CIMB Bank Bhd has signed a Letter of Intent (LOI) with China CITIC Bank Corporation Limited to strengthen financial connectivity between China and ASEAN, with a focus on facilitating trade, financing and investment flows across Malaysia and Indonesia.
The partnership combines China CITIC Bank’s extensive onshore network in China with CIMB’s regional presence across ASEAN, enabling clients of both banks to access a broader range of cross-border banking solutions covering trade transactions, payments and financing.
Under the collaboration, both banks will explore initiatives to enhance Chinese yuan renminbi (RMB) and foreign currency payment and clearing capabilities, including potential access to China’s Cross-Border Interbank Payment System, interbank RMB funding arrangements and offshore lending opportunities into ASEAN markets.
The banks also plan to improve cross-border treasury and cash management services through closer coordination between their headquarters and branch networks. This is expected to help businesses manage accounts and transactions more efficiently as they expand across the China-ASEAN corridor.
In addition, CIMB and China CITIC Bank will support clients seeking expansion opportunities in China and ASEAN through mutual referrals, advisory services and assistance with regulatory requirements, cross-border transactions and merger and acquisition activities.
The partnership will also explore collaboration in syndicated loans across primary and secondary markets, providing clients with wider access to regional and international funding opportunities.
Chief Executive Officer of Group Wholesale Banking at CIMB, Chu Kok Wei, said growing trade, investment and supply chain linkages between China and ASEAN are increasing demand for banking partners that can support businesses across both markets through integrated trade, financing and cross-border banking capabilities.
