Development Research of Letter of Guarantee in Bank of China Ningxia Branch

Letter of Guarantee (L/G) is a traditional advantage product of Bank of China. In recent years, as China’s economy into the fast lane, after joining the WTO and further convergence and integration of the world economy, the demand of domestic and overseas customer for L/G is rising. With a good international credit standing, reputation and the competence of handling the L/G business, BOC maintain a large market position in this transaction, it takes up75pet of the market, especially in the field of overseas guarantee of the domestic institutions of our country. BOC has a long history in dedicating to the L/G business, this business is in the leading position among all other banking institutions. L/G issued by Bank of China has been widely recognized and accepted in the economic and trade activities around the world.First, the article describes the status of the L/G development of Bank of China Ningxia Branch, and then use the SWOT tool to give further analysis in development advantage, weaknesses, opportunities and challenges, then summarize that we must realize our own advantage and weaknesses, seize opportunities, meet challenges and to make dynamic development strategies, so that we can develop L/G business of Bank of China Ningxia Branch faster and better. Finally, the chapter put forward the L/G development strategies:1. Increase L/G product development strength, dig the development potential;2. Strengthen risk management, promote the healthy development of L/G business;3. Promote the L/G business innovation, upgrade the bank’s power of competition;4. Established marketing system, boosting L/G business to a new level;5. Strengthening human resources, enhance capacity for sustainable development.