In 2016, you can say that the renminbi cross-border pools have been literally swept aside. What used to be a race to accumulate the most number of deals offering unusual bells and whistles to be the first, international banks have very little to show this time.
It is not that banks have lost their enthusiasm to help corporates link the renminbi to regional or global treasury pools. And it is not that the promoters of the internationalization of the renminbi have lost their confidence. It is just the small matter of China’s foreign exchange reserves, which had been declining for much of 2016.
In one of the most poetic expressions of what’s going on, a China-based banker with an international bank describes it as such: “The regulators have a taken a soft pause from renminbi internationalization. I think the pace in which it went was too fast for a developing economy like China.”
In the absence of what was the big theme of the previous two years, banks in North Asia still have plenty to do. The focus has been to optimize their treasury function and to implement end-to-end working capital solutions. Often it involves customization of offerings for MNCs or large local corporates. They are either penetrating deeper into the domestic markets or looking to expand beyond existing ones.
As some global banks step away from pursuing business due internal metrics, a few still remain consistent and visible throughout the region. Taking the top two awards in North Asia are HSBC and Standard Chartered.
HSBC wins the Best in Working Capital and Trade Finance due to its robust network and ability to bank all types of market segments. The bank has a high market penetration in key markets such as China and Hong Kong. Over the review period the bank was involved in several key pre-export financing deals helping to improve the working capital of their clients.
Standard Chartered also picks up a big award in North Asia, notching up the Best in Treasury & Cash Management due to its work with a number of clients in addressing their liquidity issues and cash management concerns. The bank has made an effort to gather additional fintech clients and is able to cater to their needs via its host-to-host connectivity. In the renminbi space, the bank has seen significant growth in its cross-border CNY cash pool and CNY cash pool solutions resulting in the bank being the third-best bank in the Shanghai free-trade-zone in implementing cash pool solutions.
In North Asia’s largest market, China, local banks demonstrated their growing skill in being able to offer sophisticated treasury solutions. China Merchant Bank gets the Best Transaction Bank in China crown, due to its efforts giving local Chinese companies a number of holistic solutions. The bank worked with Alibaba’s member corporates to make payments via banks acceptance bills.
Bank of China maintained its position as a leading Chinese trade bank offering a number of new products such E-chain, an enterprise linked electronic platform. International banks also had their fair share of business in China. Deutsche Bank was a key partner mitigating FX risks for several clients while Standard Chartered showcased its ability to offer sound liquidity solutions.
Hong Kong, as in previous years, was a battleground between several international banks. But it was Standard Chartered that stood out thanks to the bank’s all around effort, especially in the area of cash management, helping several Hong Kong-based clients with their cross-currency payments and FX requirements.
Citi, like previous years, established itself as the MNC/LLC go-to, servicing a number of high-profile clients in Hong Kong. Hang Seng Bank notches the Best in Treasury and Working Capital – SMEs, backed by a series of strong client testimonials highlighting the bank’s supportive work for their respective companies.
In South Korea the likes of BNP Paribas, Deutsche Bank, HSBC and Standard Chartered proved to be key transaction banks in the country, helping several clients with key tasks such as greater cash visibility and better financing for suppliers/distributors. Standard Chartered in particular was an important player helping one particular client out with its export financing in a Middle Eastern currency.
In the highly overbanked and competitive market of Taiwan, Citi stood out due to the bank’s array of services backed by a strong regional network. However, local Taiwanese banks weren’t far behind with institutions such as E.Sun Bank and CTBC showing in-depth knowledge and understanding the pain points of their respective clients. E.Sun Bank was a standout due to the bank’s ability to integrate their technology with the system of their client.
Click here to view the full list of North Asia winners.
Click here to view the full list of Renminbi Bank winners.
Winners will be honoured at a gala dinner on April 25 2017 at the 3rd The Asset Treasury and Trade Summit.
Contact us to attend this networking event and awards ceremony.
Source link : https://www.theasset.com/article/32638/who-sets-the-bar-in-north-asia-transaction-banking-
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Publish date : 2024-07-25 07:03:13
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