The Commonwealth Bank's Shanghai branch has been awarded a renminbi licence by the China Banking Regulatory Commission.
CBA's new renminbi licence will broaden the bank's involvement in the "fast-growing and deep trade corridor" between Australia and China, said the statement.
"The licence complements CBA's Beijing and Shanghai branch offering and the bank's presence in the recently expanded Shanghai Free Trade Zone," CBA said.
Executive general manager international for institutional banking and markets, James Rickward, noted CBA's clients can already open accounts, settle trades in RMB and execute RMS electronically using the CommBiz Markets platform.
"The RMB licence increases our ability to deliver holistic tailored solutions that maximise business opportunities and minimise risk for our cross-border clients," Mr Rickward said.
"With growth in trade and investment flows expected to accelerate between China and Australia as a result of the China free trade agreement, CBA is now well positioned to support our clients in our specialist sectors of natural resources, utilities, transport, and financial institutions.
"CBA is committed to China and has been closely following the development in RMB and are a foundation member of the Australia ASX-Bank of China RMB settlement platform launched last year.
"We expect to see ongoing developments in this space as companies understand the benefit of using RMB ranging from cost savings, better trade terms and much improved settlements cycle," Mr Rickward said.
Wealth management relationships are under threat as clients look to switch providers driven by the impact of the royal commission. ...
S&P Dow Jones has announced a new addition to its global ESG index using enhanced ESG scores and granular data. ...
Investor confidence is on the rebound and the ASX hit a 12-year high on Monday. But it’s not all good news for the Australian economy. ...