China’s Ping An Bank (PAB) is hoping to provide itself and its clients with a greater ability to extract more value from their U.S. dollar cash flows by expanding its cash-management relationship with Germany’s Deutsche Bank.
The two companies recently signed a memorandum of understanding in which PAB would use Deutsche Bank’s U.S. Dollar (USD) Clearing for Commercial and Treasury Payments solution.
The service would be offered through Deutsche Bank’s Autobahn App Market, which allows clients to access real time information-reporting services. When combined with liquidity and investment services, it helps improve forecasting capabilities, which would enable PAB to maximize earnings from its liquidity flows, the companies noted in their agreement announcement.
Deutsche Bank’s treasury clearing solution is designed to help clients improve efficiency of intraday cash flows by providing services to control payment prioritization and manage complex payment arrangements.
PAB is a Shenzhen-based commercial bank that provides comprehensive financial services to corporate and individual customers. It formed after the merger of Shenzhen Development Bank, the first listed commercial bank in China that went public in April 1991, and the former Ping An Bank. PAB operates a network of more than 500 outlets in China and has a representative office in Hong Kong.
"We are delighted to expand our longstanding relationship with Deutsche Bank, especially in USD payment clearing for both commercial and treasury payments,” Hu Yuefei, PAB executive vice president, said in a statement. “We truly believe this will enable us to achieve higher efficiency when providing USD payment services to our corporate and retail clients."
Deutsche Bank has been busy recently in China. Earlier this month, the bank opened a sub-branch in Shanghai’s free trade zone, offering a range of capital market solutions to corporate and financial firms. The bank will provide cash management and trade finance services with a focus on cross-border transactions after the approval from China Banking Regulatory Commission.
And in April, it signed a memorandum of understanding with Bank of China New York to expand their cash-management relationship by using Deutsche Bank’s new Guaranteed US Plus solution to process Bank of China New York’s international USD payments to U.S. beneficiaries.