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system
what is a clearing bank, in specific, what does rmb clearing bank do?
user
clearing means processing unsettled transactions. specifically - all the money transfers between the banks, in this case. clearing bank for rmb business means that all rmb transactions will be cleared through that specific bank. if bank a in hong kong gets a check drawn on bank b in hong kong, and the check is in rmb - a will go to the boc with the check and will get the money, and boc will take the money from b. that obviously requires both a and b have accounts with boc. "sole" clearing house means there's only one. i.e.: in our example, a and b cannot settle the check through c where they both happen to have accounts, or directly with each other. they must utilize the services of boc.
assistant