Taiwan's Domestic Banks See Slowdown in Growth of RMB Deposits in May

Influenced by the devaluation of renminbi (RMB) and lowering of interest rate of RMB-based deposits, Taiwan's domestic banks witnessed a slowdown in growth of RMB-based deposits in May.

The statistics released by Taiwan's central bank show that RMB-based deposits of domestic banks in May slightly edged up 0.88% or 2.542 billion RMB or about NT$12 billion (US$400 million) from a month earlier, both the lowest growth ever recorded since the banks in Taiwan were allowed to absorb RMB deposits.

As of the end of May, the outstanding RMB deposits of designated domestic banking units (DBUs) increased 2.45% or 5.573 billion RMB from a month earlier to 233.181 billion RMB, also the lowest growth of its kind ever recorded.

In the same month RMB deposits accepted  by the offshore banking units (OBUs) of domestic banks showed a monthly drop of 5.06% or 3.031 billion RMB to 56.898 billion RMB. (JL)