Bank of China
China's fourth-largest state bank, subject to NFRA stop-loan order on Iran-linked refineries.
Last refreshed: 8 May 2026
- Why did China's NFRA order banks to stop loans to Hengli?
- The NFRA privately told Bank of China, ICBC, AgBank and CCB to halt new yuan loans to Hengli Petrochemical and four other US-sanctioned refineries before 1 May 2026, in a quiet de-risking move separate from MOFCOM's public defiance order.Source: Bloomberg
- Is Bank of China complying with US sanctions on Iran?
- Bank of China is quietly complying with the NFRA stop-loan order, treating its Hengli loan books as the binding constraint, while nominally defying OFAC under MOFCOM Announcement No. 21. It is not calling existing loans.Source: Bloomberg / Reuters
- What is the General Licence V wind-down deadline for Chinese banks?
- General Licence V gives Chinese banks until 24 May 2026 to wind down transactions with US-sanctioned Iranian refineries including Hengli Petrochemical.Source:
Background
The Bank of China is one of the four major state-owned commercial banks of China, commonly abbreviated as BoC (Chinese: 中国銀行). Founded in 1912, it is the country's oldest bank and focuses on international trade finance and foreign exchange operations. It is majority-owned by the Chinese state through Central Huijin Investment and the Ministry of Finance. As of 2025, it is the world's fourth-largest bank by total assets. The bank operates across more than 60 countries, making it a central node in cross-border yuan settlement and correspondent banking relationships.
The National Financial Regulatory Administration (NFRA) privately ordered Bank of China, alongside ICBC, Agricultural Bank of China, and China Construction Bank, to halt new yuan loans to Hengli Petrochemical and four other US-sanctioned refineries before 1 May 2026, Bloomberg confirmed on 7 May. Existing credit was not called. On 2 May, the Ministry of Commerce (MOFCOM) publicly told the same four banks to defy OFAC under Announcement No. 21. The four banks are observing the NFRA stop-loan order while nominally defying the MOFCOM directive in practice, treating their Hengli loan books as the binding constraint. The 24 May wind-down deadline for General Licence V falls 16 days after the NFRA disclosure.