Citic Bank joins Chips

Source: The Clearing House

CITIC Bank International Limited, a member of the China CITIC Bank Group, is now using CHIPS, the real-time, large dollar payments system operated by The Clearing House.

"Participation in CHIPS enables CITIC Bank International to support its global expansion and provide clients with a wire transfer platform that is reliable, secure and cost-effective," said Peter Zhao, Head of the U.S. Operations of CITIC Bank International Limited. "By joining CHIPS, CITIC Bank International will have an opportunity to accelerate the growth of its dollar clearing business."

The industry standard in clearing and settling payments for 40 years, CHIPS plays an integral role in facilitating global liquidity. Serving 50 banks representing 22 countries, CHIPS is responsible for approximately 95% of international USD clearing. CITIC Bank International Ltd is one of five Chinese financial institutions on CHIPS.

"CHIPS provides CITIC Bank International with an opportunity to expand its wire payments business by meeting the increasingly global needs of its customers," said Ray Mulhern, Senior Vice President of The Clearing House, responsible for CHIPS Product Management & Strategy. "The liquidity leverage, resiliency and operational efficiencies of CHIPS have long been recognized by the world's major banks. CHIPS remains committed to helping domestic and international financial institutions and their customers operate in today's global economy."

CHIPS processes 350,000 wire payments daily with a total value of USD1.5 trillion. Features such as the netting algorithm - a patented process that maximizes the use of liquidity without incurring daylight overdraft charges - significantly streamline operations for financial institutions. A single dollar of liquidity turns over up to 500 times a day in CHIPS aided by its netting process.

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