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Bank of China to celebrate opening of Taipei office

2012/06/25 16:59:12

Taipei, June 25 (CNA) Bank of China, the first Chinese bank to begin operation in Taiwan, will celebrate the official opening of its branch in Taipei Wednesday, with the attendance of bank president Li Lihui.

Market sources believe the Chinese bank will become one of the designated clearance banks to be included in a yuan clearing agreement due to be signed between Taiwan and China.

It is widely speculated that Li will meet with Taiwanese financial policymakers during his visit to Taiwan.

However, there was no answer to phone calls made to the bank's Taipei branch for confirmation of Li's meeting with Taiwanese officials.

The bank is allowed to conduct only corporate finance in the initial stage, providing services to Taiwanese businesspeople and Chinese firms in Taiwan. The bank only takes deposits higher than NT$3 million (US$100,000).

The bank has finished testing its computer system for currency exchange and on data of inter-bank lending rate.

Taiwan and China reached consensus in mid-June on signing the yuan clearing agreement.

The clearing mechanism will enable speedy transfer of money between both sides.

Taiwan's central bank governor Perng Fai-nan told reporters on June 21 that he hoped the two sides can sign the agreement as soon as possible.

(By Kao Chao-fen and Ann Chen)