Taiwan designates banks for renminbi clearance
(26 September 2012 – Taiwan) Taiwan is set to start its comprehensive renminbi-related business on 1 November through authorised renminbi clearance banks.
The domestic designated banking units (DBUs) will allow Taiwanese to deposit and withdraw renminbi at domestic banks and postal offices at a daily ceiling of 20,000 renminbi (A$3196). Remittance to accounts with the same name in mainland China will be capped at 80,000 renminbi daily.
DBUs will engage in deposits/withdrawals, remittances, derivatives, loans and guarantees. Renminbi deposits at Taiwanese banks will be protected by the deposit insurance mechanism.
The Taiwan DBUs named are Taishin Bank, Far Eastern Ban and Union Bank of Taiwan, these banks are allowed to set up Mainland Chinese operations via Hong Kong.
Taiwan will also lift the restriction that mainland Chinese investments by domestic banks cannot exceed 15 percent of their book values. This should enable domestic banks such as Cathay United Bank, Hua Nan Bank, and Mega Bank to buy into mainland Chinese banks.
Taiwanese bankers believe the start of the renminbi business will result in business opportunities in trade financing, corporate financing, consumer financing and wealth management.
They estimated that renminbi deposits will account for 5 percent of total banking deposits in two years and clearance for over 10 percent of cross-Strait trade will be carried out in renminbi.
DBUs will engage in deposits/withdrawals, remittances, derivatives, loans and guarantees. Renminbi deposits at Taiwanese banks will be protected by the deposit insurance mechanism.
The Taiwan DBUs named are Taishin Bank, Far Eastern Ban and Union Bank of Taiwan, these banks are allowed to set up Mainland Chinese operations via Hong Kong.
Taiwan will also lift the restriction that mainland Chinese investments by domestic banks cannot exceed 15 percent of their book values. This should enable domestic banks such as Cathay United Bank, Hua Nan Bank, and Mega Bank to buy into mainland Chinese banks.
Taiwanese bankers believe the start of the renminbi business will result in business opportunities in trade financing, corporate financing, consumer financing and wealth management.
They estimated that renminbi deposits will account for 5 percent of total banking deposits in two years and clearance for over 10 percent of cross-Strait trade will be carried out in renminbi.
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