BMO Financial Group has become the first Canadian bank to be granted a license to provide local currency in China service to both foreign and local companies in China.

Issued by the China Banking Regulatory Commission (CBRC), the license enables BMO’s branch office in Guangzhou to offer a wide range of banking services such as deposits, loans, trade finance and other capital markets products to all corporations using Renminbi (RMB), China’s national currency. Previously, BMO could only provide these services in foreign currencies.

“This will allow us to offer greater access to financial services for a growing base of BMO clients who are looking to expand in China and want the expertise and resources of a strong bank on the ground that can support them in their own currency,” said Bill Downe, deputy chairman, BMO Financial Group and CEO of BMO Nesbitt Burns, in a release.

“We are confident the license will further enhance our customer relationships and make BMO a more valuable business partner,” he said.

BMO has branches in Beijing, Guangzhou and Hong Kong, and a representative office in Shanghai. BMO’s history in China dates back to the early 1800s when it completed its first foreign exchange transaction helping the United States finance its growing trade with China.

In March 2005, BMO was the only Canadian bank selected to work alongside the Bank of China, the CITIC Industrial Bank, the Industrial & Commercial Bank of China and six other international banks as a marketmaker for foreign exchange trading in China. Through the interbank China Foreign Exchange Trade System (CFETS), BMO will help lay the groundwork for trade and quote prices of eight so-called currency pairs, including dollar-sterling and euro-yen.