With developing relationship between China and Russia VTB Group is seeing considerable increase in the number of RMB operations — 1H2016 vs. 1H2015 saw almost 70% increase in the number of RMB remittances processed, which accounted for more than 5,000 operations with the volume exceeding RMB 45bn. The bank is boosting its financial services in the Asian region on all fronts. It relates, first of all, to structuring
VTB has an extensive correspondent banking network in the mainland China (including Shanghai Free Trade Zone) and Hong Kong to facilitate direct settlements in RMB and in other currencies. Being connected to Chinese local payment system CNAPS and international payment system CIPS, VTB services mutual correspondent accounts in local and 3rd -country currencies with the largest financial institutions in the region to provide the most optimal payment routes for the clients.
VTB has traditionally been the top bank to facilitate
On the back of increasing trade flows, we have also seen growing demand for global market products, e.g. FX, hedging instruments, money market lending etc. The volume of traded RMB swaps went up by more than 3.5 times in 1H2016 vs. 1H2015.
VTB Bank is also taking a leading position among Russian banks in the Chinese gold market. The bank has obtained membership license at Shanghai Gold Exchange International Board and fully completed the related settlement infrastructure in Shanghai FTZ to get access to gold trading. In April 2016 VTB also dispatched its first batch of gold to China under the Consignment Agreement with one of the biggest Chinese banks, becoming the first Russian bank to start the direct supply of physical gold to the Chinese market.
VTB Bank has additional advantages in servicing trade between Russia and China, by virtue of its own licensed branch in Shanghai. VTB Shanghai is the only operational branch of a Russian bank with licenses to conduct RMB business in China. It’s the leading market maker in
Apart from traditional banking services in China VTB Bank is pioneering new products — VTB Bank has become the first Russian bank to receive PBoC’s license to access secondary market trading on China Interbank Bond Market, allowing VTB’s clients to invest in local Chinese debt securities. The required operational infrastructure is now being tested.