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.
Today CGI and GTNews have announced the launch of the fifth annual Transaction Banking survey report, which offers which offers critical insight into the corporate-to-bank relationship.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.
Treasurers are being expected to do more work with fewer resources than ever before, so it is little wonder that the automation of day-to-day operations was highly discussed on the second day of EuroFinance, the annual treasury event held in Barcelona this week.
Chicago based Treasury Management System (TMS) vendor GTreasury and Sydney based risk and treasury management vendor Visual Risk have joined forces in a strategic alliance to ... read more