Harbin, Russian banks cooperate in interbank borrowing

Harbin Bank, a city commercial bank headquartered in Harbin, capital of Northeast China’s Heilongjiang province, signed an interbank borrowing deal on June 7 with the Russian Federation Foreign Trade Bank affiliated with the Russia National Development Group Corporation in a bid to improve economic and trade exchanges between China and Russia.

Interbank borrowing refers to interbank RMB lending between commercial banks for 4 months to 3 years, which is a common financial technique for foreign financial institutions looking to acquire RMB funds.

Harbin Bank, which has ties to several Russian banks, plays an important role in currency clearing services for the Chinese yuan and Russian ruble.

The Russian Federation Foreign Trade Bank participates in national projects through cooperation with commercial banks and investors in high-tech industries, non-oil exports, infrastructure, and the modernization of urban agglomerations.

The newly-signed deal is another key cooperation project between the two parties. The two once signed a loan deal worth 10 billion yuan ($1.45 billion) in 2016.