Taiwan institutions will soon be able to offer yuan-denominated products as part of Taiwan Financial Supervisory Commission efforts to develop local banking services with cross-strait characteristics.
The move, which follows the signing of a cross-strait memorandum of understanding on currency settlement Aug. 31, has seen Taipei and Beijing fast-track respective regulatory procedures prior to the pact taking effect Oct. 30.
“The island’s financial institutions are set to offer yuan investment, loans, savings and remittance products once the currency settlement mechanism is in place,” an unnamed FSC official said.
Other instruments under consideration by the FSC include bonds; derivatives backed by commodities and financial products in mainland China; dual currency deposits; investment-type insurance policies; and mutual funds.
Equally important, the official said, is to make cross-strait bankcard transactions more convenient.
“The FSC is reviewing regulatory changes that would allow ROC nationals to make withdrawals and purchases in mainland China with locally issued bankcards.”
As part of cross-strait currency settlement preparations, FSC Minister Chen Yuh-chang will convene a seminar on cross-strait banking and pertinent commission policies. Scheduled for Sept. 19 in Taipei City, the event is expected to attract more than 400 business representatives, experts and officials.