RBS scheme to help cross-border cash flow

Under the new rules announced by China's central bank,the People's Bank of China,cross-border cash pools within the Shanghai FTZ will be treated as an intercompany loan.The onshore entities able to use such solution must be corporates registered in the Shanghai FTZ with an overseas affiliate company.

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RBS's cross-border cash pooling is supported by the bank's advance electronic banking platform that can provide clients with a consolidated cross-border cash pooling report,detailing the inter-company loan outstanding and interest receivables and payables,the bank said.

In December,Bank of China successfully completed the two-way cross-border RMB cash pool business for Yihai Kerry (Shanghai) International Trading Co.Ltd,which marked the first two-way cross-border yuan business for the Shanghai FTZ.This cash business between BOC and Yihai Kerry International Trading achieved cross-border income and the payment of 100 million yuan ($16 million) and 150 million yuan respectively.

In January,HSBC and Citibank both launched their cross-border yuan cash pooling services,and Deutsche Bank launched its service in Feburary.Citi's service was pioneered for the pharmaceutical company Roche,and HSBC for Dover,a manufacturer of diversified industrial products.

Manfred Schmoelz,Asia Pacific Head of Global Transaction Services of RBS,said that the bank's new cross-border cash pooling solution will help to promote greater use of yuan offshore,and support the Chinese government's yuan internationalization agenda.

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