DBS becomes first renminbi-clearing Singaporean bank

DBS has been appointed by China's central bank as the second renminbi clearing bank in Singapore. The Singapore branch of the Industrial and Commercial Bank of China became the city-state's first RMB clearing bank in 2013.

In a statement released on Monday, DBS said, as the first Singaporean bank to receive this nature of approval from the People's Bank of China (PBOC), it represents a major step forward in its RMB capabilities. The bank has also been authorized to operate in the onshore over-the-counter bond market.

Taken together, these approvals bolster DBS' ability to offer more comprehensive and competitive RMB services as clients increasingly look to diversify currency risk. They also allow the bank to provide more efficient RMB settlement services and support broader cross-border usage, helping to deepen investment connectivity and foster financial innovation across the region.

Lim Soon Chong, group head of global transaction services at the bank, said: "DBS is honored to have been appointed by the PBOC to play a bigger role in advancing financial cooperation between Singapore and China.

"As companies seek to build financial resiliency and diversify their currency risk, this appointment ensures that we can deliver deeper liquidity and enhanced settlement capabilities to multiple clients, including corporates, investors and respondent banks."

Andrew Ng, group head of global financial markets at DBS, added: "Being appointed as an RMB clearing bank significantly strengthens our ability to support clients participating in China's financial markets.

"This will create a more seamless bridge between what we can do for them in on- and offshore RMB markets, further facilitating regional economic activities, increasing client choices and enabling greater market access for issuers and investors alike — allowing them to tap RMB opportunities with greater confidence and agility."

DBS is among the leading foreign underwriters in China's panda bond market, helping international issuers tap RMB funding. At the same time, it enables offshore investors to access onshore RMB-denominated assets through multiple channels, including Bond Connect, interbank bond market settlement agency services, and the Qualified Foreign Institutional Investor and RMB Qualified Foreign Institutional Investor programs.

As a result, it plays a significant role in supporting cross-border RMB investment and further integrating China's capital markets with the global financial system.