OREANDA-NEWS. December 30, 2014. In recent years, ICBC has followed customers’ demands and innovated its global cash management service model based on a series of favorable policies issued by competent authorities regarding the integrated operation of cross-border RMB and foreign exchange of multinational enterprises.

In this way, the Bank has helped multinational enterprises cut down financial management cost and prevent capital operation risk and enhance capital operation efficiency, thus satisfying their diversified demands. So far, ICBC has expanded its global cash management services to over 50 countries and territories, serving over 4,000 multinational enterprises.

In terms of service model innovation, with focus on integrated operation of cross-border RMB business, ICBC has actively communicated with competent authorities to upgrade its services based on regulatory requirements by launching the cross-border two-way RMB fund pool function, and provided tailor-made solutions based on customers’ demand. For example, ICBC has established a cross-border two-way RMB fundl pool plan for 80 affiliated companies of a domestic large logistic enterprise, facilitating the headquarter to manage its domestic and overseas RMB funds in a centralized manner.

With focus on integrated operation of foreign exchange, ICBC has provided global cash management service under the integrated operation management model of foreign exchange to customize solutions for enterprises, the first bank with such service in various provinces and cities in China. For example, ICBC established a cross-border fund pool system with three levels comprising domestic master accounts, international master accounts and overseas subsidiaries for a domestic large mining company, facilitating the flow of its domestic and overseas funds. The company can collect and distribute HKD and USD funds in its Hong Kong account through bank-enterprise interlink, corporate Internet banking and over the counter within the foreign debt size and the limit of overseas loans, increasing the efficiency of capital operation.

In terms of innovation in service scope, ICBC has launched its global cash management service overseas and improved its overseas cash management service while providing cross-border cash management services for enterprises. Currently, all ICBC overseas branches or subsidiaries can support cash management services and have set up strong cases of service, winning high recognition from customers.

For example, ICBC overseas institutions developed a European fund pool for a monitor product supplier, helping the customer to manage its affiliated companies in the Netherlands, France, Spain and Italy in an integrated manner. ICBC also developed and launched a fund pool in Spain for a globally well-known lamp supplier. The system incorporated one master account and three sub-accounts of the supplier with ICBC Barcelona Branch and performed day-end zero-balance integration of sub-accounts. ICBC launched a nominal fund pool in Singapore for a petroleum enterprise. The solution ensured liquidity of member enterprises, saved financial costs and brought higher returns by means of quota sharing, combined interest accrual and other functions on the condition that there is no actual transference of account funds. ICBC provided global account information management and fund control services for a local multinational group, covering its member enterprises in Singapore and China. The internal fund transfer and external payment and transfer must be authorized by the headquarter. ICBC also offered cross-border two-way RMB fund pool services connecting China and France for a large electronic group.