Taiwan Business Bank (臺灣企銀) and three Taiwanese businesses yesterday signed agreements with China’s Bank of Beijing (北京銀行), marking another step in cross-strait banking services following the signing of the Economic Cooperation Framework Agreement (ECFA) in late June.
In a stock exchange filing, Taiwan Business Bank said the agreement it signed with Bank of Beijing to provide yuan-lending services for Taiwanese companies operating in China would be effective for three years.
The Taipei-based lender said it would also increase personnel exchanges with its Beijing counterpart under the strategic cooperation agreement, according to the filing.
Bank of Beijing is 16.07 percent owned by ING Groep NV, with the two initiating a strategic alliance five years ago. It has eight branches in China and a representative office in both Hong Kong and Amsterdam.
In a press release posted on the company’s Web site yesterday, the Chinese lender said it also inked a 95 million yuan (US$14.3 million) deal with three Taiwanese companies — Test Rite International Co’s (特力) Shanghai operations, Way Chein Food Industrial Co’s (味群食品) Baoding branch and Clevo Co’s (藍天) Buynow retail chain in Beijing — to support their business expansion plans.
The Chinese bank said it would also provide the three Taiwanese businesses a credit facility of up to 5 billion yuan over the next three years.
The cooperation pact between Taiwan Business Bank and Bank of Beijing follows on the heels of recent agreements signed between banks across the Taiwan Strait.
In September, China’s Nanjing Zijin Investment Co (南京紫金控股) signed a letter of intent with Taishin Financial Holdings Co’s (台新金控) Taishin International Bank (台新銀行) focusing on information exchange and business cooperation.
Last month, Nanjing Zijin also reached a joint venture agreement with Fubon Life Insurance Co (富邦人壽), a subsidiary of Fubon Financial Holding Co (富邦金控), to form a life insurance company in China.
Aside from the agreement with Bank of Beijing, Taiwan Business Bank, which has 125 outlets in Taiwan, said in yesterday’s filing that it had officially opened a representative office in Shanghai, which would help it collect information about that market and conduct surveys to better serve its customers.
The bank received approval from the China Banking Regulatory Commission in September to open an office in Shanghai.
Separately, E.Sun Commercial Bank (玉山銀行), the banking arm of E. Sun Financial Holding Co (玉山金控), announced yesterday it had signed a letter of intent with China’s Zheshang Bank (浙商銀行) on business cooperation.
E.Sun Financial said in a stock exchange filing that the company would sign a formal contract with Zheshang Bank after obtaining regulatory approval from the Financial Supervisory Commission.
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