Corporate Banking in China

RAROC profiles and pricing benchmarks for 3 China banks, sourced from Pillar 3 disclosures.

Overview

OpenRAROC tracks 3 banks headquartered in China with a combined corporate credit exposure of EUR 46.7tn. The average China bank in our dataset has a cost-to-income ratio of 34.0% and an average corporate probability of default of 2.89%. On a representative BBB+ EUR 25M 5-year term loan, these banks generate an average RAROC of 8.06%.

Cheapest vs most expensive in China

On the standard sample deal, ICBC is the cheapest lender in China, requiring just 233bp to hit a 12% RAROC hurdle. The most expensive is ICBC at 233bp — a difference of 0bp on the same deal. For a EUR 25M facility, that's EUR 0 per year in interest expense.

All 3 banks ranked by RAROC

RAROC computed on a representative BBB+ rated, 5-year, EUR 25M term loan at 150bp spread. Click any bank for its full profile.

#	Bank	C/I	Avg PD	LGD	EAD	RAROC	Min spread
1	ICBC	35.0%	3.16%	38.3%	EUR 18.7tn	8.06%	233bp
2	China Construction Bank	33.0%	2.73%	38.3%	EUR 14.4tn	8.06%	233bp
3	Bank of China	34.0%	2.78%	38.2%	EUR 13.6tn	8.06%	233bp

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