National Dow Jones exchange rate last year and the impact of the Sino-US trade war caused important qualitative changes in the overseas business of Bank of China. The leader of Bank of China's overseas business, Maple Bank, has experienced two major changes. First, the amount of foreign currency deposits has decreased significantly. Second, in the past, Maple Bank's overseas loan business of both OBU surpassed overseas branches, but in 2020, OBU and overseas branches have experienced unprecedented "one rise and the other".
public stock financial circle pointed out that the OBU business of major banks has always been the main business in Greater China, and so is Mass Bank. However, in the past three years, it has re-installed its money laundering and cleaned up its customers. Then, Hong Kong's anti-extradition, the Sino-US trade war and the epidemic have caused the OBU business, led by Greater China, to decline, and replaced by the continuous expansion of overseas branches.
According to statistics from MegaFeng Bank as of the third quarter of last year, OBU loan business volume decreased by about 16.5% year-on-year, while overseas branches grew by 6.8%. The head of MegaFeng Bank pointed out that after MegaFeng broke out of the New York storm, the loan business volume of overseas branches has continued to expand in the past two years. Among them, in addition to the new southbound market in Southeast Asia, the United States has become an important source of expansion. For example, in 2020, the loan volume of New York branch grew by 20%, and Silicon Valley and Los Angeles also increased by about 20% and 15% respectively. In terms of deposit amount of
, the total amount of foreign currency deposits in the third quarter of 2020, decreased by about NT$54 billion compared with the same period of the previous year, with an annual decrease of about 5%. Among them, there are indeed many foreign currency fixed deposits that have been released to live, but because the amount of increased living deposits cannot keep up with the reduction in fixed deposits, foreign currency deposits have shown a net decrease.
MFB internal assessment that the growth of deposit volume in 2020 is mainly driven by deposits in NTD. It is estimated that it is related to the reduction of funds from MegaFB's large corporate households, led by Greater China, and the return of funds from overseas to Taiwan.
As of the third quarter of 2020, the net increase of NTD deposits of MegaFeng Bank in the past year was 162 billion yuan, of which NTD 3 NTD live deposits accounted for 31% and more than 25% of fixed deposits, and the overall current deposits, including Taiwan dollar and foreign currencies, have exceeded fixed deposits. It can be said that multiple factors have caused the largest adjustment in the deposit structure of MegaFeng Bank in history.
