By Crystal Hsu / Journalist
Yuan deposits held by local banks last month rose 1.34% to 241.24 billion yuan ($ 37.23 billion), ending three-month decline, after private investors rose their holdings, but that individuals reduced their positions, the central bank said Thursday.
Yuan deposits rose 1.23 percent to 208.84 billion yuan in domestic banking units, while they soared 2.03 percent to 32.39 billion yuan in offshore banking units, a Central bank foreign exchange department deputy general manager Gloria Chen (é³å©å¯§) said at an online press conference in Taipei.
Chen attributed the advance from national units to bond repayments by local insurance companies and the increase in offshore units to accounts receivable from local electronics companies.
Photo: Kelson Wang, Taipei Times
Five yuan-denominated bonds were each worth 4.95 billion yuan or more last month, while two new bonds entered the market, raising 3.85 billion yuan, Chen said.
However, retail investors continued to cut yuan deposits in favor of new yuan funds that promise higher returns, she said.
The People’s Bank of China announced last week that it would cut reserve requirement ratios by 0.5 percentage point, which is expected to inject 1 trillion yuan into the financial system to help support China’s economic growth. , but could bode ill for investors reliant on interest income.
The Taipei branch of Bank of China Ltd (ä¸å éè¡) cut interest rates for deposits of several mandates by 0.1 to 0.27 percentage points.
Bank SinoPac (æ°¸è± éè¡) offers the highest interest rate among its peers of 3.05% for one-month yuan deposits, while Bank of Kaohsiung (é«é éè¡) has the interest rate the highest of 1.65% for three-month yuan deposits. Chen said.
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