The Innovative Development Strategies For Commercial Banks In The Context Of RMB Globalization

The currency globalization is an important prerequisite for international financialinfluence of a country, throughout the trend of the world economy. As a firststep towards the internationalization, cross-border RMB settlement hasbecome future development direction in China, which has gained wide attentionfrom the beginning of the commencement.Since the cross-border RMB settlement launched in July2009, the volume ofbusiness has been climbing. The total cross-border RMB transactions surgedto3.3trillion Yuan in2012from$3.5billion in2009; and more importantly, RMBstatus quickly upgraded in the global payment currency ranking, from NO.35inOctober2010to NO.13in February2013. The sustained and rapiddevelopment of cross-border RMB business is inseparable from the support of the commercial banks. At the same time, cross-border RMB business hasbrought enormous benefits for commercial banks. More and more commercialbanks deem cross-border RMB business as a strategy to promote. How to seizethe opportunity to expand the market is the prior subject of commercial banks.This paper describes from below topics:-The process of RMB globalization.-The development of cross-border RMB settlement, and current policies.-The opportunities and challenges faced by banks, including customerservice, product development, operating supports, and risk control.-The existing innovations by commercial banks in the settlement area,financing field, and investment banking services.-The future trend for cross-border RMB settlement. I.e. RMB loop, RMBpricing, and convertible RMB.-The series of innovative development strategies for commercial banks.E.g. a global settlement system, global customer service, the provision ofintegrated products and services and mixed operation management.All the strategies not only provide a strong basis for a foreseeable future, butalso summarize the experience from writer’s daily routine. In addition, thispaper also explains, between the lines, the important role of the cross-borderRMB business that promotes RMB interest rate marketization, and the RMB exchange rate reform.As we can observe, RMB globalization has just started, and the cross-borderRMB business will continue to maintain a good momentum of growth as well.It can not only bring companies more settlement and financing options, but alsobring commercial banks huge economic benefits. As major participants in thefinancial sector, commercial banks have the confidence and ability to do well inthis market under the guidance of the innovative strategies.