China’s drive to make the renminbi a widely used currency has moved to the Norwegian banking sector as DnB Nor receives its license to provide Rmb loans in China.
This will benefit the bank’s shipping, offshore and logistics operations, which make up a large part of the bank’s interest in China.
Espen Lund, head of DnB’s Shanghai branch, remarks: “This is a historic step for the bank and something we have worked for since we established in Shanghai. As far as I know, DnB Nor is the only bank that specialises in shipping finance offering both loans in Rmb and [with] local shipping expertise in China. We look forward to increasing the loan portfolio in this area.”
“Now we have the capacity to provide loans to ship owners of ships that sail under the Chinese flag. This is an important milestone for the bank,” Lund adds.
The licensing could prove particularly popular with state-owned shipping companies as around 95% of all domestic shipping finance is completed in Rmb.
DnB Nor hopes that the licensing will establish strong relationships with an industry that looks set to boom along with the rest of China’s economy.
“Chinese shipping companies need to establish long-term customer relationships with a player who has good knowledge of the shipping sector and [will] support them through the growth period.” Lund adds. “We believe that DnB Nor can fill this role in the future.”
DnB already offers loans to Nordic companies based in China who need a local currency bank.
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