Last week, HSBC cemented its position in Asia as a leader in cross-border RMB settlements – but things look less bright back in the UK, where the bank admitted to making an alarmingly small provision for FCA fines.
HSBC Holdings, which is currently being investigated over its role in the foreign exchange price fixing scandal, has put aside just £236m to cover potential fines. This is dramatically lower than the £400m expected, and pales in comparison to the £600m earmarked by JP Morgan and Citibank.
The revelation was ill-received by investors, with share prices falling by 1.7% this morning.
Meanwhile, on Thursday HSBC executed a landmark FX transaction for South Korea by settling a purchase of Chinese renminbi (RMB) against Korean won (KRW) by a Korean trading company. The payment was settled through Korea’s RMB clearing bank, the Bank of Communications in Seoul.
HSBC has a long history of settling cross-border RMB trade, having been the first foreign bank to do so, first in Hong Kong and then across a number of continents. It also arranged the first offshore RMB IPO and, in London, issued the first RMB bond outside China.
Peter Kim, HSBC’s head of markets for Korea, said: “We believe this landmark deal will contribute to accelerating the process of RMB internationalisation in Korea. We will give full support to this key initiative for the Korean government and will continue offering our RMB insight and expertise to all our clients in Korea so they can benefit from the globalisation of China’s currency.”
Despite the data protection regulation being implemented in 2018, 69% of IT decision makers don’t have the backing of their board to achieve GDPR compliance, according to Calligo.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.
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The majority of the region’s 28 member states report that the situation has worsened over the past year, reports business management consultant Verisk Maplecroft.