Hot search: Management  policy  deal  online  asx  safety  modern  Truck  road  ore 
 
Home > News > Economy > Content

DBUs Will Initiate Renminbi-Related Businesses Comprehensively

increase font size  reduce font Add date: 2016-11-26  Hits:54
Core prompt: Starting November 1,domestic designated banking units(DBUs)will initiate renminbi-related businesses comprehensively,announc

Starting November 1,domestic designated banking units(DBUs)will initiate renminbi-related businesses comprehensively,announced the Financial Supervisory Commission(FSC)yesterday(Sept.19).

As a result,local people will be able to deposit and withdraw renminbi at domestic banks and postal offices,at a daily ceiling of 20,000 yuan(around NT$96,000).Remittance to accounts with the same name in mainland China will be capped at 80,000 yuan(NT$384,000)daily.

The FSC held a seminar on a"plan for development of financial businesses with cross-Strait characteristics"yesterday,when Kui Hsien-nung,director general of Banking Bureau,the FSC,announced that following the designation of renminbi clearance bank in Taiwan,from November 1 Taiwanese banks will initiate renminbi businesses comprehensively,including the five major aspects of deposit/withdrawal,remittance,derivative,loan,and guarantee.Renminbi deposits at domestic banks will be protected by the deposit insurance mechanism,according to Kuei.

In parallel to the imminent inauguration of renminbi businesses,the Central Bank of China(CBC)has proposed to People's Bank of China the establishment of renminbi flowing-back mechanism,including re-deposit of renminbi deposit in mainland China and opening up of RQFII(renminbi qualified institutional investors),to facilitate the establishment of renminbi market.

At the seminar yesterday,the FSC also announced removal of the condition requiring that domestic banks must have business experience in member countries of OECD(Organization for Economic Cooperation and Development),in order to invest in mainland China.The liberalization will enable Taishin Bank,Far Eastern Bank,and Union Bank of Taiwan to set up mainland Chinese operations via the intermediary of Hong Kong.The FSC will also lift the restriction that mainland Chinese investments by domestic banks cannot exceed 15%of their book values,greatly boosting the wherewithal of domestic banks,including Cathay United Bank,Hua Nan Bank,and Mega Bank to buy into mainland Chinese banks.

Chang Yun-peng,chairman of the international finance committee of Bankers Association,remarked that initiation of renminbi business will bring about business opportunities in the four aspects of trade financing,corporate financing,consumer financing,and wealth management.

It is estimated that renminbi deposits will account for 5%of total banking deposits in two years and clearance for over 10%of cross-Strait trade will be carried out with renminbi.

In practice,businesses concerning renminbi deposit,withdrawal,and remittance will be inaugurated first,while renminbi wealth-management products,such as bonds and mutual funds,may be developed in the second stage,after renminbi deposits have reached a certain scale and renminbi flowing-back mechanism has been established.

 
 
[ NewsSearch ]  [ Send Fav ]  [ Share ]  [ Print ]  [ Send Report ]  [ Close ]

 
Total0bar [View All]  Related Comments

 
Photo Recommended
Recommend News
Click Rank
 
Home | Products | Suppliers | News | Tradeshow | Sitemap | Message | RSS Feed