The offshore banking unit (OBU) of Mega Bank will initiate renminbi-related business from tomorrow (Aug. 30), one step ahead of domestic peers.
The initiation of the renminbi-related business is expected to spur a wave of renminbi deposits and prompt Taiwanese businesses to increase their reliance on OBU for international fund maneuvering, thereby helping Mega Bank achieve the goal of US$600 billion in forex handling volume by the end of this year.
Mega is the first bank approved to undertake renminbi-related businesses for its OBU, among 14 domestic peers which have applied to handle the businesses with Financial Supervisory Commission (FSC) following the opening up of the businesses on July 21.
Mega Bank reported that after the initiation of renminbi-related businesses, some 30-40% of the U.S. dollar deposits at its Hong Kong branch were transferred to renminbi accounts. Presently, renminbi deposits at the Hong Kong branch have topped 1 billion yuan, the largest among the Hong Kong branches of domestic bank, but its U.S.-dollar deposits have resumed the previous level, underscoring the influx of overseas fund into the branch after the initiation of its renminbi business.
In view of the experience of its Hong Kong branch, Mega Bank predicted that the initiation of renminbi businesses will help its OBU increase its ability to attract the influx of funds, as more overseas Taiwanese businesses will utilize its OBU as the center for international fund maneuvering.
Lu Tan-hung, vice president for planning of Mega Bank, pointed out that in the future, Taiwanese businesses in mainland China can directly deposit their renminbi funds at the bank’s OBU, thereby cutting the risk for exchange rates, as well as the cost for fund maneuvering and risk hedging. The service will be especially convenient for Taiwanese businesses whose parent companies are still in Taiwan, as they can access the service via their parent companies.
The initiation of renminbi business represents another major step in the development of Mega Bank’s international banking business. With 40,000 corporate clients, Mega Bank boasts the largest market share in foreign-currency deposits.
source: Mega Bank OBU Initiates Renminbi-Related Businesses | CENS.com - The Taiwan Economic News
The initiation of the renminbi-related business is expected to spur a wave of renminbi deposits and prompt Taiwanese businesses to increase their reliance on OBU for international fund maneuvering, thereby helping Mega Bank achieve the goal of US$600 billion in forex handling volume by the end of this year.
Mega is the first bank approved to undertake renminbi-related businesses for its OBU, among 14 domestic peers which have applied to handle the businesses with Financial Supervisory Commission (FSC) following the opening up of the businesses on July 21.
Mega Bank reported that after the initiation of renminbi-related businesses, some 30-40% of the U.S. dollar deposits at its Hong Kong branch were transferred to renminbi accounts. Presently, renminbi deposits at the Hong Kong branch have topped 1 billion yuan, the largest among the Hong Kong branches of domestic bank, but its U.S.-dollar deposits have resumed the previous level, underscoring the influx of overseas fund into the branch after the initiation of its renminbi business.
In view of the experience of its Hong Kong branch, Mega Bank predicted that the initiation of renminbi businesses will help its OBU increase its ability to attract the influx of funds, as more overseas Taiwanese businesses will utilize its OBU as the center for international fund maneuvering.
Lu Tan-hung, vice president for planning of Mega Bank, pointed out that in the future, Taiwanese businesses in mainland China can directly deposit their renminbi funds at the bank’s OBU, thereby cutting the risk for exchange rates, as well as the cost for fund maneuvering and risk hedging. The service will be especially convenient for Taiwanese businesses whose parent companies are still in Taiwan, as they can access the service via their parent companies.
The initiation of renminbi business represents another major step in the development of Mega Bank’s international banking business. With 40,000 corporate clients, Mega Bank boasts the largest market share in foreign-currency deposits.
source: Mega Bank OBU Initiates Renminbi-Related Businesses | CENS.com - The Taiwan Economic News
