Aktif Bank becomes first Turkish lender to join China's CIPS

Aktif Bank General Manager Aysegul Adaca Ogan announced on Monday that the lender has become the first Turkish bank to join China's Cross-Border Interbank Payment System (CIPS), signing the agreement at the China International Fair for Investment and Trade (CIFIT) in Xiamen to facilitate direct yuan-denominated settlements for Turkish businesses.

The system allows global payments to be processed in Chinese yuan without converting through multiple currencies, reducing both transaction time and costs for Turkish small- and medium-sized enterprises alongside larger corporations, Ogan told Anadolu on the sidelines of the event. She noted that the platform, developed by the People's Bank of China (PBoC), has expanded over the past five years to include foreign banks and now serves more than 1,800 institutions worldwide.

Rising trade volumes

Yuan-denominated payments via CIPS now account for 28% of China's foreign trade volume, which totaled $6 trillion over the past five years, according to the bank's assessment. Bilateral trade between Türkiye and China doubled during the same period from $25 billion to $50 billion, creating rising demand for direct settlement mechanisms.

"With rising yuan payments in Chinese foreign trade and the growing demand for yuan payment systems in Türkiye, joining this platform has been a viable opportunity for us," Ogan said. The bank plans to open its digital banking platform to allow SMEs to process payments through the Chinese system, expanding its correspondent network beyond Europe and the Americas.

Long-term strategy

Aktif Bank maintains relationships with over 1,300 banks worldwide and was the only Turkish lender present at the fair's pavilion. "We have over 1,300 banks worldwide, and we want to expand our corridor to include regions like China after Europe and the Americas, after closely monitoring opportunities in the Chinese market," Ogan said. "We're the only Turkish bank at the fair's pavilion and our presence here today is an important step in our long-term strategy," she added.