Bank of Beijing and Taiwan Business Bank ink MOU

The TBB encourages its major clients in China to apply for $14.06mln loans from the BOB.

The Taiwan Business Bank (TBB) and Bank of Beijing (BOB) recently signed an MOU (memorandum of understanding) to share profits and risks in business cooperation, making such agreement the first of its kind among banks on either side of the Taiwan Strait.

T. C. Liao, TBB president, disclosed that the BOB will initially provide five billion renminbi (RMB) or about NT$23.5 billion (US$734.38 million) in credit to TBB’s clients in China, half of which is very likely to be used in the first year.

Liao indicated that many Taiwanese enterprises in China generally need RMBs to finance operations. Based on 300-400 borrowers a year needing US$1 million each, then the total loan value may reach US$370 million or about 2.5 billion RMB, generating service charge of an estimated NT$100 million or about 21.28 million RMB (US$3.13 million).

The TBB is encouraging three of its major clients in China to apply for loans from the BOB totaling 95 million RMB or about NT$450 million (US$14.06 million)

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