The Financial Supervisory Commission said yesterday that it hopes to negotiate with its counterpart in China over bilateral financial supervisory matters to facilitate Taiwanese banks' expansion there.
"We hope financial authorities from the two sides can sit down and discuss the signing of related documents of financial supervisory cooperation to normalize the financial ties across the Taiwan Strait," commission spokesman Lin Chung-cheng (林忠正) said yesterday.
Lin's remark came after China announced last week that it would loan 30 billion yuan (US$3,713) worth of capital to Taiwanese companies based in China.
Currently, China only allows Taiwanese lenders to set up representative offices for information collection. They are banned from conducting loan business.
In response, the commission has reportedly formulated several plans to help Taiwanese businesses, including providing incentives for China-based Taiwanese firms to leverage the financial services offered by offshore business units of local banks and allowing Taiwanese banks to invest in their Chinese counterparts for expansion.
In addition, the commission has submitted a bill to the Cabinet for review that would allow Chinese financial institutions to set up representative offices in Taiwan, Lin said.
In principle, the regulations in the bill follow the requirements applying to foreign banks establishing branches in Taiwan, he said.
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