What is the fund settlement system?
The fund settlement system is a RMB multilateral netting fund settlement system the WCB develops on its own through high-tech electronic means. It integrates transfer, reconciliation, settlement, information access, monitoring and account verification, performs fund transfer and settlement simultaneously, and provides efficient and secure services. The system provides for real-time settlement and account verification within the WCB, enables rapid transfer of funds between different locations for businesses and individuals, and offers advanced means of different-location transfer and settlement for other commercial banks, foreign banks, and large companies.
During the three years of operation, the settlement system has been running well. The quality of the service has witnessed a steady increase, and the information channel remains unblocked. By Oct. 1999, WCB had conducted 78.89 million deals of remittance, with a total amount of RMB2.233 billion, and a daily volume of 105 thousand deals, RMB29.6 billion. No loss of information has occurred in any deal, which helps WCB win praise from clients. The opening of the settlement system has put an end to the long remittance time in the past, when it took usually days or even one week for a single remittance to be made. Now, an electronic remittance takes less than 24 hours to reach the client’ account and the express one will only take several hours, helping the clients enjoy real swiftness and convenience of the system.
The fund settlement system serves the following purposes:
- The settlement of funds between the clients at different business outlets
- Fund settlement between the head office and branches, between higher branch and lower one
- Settlement of entrusted collection and paying of funds (credit card, draft, etc) between outlets
- Personal remittance
- Other inter-city settlement business
The characteristics of the settlement system:
The remittance information is transferred within the system, which is like an information highway, in a closed and automatic manner. The information and accounts are interacted. Remittance, settlement, and reconciliation are done at one time and within one day.
The transferring of the information can be monitored and tracked. Past records can be checked one by one at any time.
With a simple interface and clear instructions, it is easy to operate.
The system can be connected to client’s terminals, so as to meet their special requirement.
The security control of the settlement system
The settlement system has a strong capacity to guard against risks. It uses the commercial encryption codes that proved to be one of China’s best, so as to eradicate the possibility of any information inception or decoding during the process of communication. Mutual heat backup is adopted for equipment operation. The data lines mainly use X.25 data net, at the same time, telephone line is kept as a standby. When X.25 encounters troubles, telephone line will be automatically activated and connected to serve within three seconds.