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Analysis on Demands of Cash Management
● The foreign exchange funds of the enterprise were decentralized in the different member companies, so the enterprise requires the bank to assist in centralized management on the foreign exchange funds and resolve the imbalance of the foreign exchanges between member companies.
● With the assistance of the bank, the enterprise can collect the foreign exchange funds of the member companies to the finance company and allow the finance company to freely transfer the foreign exchange funds between the member companies.
● With the assistance of the bank, the enterprise can get through the channels between the RMB fund pool and the foreign exchange fund pool within the enterprise, and realize the internal exchange settlement and sales of the group. During the process of internal exchange settlement and sales, the bank can be commissioned to offer commission note check service and the unchanged business of the foreign exchange exposure.
● Because the enterprise is unfamiliar to the foreign exchange management policy, the enterprise can apply for and handle the above foreign exchange business with the assistance of the bank.
● After carrying out the centralized foreign exchange fund management of the enterprise, the bank can offer foreign exchange risk management and foreign exchange wealth management solutions to the enterprise.
Cash Management Solution
Aiming at the practical demand and features of the enterprise, ICBC designed a comprehensive cash management solution that was taking automatically collection of the foreign exchange funds and supported by services including internal exchange settlement and sales, foreign exchange risk management, foreign exchange wealth management and others to assist the enterprise to get through a channel connecting RMB fund pool in the group and foreign currency fund pool, enhance the management and control of RMB currency of the group and the foreign exchange funds, adjust the surplus and deficiency of the fund collectively, drop financial cost, enhance the use efficiency of the funds and realize the maintenance and increment of the funds.
1. Collection of Foreign Exchange Fund
In line with the requirements of the State Administration of Foreign Exchange, the centralized management through finance company on the foreign exchange funds of the current accounts of the member units of the group shall be submitted to the State Administration of Foreign Exchange for approval.
The finance company opens a inter bank foreign exchange account in ICBC, each member units open a new the current account of the foreign exchange funds or appoint an existing current account of the foreign exchange funds. At the end of every day, the funds will be automatically collected through ICBC system in various modes such as complete collection as well as part collection and retaining certain amount.
● The regional companies centralize the fund demands of the subordinate third-level companies and sent the united order of appropriation to the finance company.
● All practical flows of the funds occur between the accounts of the regional companies and the finance company (the broken lines of the figure are the internal accounts of the finance company and the real lines are the practical accounts in the bank).
2. Internal Exchange Settlement and Sales
In line with the requirements of the State Administration of Foreign Exchange, when an enterprise conduct internal exchange settlement and sales business with its member units through finance company, it shall submit application and operation process to State Administration of Foreign Exchange and carry out the business after approved. Meanwhile the finance company can apply for the qualification of foreign exchange market member among banks.
Concrete operation flow of internal exchange settlement and sales
(The broke lines are internal accounts of finance company, and the real lines are the real bank accounts)
3. Foreign Exchange Risk Management
Aiming at the demand of the client, ICBC customized a foreign exchange fund risk management solution for the enterprise.
4. Foreign Exchange Wealth Management
Aiming at the demand of the client, ICBC offered diversified wealth management products to the enterprise.
Plan Implementation Effects
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