In the News

FSC greenlights mainland Chinese bank branches

The FSC is expecting more mainland Chinese financial institutions to follow in the footsteps of Bank of China and Bank of Communications by opening branches in Taiwan. (Courtesy of FSC)

• Publication Date：06/08/2012
• Source： Taiwan Today
• By  Meg Chang

The ROC Financial Supervisory Commission approved operation plans June 7 for the Taipei City branches of Beijing-based Bank of China Ltd. and Shanghai-headquartered Bank of Communications Co. Ltd.

“We have cleared the institutions to conduct corporate banking and investment in commercial papers and bonds,” an FSC official said. “However, separate applications must be made to the ROC Central Bank if they wish to engage in foreign currency transactions.”

According to the commission, both branches will commence business by the end of the month after relevant licenses are issued by local authorities.

The branches will be the first opened by mainland Chinese banks in Taiwan. In late 2010, the institutions set up representative offices in Taipei’s Xinyi District under the Cross-Straits Economic Cooperation Framework Agreement (ECFA).

Although the FSC has no pending branch applications from other mainland Chinese financial institutions, it expects more to follow suit as cross-strait banking activities pick up steam.

The commission said Taiwan banks are also making headway on the other side of the strait.

Hua Nan Commercial Bank Ltd.’s Shenzhen branch can now offer yuan-denominated banking services, while the branches of Bank of Taiwan Co. Ltd., Chang Hwa Commercial Bank Ltd. and Cathay United Bank Co. Ltd. have applications awaiting regulatory approval. (JSM)

Write to Meg Chang at sfchang@mail.mofa.gov.tw