1. RMB Clearing Experience and Plans OTP Bank plc, Budapest Vilmos Hantos Deputy Director Global Financial Institutions tel: +36 1 298 30 44 hantosv@otpbank.hu www.otpbank.hu

2. OTP Bank RMB clearing strategy getting into shape through 2010- 2011 Decision of the Chinese Government in June 2010 on the internationalization of the currency Even the potential of the world reserve currency status was forecasted Fast growth of cross-border RMB payment turnover worldwide from practically zero OTP strategy in 2010 : Prepare for potential customer requirements Quote RMB against HUF Develop a clearing product in RMB for our clients Targeted client segment: SME’s having business with companies in the PRC

3. RMB clearing accounts of OTP Bank in PBOC and Hong Kong Industrial and Commercial Bank of China Agricultural Bank of China Bank of China Bank of Communications China Construction Bank and some of our clearing service providers in other currencies in Europe 2011: ICBC selected as OTP Bank’s onshore RMB clearer and Royal Bank of Scotland selected as our offshore RMB clearer We are now re-considering our approach and plan to build partnership also with a Chinese bank offshore. First step: to establish nostro account relationship with financial institutions for a standard RMB clearing. 2010 : RfP sent to the 5 largest banks in the PRC:

4. Account turnover in CNY and CNH (2011-2015) Rather low turnover - volume of RMB payments accounts for 1 % of the total cross- border payments of OTP Bank Our clients’ commercial contracts are still predominantly concluded in EUR or USD Our clients still use USD and EUR in their cross-border payments How can we boost volume of cross-border RMB payments? Some of our clients are concerned by the restrictions still in place, unlike for payments in EUR or in USD Further liberalization would be welcome Example: One of our clients paid conference participation fee in RMB it was returned as it was not trade related. Problem of double conversion with RMB HUF EUR RMB Clients require to avoid double conversion

5. The Renminbi Initiative of the National Bank of Hungary We trust that the Renminbi Initiative of the National Bank of Hungary and PBOC will contribute to finding a solution to these problems and more and more clients will prefer RMB for their cross-border payments.