Presented at the Bankers Association for Finance and Trade 1st Asian BanktoBank Forum March 9 10, 20

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(No Transcript)
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Cai Baoguo
Deputy General Manager, Clearing
Center,ICBC 724-hour-real-time Clearing in Asia
and the Pacific Brings Us New Challenges
Presented at the Bankers Association for
Finance and Trade1st Asian Bank-to-Bank
ForumMarch 9 - 10, 2006Bank of China, Shanghai
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• Open Remarks
• Chinese Domestic RMB Clearing Systems
• Chinese Foreign Currencies Clearing Systems
• RMB-linked Global Transfer,Cash Management
• Integrations of RMB and Foreign Currencies
• Clearing systems
• Conclusions

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RMBS CLEARING SYSTEMS OF ICBC
OTHER BANKS INTERNAL NETWORK
PBOCS CLEARING SYSTEM
OTHER BANKS GENERAL LEGER SYSTEM
BRANCH 1 . . . . . . BRANCH n
ICBCS INTERNAL NETWORK
NOVA---ICBCS GENERAL LEGER SYSTEM
NOVAS 19 PERIPHERAL SYSTEMS

• ICBC has 21,000 subsidiary banks, 11,321
  clearing outlets, 2169 foreign currencies
• clearing outlets.
• ICBC has 1172 correspondent banks in 114
  countries and regions, and has 283
• account banks covering 16 currencies.
• Each day, there are about 100 million remittances
  being processed in China, and
• among them, ICBC occupies about 50

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FOREIGN CURRENCIES CLEARING SYSTEMS OF ICBC
OTHER BANKS CORRESPONDENT BANKS
OTHER BANKS GENERAL LEGER SYSTEM
OVERSEAS BRANCH 1 . . OVERSEAS BRANCH n
SWIFT ALLIANCE NETWORK
OVERSEAS BRANCHES DATA CENTER
ICBCS CORRESPONDENT BANKS
CITY BRANCH 1 . . CITY BRANCH n
BRANCHES NOVA RFC PCC
HEAD OFFICE GLOBUS ALLIANCE SSR

• There are mainly two ways for Chinese
  commercial banks to realize cross-country
• foreign currencies clearing
• One is to connect with overseas branches by
  using their intra-network for clearing
• The other is to make use of their overseas
  correspondent banks by way of the SWIFT
• network

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CASH MANAGEMENT WORKFLOW

• Most Chinese commercial banks are developing
  such products as Global Transfer and
• Cash Management to increase clearing speed and
  to improve clearing effectiveness.
• Such products combine the overseas collection
  and payment, account management,
• cash liquidity management, investment and
  financing together to help customers to
• improve cash liquidity and yield.

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INTEGRATION OF RMB CURRENCIES CLEARING

• The integration of separate clearing systems of
  RMB and foreign currencies will break
• the traditional hierarchical layout of the head
  offices and their branches of most
• Chinese commercial banks.
• Such kind of changes will definitely make the
  new integrated clearing system for both
• RMB and foreign currencies more reasonable to
  use and more suitable to customers
• needs.