RMB Cross-Border Cash Pooling Service from RBS in Shanghai FTZ

The Royal Bank of Scotland (RBS) has unveiled a new renminbi (RMB) cross-border cash pooling service for multinational companies (MNCs) registered in the Shanghai Free Trade Zone (FTZ).

The new RBS service, which is similar in nature to other bank offerings, is intended to allow MNCs to integrate their China onshore RMB cash flow with their regional and/or global cash pools, taking advantage of recent RMB liberalisation and internationalisation moves.

Under the new rules announced by the People’s Bank of China supporting financial liberalisation in the Shanghai FTZ, the RBS cross-border cash pool will be treated as an inter-company loan. The onshore entities using the solution must be corporates registered in the Shanghai FTZ with an overseas affiliate company.

“The new solution permits free fund flow between the Shanghai FTZ companies and their overseas affiliate companies without the cross-border fund transfer restrictions that companies in China are currently facing,” explains Jonathan Jiang, head of global transaction services, China.

“Shanghai FTZ companies with extensive international operations using RBS’s cross-border cash pooling will be equipped with the ability to manage their RMB liquidity across the globe more effectively,” he continued. “MNCs can more easily move RMB funds between their onshore and offshore entities to support their global funding needs, in accordance with their business and treasury agenda [thanks to the solution].”

Supported by RBS’ electronic banking platform the RMB cross-border cash pool can provide clients with a consolidated cash report, detailing the inter-company loan outstanding and interest receivables/payables, as well as other useful data which could aid optimisation and efficiency.


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