China Merchants Bank, the first Chinese bank to establish a branch in the United States, is now using CHIPS, the real-time, large-dollar payments system operated by the Clearing House Payments Company.
"China Merchants Bank is linking to CHIPS because of its proven capability to clear and settle payments quickly, securely and at low cost," said Hui Fang, the general manager of China Merchants Bank's New York Branch. "CHIPS enables China Merchants Bank to meet the growing international needs of its customers."
CHIPS is the world's largest private-sector US dollar wire transfer system. CHIPS streamlines operations for financial institutions, with features such as multilateral netting — a patented process that maximizes the use of liquidity without daylight overdraft charges. A single dollar in the CHIPS system turns over on average 500 times a day and is used by the netting process to clear payments throughout the day.
China Merchants Bank is the third international bank to connect to CHIPS in the past year.