(CIPS) (Phase I) has been successfully launched. As a result, commercial banks will be able to effectively solve the problem of capital payment efficiency caused by time zone differences, so as to further enhance the management capacity of cross-border RMB liquidity.


Cross - border renminbi business

       At present, the renminbi has become China's second largest cross-border payment of currency and the world's fourth largest payment currency. Cross-border renminbi business has become the main channel of RMB internationalization. In the context of the deepening of the internationalization of the renminbi and the "going out" pace of the enterprise, each Chinese-funded bank starts from a strategic perspective and vigorously promotes cross-border renminbi business.
       It can be said that cross-border renminbi business born out of the common needs of both banks and banks. Cross-border RMB business for the bank's own business development provides an important strategic opportunity for banks to expand overseas service tentacles into a strong vitality.
       At the same time, the use of RMB cross-border settlement can help enterprises to prevent exchange rate risk, lock in financial costs, reduce import and export transaction costs, improve efficiency, rich funds across the country to deploy the choice, more and more favored by the enterprise for Chinese enterprises " "And the domestic real economic development has brought new growth momentum.
       It should be said that the current cross-border RMB business innovation and development brought about by the reform of the dividend is accelerating.
       Commercial banks are the basic platform for the development of cross-border renminbi business. In recent years, Chinese banks to speed up the "going out" pace, the overall layout of overseas expansion and expansion, for the RMB cross-border use provides an important channel and carrier.
       Statistics show that as of the end of 2014, large banks overseas network covering 50 countries, the establishment of more than 150 foreign institutions, the total number of branches of more than 1,100. Industry as a whole international competitiveness and influence continue to improve, and become a pull of Chinese banks overseas assets and earnings growth an important factor.
       In the case of ICBC, for example, the cross-border RMB business volume of ICBC Group in 2004 has exceeded 3.5 trillion yuan. Since the start of the cross-border RMB business in 2009, ICBC has accumulated more than RMB 8 trillion in cross-border RMB business, An annual increase of more than 200%. Before the start of the cross-border RMB pilot in 2009, the RMB business contributed almost zero to ICBC's overseas institutions. However, the RMB business now contributes more than 20% to the total assets, liabilities, income and profits of ICBC's overseas institutions. More than 60%, and continue to expand.
       It is foreseeable that this year, "landing all the way" national strategy to accelerate the layout of the internationalization of Chinese banks at the same time, will also continue to promote the process of internationalization of the RMB. To carry out the globalization and realize the cross-border development has become the consensus and development of Chinese banks, in this context, the development of cross-border RMB business and the integration of Chinese banks in their own internationalization process will be further deepened.
       From the banking point of view, more financial products have been developed, including cross-border RMB deposits and loans, remittances, settlement, financing, liquidation, personal cross-border, capital and derivative product portfolio, internal and external innovation dual currency letter of credit, cross-border RMB structured payment, direct financing, risk loans and other products. Some banks have also completed overseas investment in Renminbi, cross-border RMB leasing projects, cross-border RMB two-way pool, free trade area cross-border RMB loans and many other business, for a number of foreign institutions to complete the RMB foreign direct investment.
It is particularly worth mentioning that the rapid development of cross-border renminbi business will help optimize the long-term business structure of Chinese banks.
       On the one hand, cross-border renminbi business will accelerate the diversification of Chinese banks' RMB asset business. Whether it is a regular project or a capital and financial project, the provision of corresponding cross-border and offshore RMB trade finance and credit business for both domestic and foreign enterprises has been and will continue to be a new important growth point for the asset business of Chinese banks.
       On the other hand, cross-border renminbi business for commercial banks to develop intermediary business to provide a broader space. Cross-border renminbi business to promote the RMB derivatives trading and other financial business development, but also to promote the investment banking business in overseas expansion. At the same time, residents' demand for cross-border use of RMB, enterprise import and export trade and cross-border investment and financing and other large-scale demand for payment and payment of funds and large-scale multinational companies to the two-way allocation of global capital needs, so that Chinese banks integrated cash services expansion. Which are conducive to the accelerated growth of Chinese banks to high-yield, light capital of the direction of transformation.
       But we should also be soberly aware that the expansion of cross-border renminbi business risk management and control of banks put forward new higher requirements. The innovation and development of cross-border renminbi business has made the risk of credit, market, liquidity, supervision and compliance of Chinese banks more complicated, and Chinese banks have not yet fully formed the global risk management ability.
       In the context of economic globalization, the diversification of corporate financing forms, channel diversification, customer credit risk across the region, cross-line transmission speed, the rise of the domestic bank bad rate makes the quality of foreign institutions of credit assets are also facing the test. The development of cross-border renminbi business makes the balance of assets and liabilities of Chinese banks more diversified, the more serious currency and duration mismatch, the overseas liquidity risk faced by Chinese banks and the overall liquidity risk of the group are likely to become more and more obvious. Chinese banks are also subject to strict regulation and different anti-money laundering, taxation, labor and other laws and regulations, which have made commercial banks face higher regulatory risks and costs.
There is no doubt that the development of cross-border renminbi business will occupy an important position in the overall strategy of internationalization of Chinese banks. And to promote the development of cross-border renminbi business, to see opportunities at the same time calmly think and make a reasonable strategic arrangements. Speed up the cross-border RMB business innovation, improve the cross-border RMB business product line at the same time, improve the cross-border RMB business development to match the risk management system.