What does FCPS banking mean?

FCPS refers to the domestic foreign currency payment system. The banking FCPS adopts Y-shaped information flow structure, which was first established by the People's Bank of China. Payment instructions are cleared by the foreign currency clearing processing center, settled by the agent settlement bank, centralized accessed by a single legal person, and operated by the clearing center.

Introduction of foreign currency clearing processing center and agent settlement bank

The foreign currency clearing and processing center is mainly responsible for the management of foreign currency payment receipt and payment and credit line. When the available credit line is insufficient, the foreign currency clearing processing center can arrange queue management of foreign currency payment, and can also conduct real-time clearing for each foreign currency payment of users. For foreign currencies with different currencies and different time periods, the foreign currency clearing processing center submits the clearing results to the correspondent bank.

The agent settlement bank mainly refers to opening foreign currency accounts for users, managing users' credit lines, and performing day-end reconciliation according to the settlement results submitted by the foreign currency settlement processing center.