Bank of Taiwan ready for currency clearance

The China Post news staff

Bank of Taiwan is ready to become a clearing bank under the soon-to-be-established cross-strait currency clearing mechanism, said Liu Teng-cheng, the new chairman of Taiwan Financial Holdings, yesterday. Liu made the remarks during the leadership changeover ceremony of Taiwan Financial, parent corporation of Bank of Taiwan. During the ceremony, Liu stated his vision for the company. “We began during the Japanese occupation period and has had a history of over 100 years. In the future, we’ll place a stronger focus on lending and investment. Meanwhile, we’ll readjust overseas branches and re-allocate assets,” he said. He also said Bank of Taiwan will work to get the central bank’s permission to become a clearing bank under the cross-strait currency clearing system. The bank’s Shanghai branch became operational on July 10. “At this point the Shanghai branch is not able to handle renminbi-related business, just like any other new branches set up by Taiwan banks on the other side of the strait, due to current regulations,” he said. “Yet, once the cross-strait currency clearing system is in place, Bank of Taiwan is confident in its ability to be a clearing bank,” he added.

Liu was the chairman of quasi-state Taiwan Cooperative Bank before coming to Taiwan Financial. Yesterday, Taiwan Cooperative also held a changeover ceremony in which Chen Lin-lung became the new chairman. He said his first priority is to complete the bank’s NT$18 billion capital increase. Separately, another quasi-state bank, First Financial Holding, yesterday announced its new President Lin Tsuo-yao, who vowed to lift the firm’s stock price, which has stayed at a low despite the bank’s high earnings.