Tie-up with ICBC and BOC expands links on currency remittance and international syndicated loans.
Taiwan's Mega Bank, under Mega Financial Holding, will sign a "memorandum of understanding on comprehensive close cooperation" with the Industrial and Commercial Bank of China (ICBC) and Bank of China (BOC), following approval of the plan by Taiwan's Financial Supervisory Commission (FSC).
The partnership will expand from the existing links between Mega Bank and the two Chinese banks in such fields as currency remittance and international syndicated loans. In addition, Mega Bank recently inked a cooperation agreement with BOC's Hong Kong branch for the supply and purchase of renminbi.
Partnership with Chinese banks will help Taiwanese banks overcome the difficulties for foraying into the huge Chinese market following the implementation of cross-Taiwan Strait Economic Cooperation Framework Agreement (ECFA), notably the obtaining of renminbi funds and credit investigation for prospective Chinese corporate clients.
The partnership between Mega Bank and ICBC and BOC will cover not only banking businesses already approved by regulators on the both sides of the Strait, but also any new permitted items in the future. At present, it will cover credit extension, promotion of deposits, and renminbi-based call loans, as well as manpower training and exchange of business information.
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