Mainland, Taiwan banks agree on syndicated lending

Ten banks from Taiwan and the Chinese mainland on Tuesday signed a memorandum of understanding (MOU) on syndicated lending, increasing financial cooperation across the Strait.

The MOU on syndicated loans -- loans pooled by a group of lenders for a single borrower -- was endorsed at the two-day cross-Strait entrepreneurs summit that opened Monday in Taipei.

The MOU will make financing across the Strait for small and medium enterprises easier, and stimulate financial cooperation in other fields, said Li Lihui, former president of the Bank of China.

Of the 10 banks, five are from the mainland -- Bank of China, Bank of Communications, Bank of Nanjing, China Development Bank and China Minsheng Bank -- and five from Taiwan: Bank of Taiwan, CTBC Bank, Fubon Financial Bank, Land Bank of Taiwan, and Taiwan Cooperative Bank.

In addition to the syndicated loan deal, more than 30 agreements and MOUs were signed, including 24 focused on small enterprises and on creative industries, said Vincent Siew, formerly vice leader of the island, at a press conference.

The 2015 summit will be held in the eastern mainland city of Nanjing, Jiangsu Province.