Singapore's largest banks ink MOUs to boost connectivity with Chongqing

Singapore's biggest banks UOB, OCBC, and DBS, signed a deal with Chinese firms to boost financial connectivity to the city of Chongqing.

MTI, STB seek feedback on amendments for travel agents law
Picture for representation Reuters

Financial players spearheaded by the Monetary Authority of Singapore (MAS) are eyeing deeper collaboration with the Chinese city Chongqing to discover new frontiers of connectivity and innovation.

During the second Singapore-China Financial Conference (SCFC) in Chongqing, financial powerhouses from both cities discussed areas of financing infrastructure projects under the Belth and Road initiative, promoting cross-border asset securitization, and establishing insurance and risk management solutions.

Also Read: Payments Council to spearhead development of common QR Code for Singapore

The SCFC is the flagship event under the Chongqing Connectivity Initiative (CCI) Financial Services pillar.

"The CCI Financial Services pillar has made remarkable progress in a short period of time, judging by the deals completed and collaborative projects being undertaken," MAS Managing Director Ravi Menon said in a statement.

Meanwhile, Chongqing Vice Mayor Liu Guiping said he hopes that the SCFC has created a high-level interaction platform between Chongqing and Singapore's financial regulatory

bodies, to facilitate financial institutions and corporates from both sides to jointly create a mutually beneficial cooperation framework.

"This will promote a market oriented financial industry, increase efficiency in allocating financial resources and achieve greater and more effective integration between the Western Region of China and Southeast Asia," he mentioned.

Three of Singapore's largest banks signed Memoranda of Understanding (MOUs) with financial institutions and corporates in the allied city.

The first deal was signed by DBS Bank and Southwest Securities. This MOU lays down a new territory for cooperation between DBS and an onshore securities firm in China.

OCBC Bank also inked a partnership with Chongqing Rural Commercial Bank to deepen cooperation in SME cross-border financing.

OCBC Wing Hang Bank (China) Ltd CEO Kng Hwee Tin said this pilot initiative enables for the establishing a new cross-border connectivity channel under the CCI that could be replicated in the Western Region.

"We have been making considerable headway in establishing alliances with the local banks in Chongqing and facilitating the overseas expansion of the city's enterprises. CRCB is the largest local commercial bank in Chongqing. In May 2016, OCBC Bank entered into an inaugural agreement with CRCB to explore offshore financing and capital raising opportunities," he stated.

Lastly, UOB had an agreement with China Chongqing International Economic and Technical Cooperation Group Corp., Ltd.