Commonwealth Bank of Australia (ASX:CBA), Australia’s largest bank has been granted authorization for a Renminbi license, enabling it to expand trade and investment for clients doing business in mainland China.
A statement from the bank indicated its Shanghai branch has been granted an RMB licence by the Chinese Banking Regulatory Commission, which CBA said will help widen the “Australia-China corridor”.
CBA executive for international institutional banking Mr. Rickward continued: “The RMB licence increases our ability to deliver holistic tailored solutions that maximize business opportunities and minimize risk for our cross-border clients…
CBA is committed to China and has been closely following the development in RMB and are a foundation member of the Australia ASX-Bank of China RMB settlement platform launched last year. We expect to see ongoing developments in this space as companies understand the benefit of using RMB ranging from cost savings, better trade terms and much improved settlements cycle.”
CBA opened its first institutional banking branch in Shanghai’s Pudong District in 2010, followed by a second branch in Beijing in late 2013.
A dedicated RMB solutions team headed by Sangeeta Venkatesan has been established to assist clients understand the solutions available to them when dealing in the Australia-China corridor and the benefits associated with using RMB as a trade or investment currency.
To view the official release, click here.