What do you mean by domestic insurance and foreign loans?

Domestic insurance and foreign loan means that domestic banks provide guarantees for subsidiaries or shareholding companies established by domestic enterprises abroad, and foreign banks will also provide corresponding funds to domestic enterprises. Guarantee method: within a certain amount, domestic banks issue letters of guarantee or standby letters of credit to provide financing guarantee for overseas companies of domestic enterprises, without one-time approval, which greatly reduces the business process compared with the previous financing guarantee.

What is the difference between cross-border financing of domestic insurance and cross-border direct loan?

I. Different capital flows

1. Cross-border financing of domestic insurance: "Using overseas funds" refers to a financing method needed by domestic enterprises to set up branches or carry out overseas projects.

2. Cross-border direct loans: "introducing" foreign funds to meet the needs of domestic lenders for domestic financing.

Second, different borrowers.

1. Cross-border financing of domestic insurance: accepting applications from domestic companies, applying for financing from foreign banks for their customers or domestic enterprises designated by them, and ensuring that they can repay the loan principal and interest or fulfill the repayment obligations agreed in the credit line agreement in foreign banks.

2. Cross-border direct loans: cross-border financing guarantees with domestic companies as counter-guarantors and foreign banks as beneficiaries. Direct lending banks provide loans to domestic debtors in the form of their letter of guarantee (the applicant of the letter of guarantee can also be other domestic enterprises).