Lately, the regulatory authorities in Taiwan gave its consent to Bank of China Taipei Branch to increase its working capital by NTD1.8 billion (equivalent to RMB360 million). This is the first time an enterprise from China’s Mainland has been approved to make RMB-denominated investments in the Taiwan region.
The injection of working capital by BOC into its Taipei branch has fully demonstrated the Bank's keen attention paid to the financial ties across the Strait. In doing so, Taipei Branch will further boost its capital strength, which, will help continuously expand the credit asset scale in Taiwan, enhance fund liquidity levels of RMB clearing banks, and better serve financial activities across the Strait. The injected working capital will be allocated and retained in RMB, which has broken the customary practice of injecting capital in USD and then converting to NTD, created a new channel for cross-Strait investments, and is a useful experiment with the cross-border development of RMB.
Opened officially in June 2012, Taipei Branch of BOC is the first operating branch established by a mainland commercial bank in Taiwan region. On December 11 of the same year, the branch was approved to act as an RMB clearing bank in Taiwan. As of the end of July 2014, the total assets of Taipei Branch amounted to around US$41 billion.
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