Inauguration of Canadian RMB Clearing Bank and Trading Hub
ICBK officially inaugurated the Canadian RMB Clearing Bank and Trading Hub at a ceremony on March 23, 2015. The Bank Group has preliminarily established a sustainable world-wide “24/7” real-time RMB trading and clearing network. This network is to encourage trades between Canada and China, as well as advance the Bank Group’s offshore RMB service.The Industrial and Commercial Bank of China (Canada) was designated as the RMB clearing bank in Toronto, according to an announcement made by the People’s Bank of China (PBOC) on November 9, 2014.
During the ceremony, the Bank Group’s Vice President, Mr. GU, stated that the Bank Group would fully utilize Canada’s geographic and multiple time-zone advantages in support of the“24/7”RMB clearing system.For example, ICBK will take over and continuously provide RMB clearing services when the Headquarter and Singapore Branch capital market are closed. ICBK has established two RMB clearing teams in Toronto and Vancouver, between which there is a three hour time difference, so that the Vancouver center can extend the RMB trading hours for three hours after the Toronto market is closed. Hence, the Bank Group’s RMB clearing network has covered every time zone and constructed an actual 24/7 active clearing platform. In addition, the Bank Group will continuously exercise targeted regulation, stimulate market activity, shore up weak spots, and boost the real economy between Canada and China.
China and Canada are both located along the Pacific coast, and have highly complementary economies. Over recent years, China-Canada bilateral relations have developed significantly. Currently, China is Canada’s second largest trading partner, second largest exporter, and the second largest importer. The FIPA agreement between China and Canada was implemented on Oct 1, 2014, and will further promote bilateral investments and deepen economic cooperation and the strategic partnership.
ICBC is the world’s largest RMB bank by RMB capital assets and RMB clearing volumes. It is also the first Chinese bank that centralizes both onshore and offshore RMB clearing and financing services. To date, the Bank Group has over 330 subsidiaries and branches across 41 countries and regions. Ever since the pilot cross-border RMB clearing project started in 2009, the Bank Group has processed over ¥8000 billion cross-border RMB services, and opened 543 cross-border RMB clearing accounts with a cross-border RMB clearing network that covers 76 countries and regions.
ICBK is seeking to steadily expand the RMB service network to North America, in order to establish a multi-channel, varied and high-speed platform for cross-border RMB services. Such a RMB business line is dedicated to serve personal, corporate and institutional clients, and is capable of providing RMB exchange, RMB deposits and remittances, RMB trade financing, RMB offshore inter-bank lending, and foreign exchange settlement and sales of RMB.