(9 July 2012 – Singapore) Singapore will grant Qualifying Full Bank (QFB) privileges to two Chinese banks, allowing one of them to be also authorised as a clearing bank for Renminbi.Singapore’s Ministry of Finance did not name the two Chinese banks. It said that ‘implementation details will be worked out by the relevant financial agencies in Singapore and China in due course.’
Currently, there are three Chinese banks operating in Singapore, including Bank of China, Industrial and Commercial Bank of China and China Construction Bank, none of which are under the license scheme of QFB.
Currently there are eight QFBs in Singapore, which have greater access to the Singapore market than others, because they are able to open more branches and undertake retail deposit business.
Singapore has been pursuing a global offshore yuan market for a long time, during which granting a clearing bank for Renminbi has been a topic in negotiations with China.
China will also expeditiously process all applications made by selected Singapore banks for the establishment of branches and sub- branches in China, subject to their prudential law, regulations and rules, the ministry stated.