Four Chinese state banks to partner with Taiwan Cooperative Bank.
The four Chinese banks include Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China, who hope that Taiwan Cooperative, under the alliance, can provide credit guarantees to back the loans to Taiwanese enterprises in China.
Taiwan Cooperative said that the proposed partnership can be flexible, with the details to be further discussed, believing the cooperation will help its development in China.
Insiders disclosed that the four Chinese banks' proposal to set up the financing platform with Taiwan Cooperative has been approved by China's State Council, which will contribute 50 billion renminbi (RMB) or more than NT$200 billion (US$6.06 billion at US$1 = NT$33) to the project. More Taiwanese banks may be asked to join the platform in the future.
The four Chinese banks said that the Taiwan Cooperative Bank is their first Taiwanese partner because it is now Taiwan's second largest lender with a representative office long set up in Beijing, which will soon be upgraded to a branch. Besides, more than half of Taiwan Cooperative's clients are Taiwanese enterprises who are potential clients of the partnership.
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|Publication:||The Taiwan Economic News|
|Article Type:||Brief article|
|Date:||Jul 20, 2009|
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