| Since the pilot implementation of cross-border RMB settlement across the country in July 2009, cross-border RMB has gone through six years. The settlement of cross-border RMB has been growing rapidly, and almost covering each part of the country. Many kinds of business, such as cross-border trade of merchandise, trade in services, direct investment, cross-border financing, securities investment and financing occurred. Banks, as one of the main driving forces to boost the development of cross-border RMB, are playing significant roles. All commercial banks take the cross-border RMB business as the most important issue in the next five-year-plan, and designed many strategic products of cross-border RMB business to push its development smoothly and rapidly. New product development has become the major "battleground" for many banks, because keeping the strength of the competitive product is the successful way to take up the shares of the market and win finally. Seven chapters are designed in this study. We first reviewed the general situation of the development of cross-border RMB in the perspective of foreign countries, our country and Shandong province, and then analyze the original power of the rapid development of cross-border RMB. Based on the difficulties encountered in the development of cross-border RMB business, this study examines the necessity and feasibility for commercial banks to carry out product innovation. Then, by using the methods of matrix analysis, three kinds of products of settlement, finance in trade and exchange are taken to be examined their contribution to the settlement and the income of intermediate business of the banks. Consequently, the cost-benefit method is used to analyze the gain from the product combination and the goal achievement of both winners for the firm and bank. Finally, the author suggests that the risk of product innovation should be strictly controlled to promote the smooth and rapid development of cross-border RMB business. |
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