OCBC, Bangkok Bank, First Abu Dhabi join Hong Kong’s US$14 billion offshore yuan scheme
Leading banks from Southeast Asia and the Middle East are taking part in the programme, underscoring the city’s push as an offshore yuan hub
Leading banks from Southeast Asia and the Middle East – including OCBC, Bangkok Bank, First Abu Dhabi Bank and Qatar National Bank – have joined the Hong Kong Monetary Authority’s (HKMA) expanded yuan liquidity facility, underscoring the city’s push as a global offshore renminbi (RMB) business hub.
The HKMA said on Monday it had doubled the quota it allocated to banks under the Renminbi Business Facility to 100 billion yuan (US$14 billion) from December 1, the maximum allowed under the scheme.
The number of lenders under the programme expanded to 40 from 25, with each receiving a quota according to their client base and demand, the HKMA said.
This marked the first time Middle East banks joined the scheme. First Abu Dhabi Bank is the largest bank in the United Arab Emirates.
More Southeast Asia lenders were also added, including the region’s second-largest lender, Oversea-Chinese Banking Corporation (OCBC) and its local arm OCBC Hong Kong, as well as Thailand’s largest lender Bangkok Bank.
Other new participants include ING Bank, Taiwan’s Bank SinoPac, and Hong Kong-based Dah Sing Bank and CMB Wing Lung Bank.