The Ministry of Finance is planning to allow banks in Taiwan to open branches or subsidiaries in China, the Chinese-language media reported yesterday.
The report said Minister of Finance Yen Ching-chang (
One market watcher voiced support for the move.
"If Taiwan's banking industry wants to increase its competitiveness, extending business to China is a must," James Huang (
"Since Taiwan is going to enter the WTO in the near term, competition from foreign banks will increase considerably [after the entry]. The government is working on a comprehensive strategy for the banking industry to increase its competitiveness. One way of doing this is to set up the Greater China area as the niche market for Taiwanese banking industry over the next few years, especially in the state-run banking and semi-privatized banking sector," Huang said.
However, the report also quoted Yen as saying that "before the banking industry is allowed to set up branches in China, the jurisdiction problem across the Strait on the supervision of the bank's branches would have to be solved first".
"Since China has not agreed to allow Taiwan's banking industry to conduct remninbi business in China, therefore Yen proposed setting up branches or subsidiaries in China, in order to prevent massive funds outflows from Taiwan," an unnamed official from the Presidential Office was quoted in local media reports as saying.
In early April, however, the Executive Yuan proposed allowing banks to set up representative offices in China, provided they met certain criteria.
Only the top 10 banks -- in terms of both asset value and net worth -- would be allowed to establish such offices, according to a proposal made by the finance ministry and the Mainland Affairs Council.
Among the criteria are that a bank's capital adequacy ratio must be above 8 percent, it already have an overseas representatives office or branch, it possess international banking expertise and it not have violated key banking laws and regulations in the last three years.
Banks' representative offices in China will be allowed to gather business information research and financial and banking information as well as develop correspondence channels.
Nine banks hve met the criteria set down by the ministry, including the Bank of Taiwan (
Setting up representative offices is seen as just the first step toward the real goal of most of these banks -- establishing branches in China.
TWO CASES: The five allegedly conspired with conglomerates, threatening the nation’s governance and subverting the rules of ethical conduct, a deputy chief prosecutor said Taipei prosecutors yesterday charged three legislators and one former lawmaker with contravening the Anti-Corruption Act (貪污治罪條例) in a case linked to former Pacific Distribution Investment Co (太平洋流通) chairman Lee Heng-lung’s (李恆隆) battle with the Far Eastern Group (遠東集團) over ownership of the Pacific SOGO Department Store (太平洋崇光百貨) chain, while independent Legislator Chao Cheng-yu (趙正宇) was indicted in a separate case involving two funeral services companies and a plot of land in a national park. Chinese Nationalist Party (KMT) legislators Chen Chao-ming (陳超明) and Sufin Siluko (廖國棟), Democratic Progressive Party (DPP) Legislator Su Chen-ching (蘇震清) and former New Power Party legislator
Swedish Member of Parliament Hampus Hagman is pushing for changing the name of the nation’s trade office in Taipei to signal improved relations with “Asia’s perhaps foremost democracy.” Hagman on Wednesday last week proposed renaming the Swedish Trade and Invest Council to “Sweden’s Office in Taipei,” following similar changes by other nations. The Swedish Trade and Invest Council, part of Business Sweden, is owned by the Swedish government and Swedish industry. Taiwan and Sweden share important values such as respect for democracy, human rights, the rule of law and freedom of speech, Hagman said in the motion, adding that the two nations
PENGHU INSPECTION: Taiwan cannot let its enemies strut around in its airspace, Tsai said, one day after a Chinese spokesman denied a median line exists in the Taiwan Strait Following China’s assertion on Monday that there is no “median line” in the Taiwan Strait, President Tsai Ing-wen (蔡英文) yesterday pledged to defend the nation’s airspace during a visit to an air force base in Penghu, saying that Taiwan cannot allow others to flex their military muscle in its territorial airspace. Tsai praised the “heroic performance” of the pilots of the Indigenous Defense Fighters who have been intercepting Chinese People’s Liberation Army Air Force planes in recent days. “I have a lot of confidence in you. As soldiers of the Republic of China [ROC], how could we let enemies strut
EFFICIENCY: The rules for Philippine arrivals were revised after 17.6% of arrivals with symptoms tested positive, compared with 0.7% of those with no symptoms Starting today, Chinese spouses who hold a reunion permit can apply to enter Taiwan and travelers without symptoms from the Philippines do not need to be tested for COVID-19 upon arrival, but are to be tested after a 14-day quarantine, the Central Epidemic Command Center (CECC) said yesterday. Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, said that from today, Chinese who are married to a Taiwanese citizen and hold a reunion permit can apply to the National Immigration Agency for entry into Taiwan. Chinese who are married to a foreign national and hold an accompanied reunion permit