The CIPS is a clearing system for cross border RMB payments.
With the official launch of the Cross-border Interbank Payment System (“CIPS”) by The People’s Bank of China (“the PBOC”) today, The Bank of East Asia, Limited (“BEA”) announces that its wholly-owned subsidiary, The Bank of East Asia (China) Limited (“BEA China”) is among the first batch of foreign banks to have been qualified as a direct participating bank of CIPS.
The CIPS is a clearing system for cross border Renminbi (“RMB”) payments. BEA China has already successfully completed its first cross border remittance to Hong Kong through CIPS for a customer in the chemical industry.
Dr. David K.P. Li, Chairman & Chief Executive of BEA and Chairman of BEA China, said, “the launch of CIPS is a key infrastructure that can effectively advance RMB internationalisation. BEA China’s ability to participate in CIPS directly will enable it to significantly expand its business in RMB clearing. It will allow us to offer our clients a convenient payment channel, with shorter remittance times and greater efficiency in transactions.”
BEA China is the only Hong Kong-invested foreign bank among the 19 banks currently qualified for direct participation in CIPS. CIPS was developed by the PBOC to provide cross border RMB payment services covering trade, capital account and payment settlement for individuals, corporations and financial institutions.
CIPS participants include direct participants and indirect participants. Under the new clearing system, direct participants can settle RMB cross border payments directly through CIPS, while indirect participants can only access CIPS through the direct participants.
By leveraging BEA Group’s extensive network including the Head Office and branches in Hong Kong and overseas outlets, the Bank and its Mainland subsidiary will make the best effort to offer effective banking services to customers for their growing cross border operations.
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