Rmb settlement business to be new profit growth point for banks
With the Chinese government aggressively promoting the Rmb, liberalisation of the currency is expected to continue, with banks advised to step up further in this area. November 08, 2012 | Alice YangThough no Chinese banks participated in SIBOS 2012, China was still one of the focus issues during the conference. According to a poll carried out by Barclays at Sibos, 68% of bank executives (bankers from Barclays not included) stated they have done business in renminbi, and 87% said they are open to holding renminbi for trade or investment purposes. At the same time, 66% of bankers worry about regulation, which is the largest concern next to “lack of adequate capital” (13%). According to the 2012 first three quarters financial statistics report published by the People’s Bank of China (PBOC), the volume of trade settled in renminbi has reached 794.8 billion ($127.3 billion), making up for 12.6% of the overall international trade. The use of renminbi as a trade settlement currency is booming around the world, with more and more customers in Europe and Asia opting for the renminbi over the US dollar for trade deals with China. At the same time, other ways of using the renminbi overseas have also developed gradually. Since the PBOC and China’s State Administration of Foreign Exchange allowed foreign institutional investors to invest in directly in the renminbi in 2011, the amount of foreign direct investment in renminbi has reached 126 billion ($20.2 billion) in the first three quarters of 2012, 1.4 times as much as the amount of the full year of 2011. Offshore renminbi loans grew too, totaling 176.7 billion ($28.3 billion) in August 2012, with a year-on-year growth of 14%. Some of the many foreign banks actively participating in conducting the renminbi settlement business include HSBC, Standard Chartered Bank, Citibank, JP Morgan Chase, Woori Bank, Dah Sing Bank, BEA and Hang Seng Bank. They have been holding international roadshows, global marketing campaigns and sales promotions to develop their renminbi businesses. “The internationalization of (the) renminbi is a natural process driven by the development of China’s econom... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Rmb, Trade Finance, Transaction BankingChina,Rmb,Trade Finance,Transaction Banking, China,Rmb,Trade Finance,Transaction Banking, Keywords:SIBOS 2012, HSBC, PBoC SIBOS 2012, HSBC, PBoC
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