Agricultural Bank of China New York Branch Successfully Launched the Dollar Clearing Business
On October 21, Agricultural Bank of China New York Branch successfully launched and performed the on-line operations of dollar clearing business. This is the first time the ABC’s history to participate in the global dollar clearing business as a tier one clearing bank.
The settlement of ABC NY Branch dollar clearing business is through the New York Clearing House Interbank Payment System (CHIPS). CHIPS is well known as the world's major clearing house, forms the primary U.S. network for large-volume domestic and international USD payments, where it has a market share of around 96%. After the ABC NY Branch opened, the Branch strived to join CHIPS, eventually becoming its fifty third (53rd) global clearing member.
The online success of U.S. dollar clearing business is of great significance for ABC. On one hand is it will reduce dependence on correspondent path to enhance the creation of business value. Previously, ABC dollar clearing business has been carried out by agents in the United States. After launching the of U.S. dollar clearing business, the first time the NY Branch implements the U.S. dollar clearing business through the New York Clearing House, the settlement effectively promotes the products innovation and enhances the business efficiency. On another hand, it enhances our ability to provide integrated services to customers. Many of ABC’s clients have a large number of U.S. dollar clearing business needs, particularly trade finance clients. U.S. dollar clearing business on-line further enhances the ability of ABC's cross-border financial services; enhancing the consolidated level of service to clients.