Renminbi deposits in local accounts reach 1.3 billion yuan: central bank

The central bank began offering Chinese yuan savings account and investment services on Feb. 6 under an agreement signed with the People's Bank of China.

To monitor and research the market for Chinese yuan services, the central bank has sent requests to the 46 banks to report back statistics on yuan deposits, transactions and loans on a monthly basis.

Commission from Banks

The Financial Supervisory Commission (FSC) yesterday issued a statement regarding banks' charging of commission fees on Chinese yuan services.

The commission said that banks should highlight relevant clauses on contracts before clients sign.

Contracts to provide Chinese yuan savings and financial services should offer clients a clear list of chargeable items and fees per unit, and make the list available at bank branches and on their official websites.

The FSC said that Chinese currency is categorized as a foreign exchange investment product. Banks' individual tactics vary, with some offering a commission fee that is based on the price difference between the New Taiwan dollar and the Chinese yuan.

The fees associated with yuan transactions also vary depending on the bank in question, the FSC said, adding that charges can range from around NT$200 up to NT$800. Some charge five ten-thousandths of the total of every transaction.

According to the FSC, banks are legally entitled to charge commission fees, but it is not legal for banks to repeatedly charge for the same product or service. To protect investors' rights, contracts should use bold type when detailing the charges that customers will be required to pay.

It is also necessary for banks to publish the list of charges on their websites and make it available at their branches, the FSC said.

It added that it has requested the Bankers Association of the Republic of China to publicize the list of all items that banks charge.

The list should be placed prominently on the association's website in order to ensure all potential clients are aware of the charges, the FSC said.

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