The China Post news staff
TAIPEI, Taiwan — Hua Nan Commercial Bank Ltd. was granted approval from China Banking Regulatory Commission (CBRC) yesterday to become the first domestic bank to provide comprehensive RMB banking services in China.
The approval, which is a milestone development for Taiwanese banks with branches in China, was awarded to the bank after a five-day review by CBRC.
Huan Nan bank is a heavyweight government-invested bank in Taipei.
On March 29, Hua Nan will formally launch comprehensive banking services in Chinese yuan to corporations and individuals in China, including deposits, credits, bank acceptance bills, export and import financing, foreign exchange and letters of credit.
It will also provide loans in renminbi, which is desperately needed by Taiwan companies in China.
With the approval, the bank can now provide aforementioned banking services to all business customers in China (including corporations invested in by Taiwanese, mainland Chinese and international firms) as well as individual customers (including Taiwanese and foreign citizens).
As for individual mainland Chinese customers, however, the deposit service for Taiwanese banks is limited to time deposits of over 1 million yuan.
The bank’s Shenzhen branch became a Taiwanese member of the renminbi Cross-border Payment Management Information System last August.
This membership allows the bank to serve domestic counterparts by providing Chinese yuan settlement services to their branches in China.
According to Hua Nan, it will deliver optimized banking solutions by integrating the renminbi business activities of all of its domestic designated banking units, offshore banking units and Hong Kong and Shengzhen branches.