DBS Bank's China office has launched a new service that allows clients in the SIP to seek RMB-denominated loans from Singapore banks.

DBS Bank (China), the local arm of Singapore-based DBS Bank, has launched a cross-border Renminbi lending service that would allow customers from China to obtain a loan from its Singapore office.

The new Suzhou Industrial Park cross-border RMB transactions initiative is open to clients based in the China-Singapore SIP, which is county-level administrative zone in Suzhou with a significant link with Singapore. This means that banks in the city-state will be allowed to lend RMB to companies in the zone.

The move comes just a week after the People's Bank of China's Nanjing branch issued a directive to allow Singaporean banks to provide the service, without limiting the annual foreign debt quota of the said banks. There is now also an expansion in the usage of the loans, enabling companies to entrust loans to their subsidiaries.

DBS China has also reached agreement with other companies in the SIP to obtain cross-border RMB loans.