China's ICBC inaugurates Yuan clearing bank service in Singapore

SINGAPORE, April 2 (Xinhua) -- The Industrial and Commercial Bank of China (ICBC) announced on Tuesday its inauguration of RMB clearing bank services in Singapore, together with its newly established major business hubs, including Private Banking Hub, Commodity and Structured Trade Finance Hub, and Cash Management Hub.

The company said the three new hubs are focusing mainly on RMB related businesses and offer cross-border RMB products covering areas such as retail banking, funds settlement, trade finance, global cash management and asset management, etc.

On Feb. 8, the People's Bank of China designated the Singapore branch of the ICBC as the yuan-clearing bank in Singapore. Singapore is also the first regional financial center outside China to have a yuan clearing bank. In China's Hong Kong and Taiwan, the local units of the Bank of China had been picked to clear yuan transactions in 2004 and 2012, respectively.

Earlier in last June, Ong Chong Tee, deputy managing director of the Monetary Authority of Singapore (MAS), said at a seminar that the pool of yuan deposits in Singapore was estimated to be around 60 billion yuan (9.68 billion U.S. dollars).

Then a serie of fruitful collaborations between the central banks of both countries have been announced. In last October, MAS extended Qualifying Full Bank privileges to ICBC and Bank of China as part of the China-Singapore Free Trade Agreement.

The Singapore Exchange said it is ready to quote, trade, clear and settle RMB-denominated securities. Last month, the two central banks doubled the size of their bilateral currency swap facility from 150 billion yuan (24.2 billion U.S. dollars) to 300 billion yuan (48.4 billion U.S. dollars).

Meanwhile, the demand for yuan in cross-border trade settlement and yuan-denominated investment products in Singapore has been strong, and several companies already issued yuan-denominated bonds.

Ravi Menon, Managing Director of the MAS, said in the ICBC's inauguration ceremony here that "offshore RMB activities in Singapore will be underpinned by the strong and growing trade flows between the region and China."

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