Taiwan Cabinet eyes cross-strait banking promotion

Taiwan financial institutions will soon be able to offer more yuan-denominated banking services following the ROC Cabinet’s approval Sept. 6 of two banking projects.
Two cross-strait banking promotion projects were greenlighted by the ROC Cabinet Sept. 6, paving the way for Taiwan’s financial sector to expand its footprint in mainland China and enhance global competitiveness.

Drafted by the Financial Supervisory Commission and ROC Central Bank, the proposals respectively target developing banking services with cross-strait characteristics and setting up a currency settlement mechanism.

“These projects will create new growth momentum for the local financial sector,” Premier Sean C. Chen said. “They will also play a key role in soon-to-be-unveiled central government economic stimulus packages.”

Under the FSC submission, 10 types of banking operations are set for strategic promotion. These include yuan-denominated domestic banking services and financing for local firms; e-commerce financial flows; local share listings of Taiwan outfits operating in mainland China; and banking regulation collaboration.

The central bank proposal, which deals with setting up a cross-strait currency settlement mechanism, is expected to boost bilateral trade and establish Taiwan as a major offshore yuan-clearance center.

“The central bank has been directed to waste no time in mapping out relevant measures in this regard,” Chen added.

Another key priority for the FSC and central bank is working with their mainland Chinese counterparts to get talks started on trade in goods and services under the Cross-Straits Economic Cooperation Framework Agreement (ECFA).

“Both agencies will continue negotiating in the best interests of Taiwan’s banking sector,” Chen said.

Meg Chang
Taiwan Today