Lender review

Bank of China

LoanCaddie Opinion

Don’t think that Bank of China is only suitable for people and businesses of Chinese background. Bank of China has been in Australia since 1942 and is one of the largest foreign bank lenders to corporate Australia (their yearly lending to corporate Australia is more significant than Citibank, HSBC and ING for comparison). As with the rise with China, Bank of China has a lot of capital as one of the largest banks in mainland China and is keen to lend it out. It is now making a real push into the Australian home loan market with one of the most competitive interest rates offered by a deposit-taking institution. Bank of China is considered to be a conservative bank and will not be one of the most lenient when it comes to serviceability and borrowing limits. Their processes are still relatively new, and hence we wouldn’t recommend them being the only bank you approach if you are looking to bid at auction or negotiate with a vendor very soon. However, if they do get there into time, they will be offering one of the sharpest rates. Bank of China has the potential to be one of the largest non-major lenders in Australia given its capital backing, Australia’s closeness with China and the growing Chinese community. It is unlikely to be the most innovative lenders but is willing to be price competitive for lower risk borrowers.

Facts and lender background

Bank of China is the oldest mainland Chinese bank in existence and has held a branch in Australia for a very long time for a foreign bank (since 1942).


Bank of China is the 4th largest bank in the world by assets (larger than the four Australian major banks combined)

Credit Rating

Bank of China is rated A by S&P (as at 1 January 2019).


Bank of China's ordinary shares are listed on the Shanghai and Shenzhen stock exchanges. As of 30 Sept 2015, the People’s Republic of China owned 65% of all ordinary shares.


Bank of China has some deposit funding in Australia but has the benefit of a significant deposit base in China. The funding position of Bank of China is vastly different to Australian banks and mortgage managers who have more reliance on domestic wholesale capital markets. The cost of domestic wholesale funding is not a driver of Bank of China's profits. The main driver is the volume of loans they can write given the cost of cash on deposits.

Customer service
Product Review Rating

average is 2.1 / 5

Branch network

Branches in Sydney CBD, Haymarket, Paramatta, Hurstville, Chatwood. VIC – Melbourne, Boxhill. WA – Perth. Queensland – Brisbane. These branches cater to English and Mandarin speaking customers.

Internet banking

Bank of China has personal internet banking and a mobile app. Their internet banking and mobile app are not as flash as CBA, but it does the job.


Free withdrawals from any domestic ATM and EFTPOS machine.