Taiwan

Taiwan banks to establish branches in mainland

(Xinhua)
Updated: 2010-09-16 21:31

BEIJING - The China Banking Regulatory Commission (CBRC) Thursday said it has approved the first four Taiwan-based banks to set up branches in the mainland.

Related readings:  CBRC to introduce new supervisory rules  Bank regulator to curb speculative property investment  Taiwan financial firms to seek mainland opportunities  Cross-Strait economic pact takes effect Sunday

The four banks were the Land Bank of Taiwan, First Commercial Bank, Taiwan Cooperative Bank and Chang Hwa Bank.

The Land Bank of Taiwan and First Commercial Bank were allowed to set up branches in Shanghai, while Taiwan Cooperative Bank could set up a branch in Suzhou City and Chang Hwa Bank in Kunshan City, both in Jiangsu Province, the CBRC said in a statement on its website.

The CBRC labeled the event as "another historic breakthrough" in banking cooperation between the mainland and Taiwan after the two sides signed the cross-Straits financial cooperation agreement and cross-Straits financial supervision memorandum of understanding.

"It signals the advent of a new era for cross-Straits exchange and cooperation in the banking sector," it said.

In terms of total asset value, Taiwan Cooperative Bank is the second largest lender in the island, the Land Bank of Taiwan is fourth, First Commercial Bank is fifth and Chang Hwa Bank eighth.

"The CBRC will also encourage qualified mainland-based banks to establish branches in Taiwan," said the statement.

The Bank of China and Bank of Communications have applied to establish representative office in Taiwan, and are awaiting regulatory approval from Taiwan.