By: Chiu Po-sheng and Frances Huang
The gains in May were largely due to an increase in yuan deposits taken by banks’ offshore banking units (OBUs), the result, the central bank said, of Taiwanese businesses in China putting more of their funds in OBU accounts to meet higher seasonal cash needs.
As of the end of May, yuan deposits received by Taiwanese banks, including negotiable certificates of deposit (NCDs), totaled 308.28 billion yuan (US$45.34 billion), up 309 million yuan from the end of April.
Yuan deposits in Taiwanese banks have soared since February 2013, when Taiwan’s central bank lifted a ban on local banks’ domestic banking units (DBUs) conducting yuan-denominated transactions, including yuan deposits. [FULL STORY]