TWO Taiwanese banks in Shanghai are allowed to do wholesale yuan business on China's mainland, which may attract more lenders from the island to setup offices in the city.
The Shanghai branches of Cathay United Bank and First Commercial Bank have recently been approved to take yuan deposits and extend yuan loans on the mainland. The services are only limited to business customers, the China Banking Regulatory Commission Shanghai office said today.
Apart from wholesale yuan business onshore, Cathay United Bank was also granted the license for cross-border trade settlement in yuan. Meanwhile, Taiwan Business Bank has been allowed to set up a branch in Shanghai, said the local regulator.
Currently there are 11 branches and five representative offices operated by Taiwanese lenders on the mainland. Six branches in the city had total assets of 7.6 billion yuan (US$1.2 billion) by the end of February, according to the local regulator.