The rating on Bank of China (BOC) takes into consideration a degree of implicit Chinese government support and competitive advantages that the bank enjoys as the preeminent Chinese bank in the foreign exchange and international trade markets. These advantages are offset by BOC's weak financial profile and, in particular, the bank's estimated high level of nonperforming loans (NPLs) and underprovisioning. The scale of the historical problems that the bank faces is enormous. If the bank is to resolve these problems in the near to medium term, external support, such as assistance from the government, is most likely to be required. BOC's market size, a legacy of its state ownership and its previous role as a policy bank, underline the bank's
