EastWest Bank to start offering renminbi accts

MANILA, Philippines - East West Banking Corp. (EastWest) will start offering renminbi-denominated products next month amid the country’s expanding trade relations with China.

“Beginning Aug. 8, the bank will start offering in all its branches the RMB savings account, time deposit, loans, remittance and trade financing,” EastWest said in a statement.

The bank has signed an agreement with the Manila branch of Bank of China for the new product offerings, intended to serve the  needs of retail and corporate clients doing business in China.

“EastWest is offering trade finance with letters of credit where clients may choose the currency of settlement. To further enhance the product, EastWest can also provide forward RMB rates for hedging against foreign currency risk,” the bank said.

China was the Philippines’ biggest source of imports last year as it accounted for 13.01 percent of all shipments, government data showed. In terms of exports, China was the third largest market for Philippine products in 2013, making up 12.19 percent of the year’s tally.

“We can help facilitate transactions between local and Chinese companies through trade financing. This financial solution will help customers take advantage of the many business opportunities offered by China while reducing costs and risks,” said Ernest Uy, senior vice president at EastWest.

At the same time, EastWest said the new products are also expected to entice individuals or firms looking for investment options for their RMB funds.

“We are pleased to make available a full suite of Renminbi products to the Philippine market,” said Gerry Susmerano, executive vice president at EastWest.  “What will ultimately set these products apart are the advantages that these give to our clients. For example, our RMB savings and time deposit have very attractive interest rates,” he added.

Last year, the Bank of China Manila branch and the Philippine Dealing System launched the RMB Transfer System, which provided real-time cross-border clearing.

EastWest, which currently has 330 branches across the country, plans to have at least 400 branches by year end.