RMB savings exceed 100 million at Bank of Taiwan: chief
The China Post news staffTAIPEI, Taiwan -- Renminbi savings at the Bank of Taiwan exceeded 100 million over the three-day period before the Lunar New Year break, said Liu Teng-cheng, chairman of the bank, yesterday.
February 19, 2013, 12:22 am TWN
Liu made the remarks during the bank's New Year reception yesterday, the first day of business after the break.
“We want to make our renminbi business profitable and sustainable,” said Liu. “We're not in it for short-term gains.”
Taiwan banks are now able to offer various renminbi products after a cross-strait currency clearance mechanism was put in place before the New Year's.
To lure customers, the Bank of Taiwan announced that those terminating their New Taiwan dollar time deposit accounts to switch to renminbi savings will not be subject to a 20-percent penalty fee that is docked from customers' interests.
“The positive effects of the new policy haven't fully played out, and we need to wait for about a month or so to see the benefits of this new offering,” Liu said.
The bank has set the goal of setting up 5 billion renminbi worth of savings accounts by the end of the year.
As for how to make good use of the abundant renminbi stored up at the bank, Liu said his company will offer overseas syndicate loans and invest in renminbi-denominated bonds.
“What we're trying to do is to diversify our renminbi investment strategy,” he said.
For those seeking to capitalize on higher interest rates offered by renminbi savings, Liu said they must beware of exchange rate losses.