NEW YORK, May 20, 2016 /PRNewswire/ -- Industrial and
Commercial Bank of China (ICBC) has taken the first steps to enable
institutions to issue and clear financial products denominated in
Chinese Renminbi (RMB) in the U.S.
ICBC is the largest bank in the world by total assets, tier 1
capital and pre-tax revenue. ICBC's New York Branch issued an RMB-denominated
certificate of deposit (CD) today which will be settled in the U.S.
Trading and settlement of the RMB-denominated CD opens the door for
other borrowers looking to issue RMB-denominated securities in the
U.S. This will further strengthen the financial cooperation between
the two countries, according to a working group of prominent
financial leaders.
The Working Group on U.S. RMB Trading and Clearing aims to
evaluate opportunities to develop and expand the trading, clearing
and settlement of RMB in the United
States. The Group is chaired by Michael R. Bloomberg, with Mary Schapiro serving as Vice-Chair and
Thomas J. Donohue, Timothy F. Geithner and Henry M. Paulson, Jr. serving as Co-Chairs.
ICBC, DTCC and BNY Mellon are members of the Working Group.
ICBC Chairman Jiang Jianqing will
meet today with Bloomberg to discuss the new product. "The launch
represents a significant milestone in serving to meet the growing
demands among investors in the United
States and around the world to have access to the RMB," said
Jiang. "The RMB is an increasingly important part of the global
payments system, as payments in this currency are growing faster
than overall global payments in all currencies."
"I'm pleased to see members of the Working Group taking this
concrete step to further develop RMB markets in the United States," said Bloomberg. "I'm
confident this will be the first of many developments to come."
The value of RMB payments increased 18.46 percent from
February 2016 to March 2016, compared with a 10.67 percent
increase in all payments currencies during the same period,
according to SWIFT. In March, SWIFT reported that the RMB was the
fifth most active currency for global payments by value with a
share of 1.88 percent, a slight increase from 1.74 percent in
February 2016.
The fixed rate CD is valued at 500
million RMB, has a 31-day maturity and is the first
RMB-denominated financial product eligible to be settled through
The Depository Trust Company, a wholly owned subsidiary of The
Depository Trust & Clearing Corp (DTCC). Previous issuances of
RMB-denominated CDs by New York branches of Chinese banks were
settled through Euroclear in Europe. BNY Mellon Corporate Trust is the
issuing and paying agent on the CD.
"Our Corporate Trust team looks forward to its future
collaboration with ICBC and DTCC and providing its solutions for
trading, clearing and settlement of RMB in the U.S." said
Brian Shea, Chief Executive Officer
of Investment Services at BNY Mellon. "This innovation paves the
way for us to further develop connections into major RMB trading
and clearing centers across the world."
"DTCC is proud to support the efforts of the RMB industry
working group as it looks to increase financial cooperation and
activity between the U.S. and China," said Michael
Bodson, Chief Executive Officer of DTCC. "The issuance of
the RMB-denominated CD in the U.S. is an important milestone and we
are honored to play a critical role in this initiative, in
partnership with ICBC and BNY Mellon."
Notes to editors
Industrial and Commercial Bank of China
Industrial and Commercial Bank of China was established on 1 January 1984. On 28
October 2005, the Bank was wholly restructured to a
joint-stock limited company. On 27 October
2006, the Bank was successfully listed on both Shanghai
Stock Exchange and The Stock Exchange of Hong Kong Limited. Through
its continuous endeavor and stable development, the Bank has
developed into the top large listed bank in the world, possessing
an excellent customer base, a diversified business structure,
strong innovation capabilities and market competitiveness and
providing comprehensive financial products and services to 5,320
thousand corporate customers and 496 million personal customers.
The Bank continued to promote reform, innovation and operation
transformation.
The Bank's assets and liabilities business kept stable
profitability during the structural adjustment. Retail banking,
asset management and investment banking became important engines
driving the profit growth, and the development of internet-based
finance with leading edge gave impetus to the fundamental reform on
operation and management models and service methods. The pattern of
internationalized and diversified operation was further improved,
covering 42 countries and regions, and overseas operations and
comprehensive subsidiaries of fund, insurance and leasing
contributed more to the Bank's profit-making. In 2015, the Bank was
named the "Best Emerging Markets Bank" by Euromoney, and ranked 1st
place among the Top 1000 World Banks by the Banker and the Global
2000 listed by the US magazine Forbes for the third consecutive
year.
BNY Mellon
BNY Mellon is a leading provider of corporate trust services to the
debt capital markets, offering customized and market-driven
solutions to investors, bondholders and lenders. As of March
31, 2016, BNY Mellon Corporate Trust served as trustee and/or
paying agent on more than 58,000 debt-related issues globally. The
corporate trust business utilizes its global footprint and
expertise to deliver a full range of issuer and related investor
services including trustee, paying agency, fiduciary, escrow, and
other financial services. BNY Mellon acted as trustee for the first
Singapore-cleared offshore RMB
bonds and has extensive connectivity into major RMB trading and
clearing centers in the United
States, Singapore,
Hong Kong and London.
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of March 31, 2016, BNY Mellon had $29.1 trillion in assets under custody and/or
administration, and $1.6 trillion in
assets under management. BNY Mellon is the corporate brand of The
Bank of New York Mellon Corporation (NYSE: BK). Additional
information is available on www.bnymellon.com. Follow us on Twitter
@BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for
the latest company news.
The Depository Trust and Clearing
Corporation
With over 40 years of experience, DTCC is the premier post-trade
market infrastructure for the global financial services industry.
From operating facilities, data centers and offices in 16
countries, DTCC, through its subsidiaries, automates, centralizes,
and standardizes the post-trade processing of financial
transactions, mitigating risk, increasing transparency and driving
efficiency for thousands of broker/dealers, custodian banks and
asset managers worldwide. User owned and industry governed, the
firm simplifies the complexities of clearing, settlement, asset
servicing, data management and information services across asset
classes, bringing increased security and soundness to the financial
markets. In 2015, DTCC's subsidiaries processed securities
transactions valued at more than US$1.5 quadrillion. Its depository provides
custody and asset servicing for securities issues from over 130
countries and territories valued at US$45.4
trillion. DTCC's global trade repository maintains
approximately 40 million open OTC positions and processes roughly
280 million messages a week. To learn more, visit us at
www.dtcc.com or follow us on LinkedIn, Twitter and
YouTube.
Contacts:
Industrial and Commercial Bank of China (ICBC)
Tian Terence Deng
+1 646 873 9011
tian.deng@us.icbc.com.cn
BNY Mellon
Mike
Dunn
+1 732 667 2678
mike.g.dunn@bnymellon.com
Cheryl Krauss
+1 212 635 8176
Cheryl.Krauss@bnymellon.com
The Depository Trust and Clearing Corporation
(DTCC)
Kristi Bartlett
+ 1 617 880 6770
kbartlett@dtcc.com
Working Group on U.S. RMB Trading and
Clearing
Jill Watanabe
+ 1 212-617-1610
jwatanabe11@bloomberg.net
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SOURCE BNY Mellon