To unify the format of commercial drafts throughout the country in an electronic format and thus to create greater transparency
Clear2Pay, the international technology provider of payment solutions for financial institutions, has said that it is providing technology to Hong Kong-based Bank of East Asia (BEA) in China to launch its connectivity to the Chinese Central Bank’s nationwide Electronic Commercial Draft System (ECDS).
Reportedly, Bank of East Asia with over 70 branches and commercial offices in mainland China, will connect its corporate customers to the ECDS network, offering instant insight in ongoing trade transactions, in addition to cash and other payments based transactions.
Clear2Pay has said that its new supplied system covers all functional requirements stipulated by the Central Bank such as buy-in, sell-out, buy-back, issuance, remittance and discounting of commercial drafts. According to the company, companies within China work with a bank-guaranteed instrument, known as a Commercial Draft. In a push to unify the format of commercial drafts throughout the country in an electronic format and thus to create greater transparency, the Peoples Bank of China initiated the Electronic Commercial Draft System (ECDS) to which, over time, all banks operating within China must be connected.
Warren Gardiner, general manager Asia Pacific for Clear2Pay, said: “We are delighted to work side by side with an innovative bank such as Bank of East Asia. Creating transparency and efficiency in a country with such huge volumes makes absolute sense and we are very pleased to work with Bank of East Asia on this implementation.