Bank of China to strike deal with 4 Taiwan banks

MOUs to likely pave way for future direct yuan settlements between BOC and Taiwanese lenders.

Bank of China Ltd. (BOC) will sign memorandums of understanding on Chinese yuan settlement services and staff training with four Taiwanese banks by the end of this month, the Apple Daily reported Monday without citing any sources, according to a report in the Wall Street Journal.

Bank of Taiwan, Taiwan Cooperative Bank, Mega Financial Holding Co. and First Commercial Bank are expected to sign the pacts with Bank of China, the report said.

Bank of China President Xiao Gang will visit Taiwan later this month to sign the pacts, the report said.

The MOUs will likely pave the way for direct yuan settlements between Bank of China and the Taiwanese banks in the future, the report said, without elaborating. All yuan settlements between Taiwan and China go through Hong Kong now.