China Merchants Bank, the first Chinese bank to establish a branch in the United States, is now using Chips, the real-time, large-dollar payments system operated by The Clearing House Payments Company.
"China Merchants Bank is linking to CHIPS because of its proven capability to clear and settle payments quickly, securely and at low cost," said Hui Fang, General Manager of China Merchants Bank's New York Branch. "CHIPS enables China Merchants Bank to meet the growing international needs of its customers."
CHIPS is the world's premier private-sector USD wire transfer system. CHIPS streamlines operations for financial institutions, with features such as multilateral netting -- a patented process that maximizes the use of liquidity without daylight overdraft charges. A single dollar in the CHIPS system turns over on average 500 times a day and is used by the netting process to clear payments throughout the day.
China Merchants Bank is the third international bank to connect to CHIPS in the past year.
"By connecting to the world's premier, private sector wire transfer system, China Merchants Bank will have the opportunity to maximize liquidity and serve the needs of its business customers in a completely secure environment," said Hank Farrar, Senior Vice President of The Clearing House, responsible for CHIPS. "Continual expansion of participation in CHIPS by highly regarded global banks reinforces CHIPS' position as the payment system of choice for USD payments, both domestically and globally. Especially in today's business environment, The Clearing House continues to show its customers that it is focused on helping them maximize revenue and minimize costs."