Guangzhou and Shenzhen getting head start in bank account reform

From July 26, the pilot program of settlement account integrating domestic and foreign currencies has been officially launched in four cities – Guangzhou, Shenzhen, Fuzhou and Hangzhou.

The new program makes possible the access to settlement services of various currencies with only one bank account. This marks a breakthrough of Guangdong bank system reform, with Guangzhou and Shenzhen leading the disruptive program within the Guangdong-Hong Kong-Macao Greater Bay Area.

Specifically, the new program combines nearly all types of settlement accounts into one system, including RMB settlement account, foreign exchange account, cross-border RMB account, free trade account and non-resident account.

By opening only one account, depositors are able to manage a variety of currencies simultaneously as long as the capital is of the same type. The system will largely streamline the operation of foreign currencies and lower the cost for both enterprises and individuals.

The reform has been widely applauded. Financial staff from Wellside International said, it used to be complex for a company with a great volume of international business and cross-border RMB payments to manage foreign currencies, since each currency will need a single account, kept and checked separately.

Relevant services are now available at a total of 87 banking outlets in Guangzhou, and 57 in Shenzhen.