Taiwan

Mainland, TW to meet regularly on banking supervision

(Xinhua)
Updated: 2011-01-26 14:45

BEIJING - Banking regulators of the Chinese mainland and Taiwan have agreed to hold regular talks on banking supervision to safeguard cross-Strait financial stability, said a mainland official Wednesday.

Fan Liqing, spokeswoman for the State Council's Taiwan Affairs Office, told a press conference that the principles for the establishment of such a mechanism had been set, and discussions of details were still underway.

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The mechanism would be built on the framework of a memorandum of understanding (MOU), signed by the financial regulatory authorities of the Chinese mainland and Taiwan in 2009, which took effect in January last year.

The MOU focuses on supervisory cooperation in the fields of banking, securities, futures and insurance. It provides for thresholds and preferential policies for both sides to enter each other's markets.

The MOU is expected to facilitate the establishment of new bank branches, stake subscriptions and acquisitions for investors on both sides.

Since the MOU, six Taiwan banks last year were approved to open branches on the mainland, and five have started business. Three banks from the mainland have been approved to run representative offices in Taiwan.

"We hope the banking regulators hold supervision consultations at an early date," Fan said.