Business / Markets

Bank of China gets yuan mandate in Frankfurt

(China Daily) Updated: 2014-06-20 08:46

The yuan ranked seventh as a global payments currency in April, according to the Society for Worldwide Interbank Financial Telecommunications.

Industrial and Commercial Bank of China Ltd was previously selected to provide yuan-clearing services in Singapore, while Bank of China was designated as a yuan-clearing bank in Australia.

CCB Chairman Wang Hongzhang said in London on Thursday that the bank will seek to provide a prompt, secure and efficient yuan-clearing service that satisfies the needs of other banks in London.

Wang said because CCB in London is currently a subsidiary of the parent bank, it has set up an arrangement with the headquarters in the form of a direct guarantee, to make sure CCB London can have the financial capacity to accommodate its new clearing bank role.

Wang said CCB has already submitted an application for a branch license to the UK regulators, although he didn't know when approval will be granted.

Branch status gives a bank much larger lending and financing capabilities than those of a subsidiary.

Wang said its clearing platform acts as a complement to existing clearing channels in London, as opposed to causing competition.

He said the signing of cooperation agreements between CCB and 11 major banks shows that other banks trust it to provide this service.

Bank of China gets yuan mandate in Frankfurt

Bank of China gets yuan mandate in Frankfurt

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