DBS to boost Hong Kong lending by 10%

Trade with mainland China is fueling demand for RMB services.

Sebastian Paredes, chief executive officer for Hong Kong, said renminbi trade settlements by DBS Group Holdings Ltd jumped 60% from 2011. He predicts the bank’s business using the renminbi will exceed the 17% share of total revenue it attained in 2012.

“What we clearly want is to continue the RMB products, the RMB services and the RMB capabilities to be in the forefront of the banking sector,” said Paredes.

Hong Kong banks handled some 90% of China’s renminbi-denominated trade payments last year. Sales of Dim Sum bonds rose to US$28 billion in 2012, a 15% jump year-on-year.

DBS expects a continuation of rapid growth in the utilization of the RMB not only in trade, but in FX, in money markets and in debt. The bank will also participate in the Renminbi Qualified Foreign Institutional Investor program