Ministry studies plan for Chinese banks

The government is still reviewing the feasibility of allowing Chinese banks to open representative offices in Taiwan, the Ministry of Finance said in a statement yesterday.

"No interministerial meetings have been held to reach any consensus," the ministry said in the statement, while rebutting a Chinese-language newspaper report that the government plans to allow Chinese banks to set up liaison offices here after May 20.

The lifting of restrictions should be based on the principle of mutual interests, the statement said. In addition, the government's policy of allowing Taiwanese banks to operate in China has met obstacles since it requires the formation of a cross-strait financial regulatory mechanism to monitor those banks, the statement said.

Cabinet Spokesman Lin Chia-lung (林佳龍) and Mainland Affairs Council (MAC) Chairwoman Tsai Ing-wen (蔡英文) said yesterday that no legal footing was in place to finalize the policy.

MAC has the final say about the policy, Vice Minister of Finance Susan Chang (張秀蓮) told lawmakers on Monday.

So far, China has allowed seven Taiwanese banks to set up representative offices across the Strait, while Taiwan has not allowed any Chinese lenders to establish liaison offices here.