With the impending inking of currency settlement agreement between Taiwan and China, many Taiwanese banks are planning to add more domestic banking units (DBUs), with the number of new DBUs expected to be over 100 by the end of this year.
Insiders said that if the two sides of Taiwan Strait sign currency settlement agreement, the DBUs of Taiwanese banks will then be allowed to handle renminbi (RMB)-based financial services including deposits, lending, remittance, investment & wealth management, etc. It is believed that the permit to operate RMB businesses will bring massive profits to Taiwanese banks as cross-strait exchanges in trade, financial correspondence, tourism, and many other respects are growing rapidly.
Over the past couple years, Taiwanese banks have been actively applying for the setup of DBUs and among them are Shin Kong Commercial Bank, Far Eastern International Bank, EnTie Commercial Bank, Cosmos Bank, Ta Chong Bank, Union Bank of Taiwan, and Taiwan Business Bank.
C. Y. Lai, president of Shin Kong, indicated that Taiwan’s financial industry might see a rosy picture so long as Taiwan inks currency settlement agreement with China as RMB financial businesses are regarded as a big pie for Taiwanese banks.
Lai disclosed that Shin Kong is going to add seven more DBUs in the second half of this year to make the total number of its DBUs to 89, which is expected to further expand to 95 by the end of the year.