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China names ICBC as yuan clearing bank in Singapore

Published on Feb 8, 2013 3:40 PM
A customer exits an Industrial and Commercial Bank of China (ICBC) bank branch at night in Shanghai, China, on Jan 29, 2013. China has named ICBC as the clearing bank for offshore yuan business in Singapore. 

BEIJING (REUTERS) - China has named Industrial and Commercial Bank of China (ICBC) , the world's biggest bank, as the clearing bank for offshore yuan business in Singapore.

"Based on the arrangement between the People's Bank of China (PBOC) and the Monetary Authority of Singapore to strengthen cooperation in financial services, the PBOC has decided to authorise ICBC's Singapore Branch as the clearing bank of renminbi business in Singapore," the central bank said in a statement on Friday on its website,

Singapore issued full banking licenses to ICBC and Bank of China in October, moving closer to getting a yuan clearing bank that will let it compete more aggressively with other global financial centres in the growing market for yuan-denominated trades and financial products.

"This may pave the way for the start of an offshore deliverable market (in Singapore) similar to the ones in Hong Kong and Taiwan," Mr Dariusz Kowalczyk, senior economist and strategist for non-Japan Asia at Credit Agricole CIB in Hong Kong, said after the PBOC announcement on Friday.

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