A Study Of The Cross-border RMB Business Of Commercial Banks Against The Backdrop Of Internationalization

With the acceleration of China’s economic reform and opening up, the business modes of Chinese enterprises, no longer limited to pure domestic or international trading, are becoming increasingly diversified and multifaceted. The improvement of China’s international prestige leads to the increasing popularity of RMB in cross-border transactions; growing trade and investment activities denominated in RMB has provided new motivation to the internationalization development of Chinese banking industry. It is not only an inevitable requirement of serving the construction of China’s open economic system, but also an objective requirement for the banks to cope with ever fiercer financial competition. As raised by the Third Plenary Session of the 18 th Central Committee of the Communist Party of China, China will build a new open economic system, form a new pattern of all-round opening, and promote the domestic openness of the financial industry together with openness to the outside world, which has placed higher demand on the banking industry to accelerate its internationalization and increase its service capability.Under the backdrop of growing economic strength of China and the increasing internationalization of RMB step by step, Chinese enterprises have more prominent demands on cross-border settlement, investment and fund raising as well as integrated capital management. Faced with the capital advantages accumulated in the long term by foreign-funded large-scale transnational banking groups, Chinese commercial banks find it ever more imperative to accelerate the pace of internationalization and global system construction. The development of cross-border RMB business can further promote the internationalization of Chinese commercial banks, expand high-quality client pool, increase the scale of assets and liabilities and intermediate business income, improve the comprehensive competitiveness, and realize the leapfrog development of internationalized operation. Furthermore, via the globalization of commercial banks, transnational operations of Chinese enterprises are growing in scale and cross-border use of RMB becomes more standardized and improved in terms of scale and business varieties, hence enhancing RMB’s international prestige.This paper, against the backdrop of RMB internationalization, elaborates on the development course and status quo of cross-border RMB business,analyzes the correlation between the internationalization development of commercial banks and the development of cross-border RMB business, and thereforesummarizes the necessity and urgency for commercial banks to vigorously promote the internationalization of cross-border RMB business at present. In addition, this paper, based on a real-life case,analyzes the operation of cross-border RMB business and unveils the actual benefits that product brings to Chinese commercial banks and enterprises “going global”.