Business News
China grants Bangkok Bank yuan-clearinghouse license
Sep 2, 2009, 2:50 GMT
Bangkok - China has granted Bangkok Bank PCL, Thailand's largest commercial bank, an exclusive license to clear yuan transactions in the country, media reports said Wednesday.
The move was part of China's attempt to expand the role of its renminbi currency in Asia, Bangkok Bank senior executive vice president Prasong Uthaisangchai told The Nation newspaper.
'Hong Kong will become the first yuan-clearing centre for China,' Prasong said. 'There are now several banks in Hong Kong that serve in this capacity, but in general, I think China wants to have only one bank in one market.'
Bangkok Bank, Thailand's largest commercial bank in terms of assets, has four branches in mainland China and a network of branches throughout South-East Asia.
As the sole yuan-clearing centre in Thailand, the bank may collect yuan deposits and remit yuan abroad.
Retail and corporate customers seeking to set up yuan accounts at Bangkok Bank must be non-residents, such as Chinese companies wishing to settle their trade transaction in the Chinese currency, Prasong said.
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