A report from the peak body for the Chinese banking sector points to a record high in international settlements by China’s key commercial lenders.
International settlements by China’s main commercial banks breached the US$10 trillion threshold in 2021 to hit $10.09 trillion in total, according to the “China Trade Finance Sector Development Report (2021 – 2022)” (中国贸易金融行业发展报告（2021-2022）) released by the China Banking Association (CBA).
The Report points out that China’s foreign trade saw rapid growth in 2021 thanks to the recovery of the global economy. China’s trade in goods rose 21.4% year-on-year (YoY) in 2021 to reach a record high of over USD$6 trillion.
CBA highlighted the growth in new forms of international trade such as e-commerce and integrated foreign trade services platforms, which have “expanded vast seas for innovative development of trade finance operations by banks.”
The Report also pointed to new opportunities for banks to provide cross-border green and ESG financial services to the global supply chain, as countries around the world drive the transition towards lower carbon or carbon neutral economies.