Hua Nan Commercial Bank, one of Taiwan's largest banks with over USD36.3 billion in assets, is preparing to offer interest rate derivatives to its clients for the first time. "This is a new business for us," said Lisa Tsai, deputy treasurer in Taipei. She added, increasing liquidity in the swap market because of falling interest rates, has lead to growing customer demand for interest rate derivatives.
At the moment the bank offers foreign exchange forwards and options in Taiwan. Tsai said the firm is setting up systems to handle interest rate products. The interest rate swap and structured note market has been growing in Taiwan this year as more players enter the fray. In recent months firms such as Credit Lyonnais and Toronto-Dominion Bank have looked to start marketing structured notes in Taiwan (DW, 9/1).
The bank currently uses a number of derivative products for its own books, including interest rate and credit derivatives.
