DBS announced today that it is the first Singapore bank to obtain approval from the People’s Bank of China to serve as an RMB clearing bank, marking a major step forward in its RMB capabilities. In addition, DBS has been given approval to operate in the onshore over-the-counter (OTC) bond market. The announcement was made during the Joint Council for Bilateral Cooperation meeting held in Chongqing.

These developments strengthen DBS’ ability to deliver more comprehensive and competitive RMB solutions at a time when clients are increasingly seeking to diversify their currency risk. They also enable the bank to provide access to more efficient RMB settlement services and cross-border usage, which can drive greater investment connectivity and financial innovation across the region.

With direct access to China’s onshore RMB liquidity and its clearing bank status, DBS is able to deliver a more holistic RMB proposition, offering clients wider access to various RMB-denominated instruments and seamless RMB solutions across both onshore and offshore markets. Furthermore, by leveraging Singapore’s position as a global foreign exchange centre, DBS offers greater convenience, improved liquidity access and enhanced settlement options to support clients’ capital and risk management needs.

This builds on the bank’s existing capabilities to facilitate cross-border RMB investment and financing activities. DBS China is one of the earliest direct participants in the Cross-Border Interbank Payment System (CIPS), having been a member since 2015. In September 2025, DBS Singapore was admitted as an overseas direct participant of CIPS.

DBS is a leading foreign underwriter in China’s Panda Bond market, actively assisting international issuers in accessing RMB funding channels. Concurrently, the bank facilitates offshore investor participation in onshore RMB-denominated assets through multiple avenues, including Bond Connect, interbank bond market settlement agency services and QFII/RQFII programmes, thereby enabling cross-border RMB investment and strengthening China’s capital markets’ integration with the global financial system.

With the People’s Bank of China’s approval for the commencement of OTC bond market arrangements, DBS will also be able to facilitate onshore China bond trading and provide custody services offshore. This streamlines access to the China bond market and boosts trading convenience, offering overseas investors greater optionality and a more efficient channel with which to tap China’s domestic bonds.

Lim Soon Chong, group head of global transaction services at DBS, said: “DBS is honoured to have been appointed by the PBOC to play a bigger role in advancing financial cooperation between Singapore and China. As companies seek to build financial resiliency and diversify their currency risk, this appointment ensures that we can deliver deeper liquidity and enhanced settlement capabilities to multiple clients, including corporates, investors and respondent banks.”

Andrew Ng, group head of global financial markets at DBS, said: “Being appointed as an RMB clearing bank significantly strengthens our ability to support clients participating in China’s financial markets. This will create a more seamless bridge between what we can do for them in onshore and offshore RMB markets, further facilitating regional economic activities, increasing client choices and enabling greater market access for issuers and investors alike, allowing them to tap RMB opportunities with greater confidence and agility.”

Re-disseminated by The Asian Banker