The Bank of East Asia, the Hong Kong-based bank, has launched a new Renminbi service in Taiwan after receiving approval from local regulators.

The approval was granted in line with the liberalisation measures effected by the Financial Supervisory Commission of Taiwan in July 2011, which allow offshore banking units and overseas branches of domestic banks in the country to engage in RMB-related businesses. Bank of East Asia Taiwan will offer the service through its Taiwan Offshore Banking Unit and will initially include account and deposit services, loans and advances, trade finance, remittances and currency exchange. This will be expanded in the future, as policies allow, the company said in a statement. 

"We already have RMB platforms in Hong Kong and Greater China. [The Taiwan launch] will enable our customers to enjoy greater flexibility and reduced exchange rate risk when conducting cross-strait business transactions," said Brian Li, the deputy chief executive for BEA Taiwan.

BEA has been operating in the country since 1993 when it set up a representative branch in Taipei that became a full-service office in 1997. It also has a branch in Kaohsiung and an OBU in Taipei. Its wealth management services are provided via BEA Wealth Management Services (Taiwan).

With the Chinese currency gaining traction in the world market, offshore financial services firms have been scrambling to take part in its growth by setting up their own RMB-linked offerings. Just last week, HSBC expanded its previously Shanghai-focused RMB cross-border trade service to all cities of Mainland China. New York firm Van Eck Global also recently launched a fund that offers exposure to RMB bonds. Other banks opening RMB services over the last two months include Saxo Capital, AllianceBernstein and UBS Wealth Management.