Taipei, Aug. 9, 2012 (CENS)--Total assets of offshore banking units (OBUs) of Taiwanese banks increased by US$707 million from a month earlier to US$160.203 billion in June, with outstanding foreign-currency loans rising US$1.013 billion to US$66.076 billion, both record highs according to the central bank.
OBUs have witnessed increasing RMB deposits, particularly in recent years due to rising popularity among Taiwanese enterprises for handling RMB transactions. At the end of June, outstanding renminbi (RMB) deposits held by OBUs totaled 15.861 billion RMB or about US$2.48 billion for a monthly rise of RMB 861 million or about US$134.53 million.
Before the currency settlement agreement signed between Taiwan and China, many Taiwanese banks planned to raise interest rates on RMB deposits to attract such business. Chang Hwa Bank and Mega International Commercial Bank are raising interest rate in one-year RMB deposits to 1.1% per annum, higher than 0.8% offered by Bank of Taiwan by 0.3 of a percentage point.
Insiders indicated that Taiwan's financial industry faces a rosy future as long as Taiwan inks the currency settlement agreement with China to enable Taiwanese banks to tap the potentially profitable RMB business.
(by Judy Li)