Banks Step Up Bill Oversight After Major Thefts, Fraud

(Beijing) – Major Chinese commercial banks have taken steps to improve oversight of their bills of exchange business, following a string of thefts and unauthorized printing of the short-term financing instruments often used to guarantee payments by small businesses to their creditors.

Bills of exchange are certificates showing a bank has promised to make a payment on behalf of a client in the future. In addition to their use as short-term financing instruments, such bills are also a financial product that can be traded among banks.