Deutsche Bank today announced that it has been selected as a direct participating bank in China’s newly launched Cross-Border Interbank Payment System (‘CIPS’), as part of the first batch of approved participants.
Initiated by the People’s Bank of China (PBoC) and run by the CIPS Clearing Company, CIPS provides an independent cross-border payment and clearing system connecting both onshore and offshore clearing markets and participating banks. CIPS uses global payment standards and enables same day clearing across Asia, Oceania, Europe and other time zones through extended operating hours.
Nineteen banks have been named direct participants of CIPS, including four major Chinese banks, and HSBC Bank (China), Citibank China and Standard Chartered China, all of which are allowed to open accounts with CIPS and receive services directly.
“CIPS is an important milestone in the internationalization of the yuan,” said Fan Yifei, deputy governor of the People’s Bank of China, the central bank.
Carl Wegner, Managing Director, Greater China Head of Global Transaction Banking at Deutsche Bank, said: “By integrating the existing Renminbi cross-border payment and settlement channels, CIPS will improve the efficiency of cross-border clearing to meet the increasing demand for Renminbi worldwide. CIPS will also enhance and facilitate the security of transactions, thereby benefiting the industry as well as our clients.”
Feng Gao, Managing Director, Chief Country Officer of Deutsche Bank China, added: “We are proud to be one of the few foreign banks chosen to participate in CIPS. This new clearing system represents important additional financial market infrastructure for cross-border payments and bodes well for the ongoing internationalisation of the currency. We look forward to continuing to work with PBoC and our clients to facilitate Renminbi cross-border payments.”
To see the official release of Deushe Bank on CIPS, click here.