Taiwan’s yuan deposits hit new high
Taipei, May 16 (CNA) Chinese yuan-dominated deposits held by banks operating in Taiwan hit a new high as of the end of April, according to the Central Bank of the Republic of China.
Market analysts said that the increase in the balance of Taiwanese banks’ yuan deposits largely resulted from a move by many banks here to offer higher yuan deposit rates, which led investors to park their money into their yuan savings accounts.
The statistics compiled by the central bank showed that the balance of yuan deposits received by banks in Taiwan totaled 330.13 billion yuan (US$53.25 billion) as of the end of April, up 5.54 billion yuan or 1.7 percent from a month earlier.
Yuan deposits received by the domestic banking units (DBUs) of the banks in Taiwan rose by about 5.3 billion from a month earlier to 277.87 billion yuan as of the end of April, the data indicated.
It showed that the offshore banking units (OBUs) of the banks took 52.26 billion in yuan deposits, up 248 million yuan from a month earlier, and the increase stopped a three-month falling streak for the OBUs’ yuan deposits.
The central bank lifted a ban to allow local banks’ DBUs to conduct yuan-denominated business, including yuan deposits, in February 2013. Before the ban was removed, only banks’ OBUs were allowed to conduct yuan-denominated transactions.
Analysts said that many banks in Taiwan have raised their yuan deposit rates to take in more yuan in a bid to place the currency in a wide range of investment instruments, such as yuan-denominated bonds issued in Taiwan and yuan bonds issued overseas, for profit.
Many banks in Taiwan have offered yuan deposit rates of more than 3 percent, much higher than the Taiwan dollar deposit rates. Standard Chartered Bank Taiwan has even offered a 4 percent rate for six-month yuan deposit accounts.
The central bank data showed that yuan-denominated lending and interbank loans totaled 18.56 billion yuan as of the end of April, down from 19.25 billion yuan recorded a month earlier.
As of the end April, yuan denominated lending and interbank loans from the banks’ DBUs fell to 1.63 billion yuan from 3.35 billion yuan recorded a month earlier, while yuan lending and interbank loans from the OBUs rose to 16.93 billion yuan from 15.90 billion yuan, the statistics indicated.
The central bank said that yuan-denominated remittance through the banks in Taiwan totaled 212.06 billion yuan as of the end of April, down from 273.18 billion recorded a month earlier.