30.28%.