The Industrial And Commercial Bank Of China

1537 Words7 Pages
The Industrial and Commercial Bank of China (ICBC)has been designated as the first RMB clearing commercial bank in Luxembourg, which is one of the world 's financial centres on September 16, 2014 (ICBC,2014).The Clearing bank is a commercial bank that is part of a network of banks that can clear cheque for its clients, regardless of whether cheque check originates from the same commercial bank (Language Forums).This achievement marked a major step for ICBC to create a global RMB clearing network across different time zones, while significantly improving the transfer efficiency on a global scale and convenient use of RMB,effectively broaden the channels for RMB funds which are used around the world.The reason for this success can be illustrated by two main points which are the strong domestic financial strength and outstanding overseas market cooperation.This essay will discuss the reasons for this success in detail by comparing with other Chinese commercial banks and then it will analyze whether this achievement will continue in the future. The most important reason for achieving this privilege is the powerful financial strength of ICBC. ICBC is the world’s biggest RMB bank,with $3.1 trillion in total assets, far more abundant than the China Construction Bank (CCB) which is the second largest RMB bank with $2.6 trillion in total assets (Bank around the world,2014). In order to increase its reserves and yields, ICBC committed to enlarging it scale and scope
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