May 31, 2011
Commerzbank launches RMB accounts for corporate customers in Germany
New options in business transactions with China
Commerzbank, Germany's leading bank for private and corporate customers, today announces the launch of renminbi (RMB) accounts for corporate customers in Germany. Corporate customers now have the ability to conduct commercial transactions in RMB when making cross-borders payments directly to China from Germany and accepting payments from China.
"This new service is a very valuable addition to our offering for corporate customers participating in the increasingly important Sino-German business relationships," explained Martin Fischedick, Divisional Board Member Corporate Banking at Commerzbank.
This new offering is in addition to the RMB account services that Commerzbank already provides through its branches in Shanghai, Beijing and Hong Kong. With this new service, Commerzbank now provides a whole range of documentary foreign transactions in RMB - the opening and settlement of letters of credit, the settlement of collection, and the issuance of bank guarantees.
As one of the leading banks for international corporate customers, Commerzbank helps its clients to capitalise on new business opportunities in the Chinese market. Chinese companies are displaying an increasing interest in concluding their business transactions in RMB in order to mitigate currency risk. By using RMB trade settlement, German companies, who do business with Chinese corporates, can also take advantage of pricing benefits, hedge the currency exchange rate accordingly with Commerzbank, and consolidate and develop their market position.
With the expansion of the "RMB Settlement Scheme" (RTS) in July 2010, the Chinese government allowed companies in 20 provinces of China to conduct import and export transactions in RMB, as well as make and accept cross-border payments worldwide in RMB on the basis of a business transaction with a foreign country.
In addition to this, Hong Kong functions as a "RMB offshore centre" and is regarded as a pioneer for the internationalisation of the RMB. In Hong Kong, an interbank market has been established with CNH (offshore CNY). The CNH is traded as a freely convertible currency, and in contrast to regulated onshore trading, foreign exchange transactions and investments in time deposits and bonds are allowed in CNH. Commerzbank already offers its customers these trading capabilities in Hong Kong.
Asia is the most significant market for Commerzbank's corporate customer business after Western Europe. In this respect, Commerzbank's corporate customer business (Mittelstandsbank) is geared towards German SME customers doing business in Asia. On the other hand, Commerzbank also advises Asian companies who are looking to do business in Germany. Commerzbank therefore offers both these types of customers an extensive product range, which encompasses cash management and international business, as well as credit business, hedging products, and consulting on the purchase of companies.
In addition to Mittelstandsbank, Commerzbank is represented in Asia through its investment banking arm Corporates & Markets (C&M). C&M offers corporate customers and institutional clients in Europe, Asia and the USA strategic consulting, giving access to financing on the capital markets, and providing a wide range of investment and risk management products in all important asset classes. C&M employs around 100 staff in Asia and is represented in the most important financial centres Hong Kong, Singapore, Tokyo, Beijing and Shanghai.
Press contact:
Martin Halusa: Tel. +49 170 8528638
Martin Ziemer: Tel. +86 21 38559713
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About Commerzbank
Commerzbank is a leading bank for private and corporate customers in Germany. With the segments Private Clients, Mittelstandsbank, Corporates & Markets, Central & Eastern Europe as well as Asset Based Finance, the Bank offers its customers an attractive product portfolio, and is a strong partner for the export-oriented SME sector in Germany and worldwide. With a future total of some 1,200 branches, Commerzbank has one of the densest networks of branches among German private banks. It has above 60 sites in 50 countries and serves more than 14 million private clients as well as one million business and corporate clients worldwide. In 2010 it posted gross revenues of EUR 12.7 billion with some 59,100 employees.
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Disclaimer
This release contains statements concerning the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of the company as well as expected future net income per share, restructuring costs and other financial developments and information. These forward-looking statements are based on management¿s current expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Commerzbank has no obligation to periodically update or release any revisions to the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.
