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Implementing Efficient Treasury Management Services in China

by Xu Yan,General Manager, Payments and Cash Management Department, ICBC

With the ever accelerating growth of the global trade and increasing expansion of business operation areas, it has been, for a long time, an important part of business development strategy for multinational corporations aspiring for development after the financial crisis to formulate a correct global treasury management strategy. In light of this, the Chinese market is undoubtedly an important factor in this strategy, which is taken into account by treasurers around the world.

After years of reform and development, China’s financial environment has become more and more open and suitable for business treasury management operations. This provides an unprecedented platform for businesses to engage in economic activities in the country. In such an increasingly open environment, Chinese banks have taken an active part in treasury management businesses, contributing to their growth and enabling them to become more and more mature. At present, the vast majority of national commercial banks in China have already launched their cash management services, which are based on RMB and foreign settlement and liquidity management services. Some banks have even launched their own cash management brands.

As a pioneer in cash management services and the market leader in China, the Industrial and Commercial Bank of China has been committed to providing professional treasury management services for its clients. As far as the system is concerned, the bank was the first in the industry to put in place a centralised system for data storage and processing. As its core business process systems, the bank has implemented a full function national banking system (NOVA) and an integrated business processing system for international institutions (FOVA) to satisfy its domestic and international business processing and product innovation needs. The bank has also set up a multi-bank cash management service platform, which integrates its domestic and international transactions and also enables partner banks to achieve two-way interactions. The platform has helped the bank to provide global (regional) cash management services for its domestic and international customers. As far as its products are concerned, the bank keeps enriching and optimising its existing product portfolios, which cover each production and operational area of a business. It is also intensifying its innovation efforts to create and promote its competitive premium products.