Yuan Hub

Bank of Communication Seoul Branch office.
Bank of Communication Seoul Branch office.

 

The Seoul branch of the Bank of Communications of China has become the nation’s first and only bank to establish a yuan clearing system. The bank established this system to meet the mounting volume of business and clear Chinese yuan and bond payment in real time. Connected with the China National Advanced Payment System (CNAPS), which is run by People's Bank of China, the yuan clearing bank will clear cross-border yuan transactions and payments.

Considering the increasing yuan clearing and settlement,SK Holdings C&C set up the foreign institution connected system of the Bank of Communications Seoul branch. The company has enabled a concurrent payment service for direct transactions of yuan and/or bond transactions with yuan by directly connecting the Bank of Communications’ yuan clearing system with the Korea Securities Depository’s network.

The real-time payment has resolved ”risks” due to a time difference and enabled safe and prompt yuan transactions. Moreover, it has constructed the anti-money laundering system that monitors suspicious yuan transactions and automatically report them.

SK Holdings C&C has also developed the Internet banking system that provides the banks with real time transactions, balance, deposit account balance, exchange rate and deposit account interest inquiry services, dramatically improving the convenience of clearing and settlements with participating financial institutions.

Baek Hyung-duk, director of the strategic project sector of SK C&C, said, “The company’s new system will better use of the Bank of Communications’s clearing and payment system. We are expecting that it will help South Korea to be a “hub” of yuan.”

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