BoC settles over half of cases in oil product losses - sources

BEIJING, May 13 (Reuters) - Bank of China (BoC) has settled with more than half of customers hurt by losses in a crude oil-linked product after a historic oil price slide into negative territory, two sources with direct knowledge of the matter said.

China’s fourth-largest bank last week offered to shoulder all losses from the fall into negative territory and compensate up to 20% of investors’ original investment, Reuters reported. The deal will lead to a total 6-7 billion yuan ($1.84 billion) hit for BoC if all loss-recording investors settle.

The offer came after the bank said in late April it had settled trades for its crude oil futures trading product, also known as crude oil “bao”, at minus $37.63 per barrel, leaving mainly retail investors deep in the red.

Bank of China declined to comment.