PBB offers renminbi services
PHILIPPINE Business Bank, the banking arm of the Yao group, has linked up with Bank of China to offer a renminbi (RMB) transfer system to ride on growing cross-border transactions with China.
“PBB is pleased to offer a gamut of RMB products to the Philippine market, from savings account, time deposit, loan, remittance and trade financing,” Jay Cabalde, senior vice president and treasury head of the bank, said in disclosure to the Philippine Stock Exchange on Wednesday.
“At PBB, our expertise, knowledge and products can help our clients tap the benefits presented by the continued internationalization of RMB and the liberalization of China’s RMB cross border trade settlement scheme,” said Rolando Avante, president and chief executive officer of PBB.
In 2013, the RMB transfer system was jointly developed by Manila branch of Bank of China and Philippine Dealing System (PDS), establishing RMB as the second foreign currency next to the US dollar dollars for real-time domestic clearing and the first currency for real time cross-border clearing in the Philippines.
The transfer system provides bank members and their clients the facility to execute real- time payments in and transfers of, renminbi to domestic and international counter-parties.
This makes PBB the 11th bank in the Philippines to offer renminbi-denominated products and services such as deposits, remittances and trade settlement.
Citing statistics from China’s Ministry of Commerce, PBB noted that China and the Philippines recorded bilateral trade volume exceeding $38 billion in 2013. China is now the country’s third largest trade partner of the Philippines, accounting for 14 percent of total trade as of July 2014. In terms of imports, China was the Philippines’ biggest source, accounting for 13 percent of all shipments in 2014, based on government date.
Given the magnitude and importance of the country’s transactions with China, “it is only appropriate that the Philippines would have a safe and efficient payment and transfer service for renminbi,” the bank said.
PBB started offering in all its 121 branches last February: RMB savings account, time deposit, loans, remittance and trade financing.
