THE Chinese mainland had approved applications by six Taiwan-based banks to open branches on the mainland, a mainland spokesman said yesterday.
The mainland had also given approval for four other Taiwan banks to establish representative offices on the mainland, Yang Yi, the State Council s Taiwan Affairs Office spokesman, said at a regular press conference.
A total of 15 Taiwan securities firms had set up 29 offices on the mainland so far, he said, adding that Taiwan investors had founded five insurance companies on the mainland.
Financial cooperation across the Taiwan Straits had developed smoothly since the two sides signed an agreement on financial cooperation in April 2009, he said.
The two sides signed a memo on the supervision on financial businesses in November 2009. The cross-Straits Economic Cooperation Framework Agreement (ECFA) that was signed in June had also contributed to the business, he said.
The mainland authorities hope to play an active role in supporting financial cooperation across the Straits, Yang said.
Separate reports from Taiwan said that Taiwan Cooperative Bank signed a memorandum of understanding (MOU) with Bank of China on Tuesday on partnership in a wide range of services.
Under the comprehensive business cooperation agreement, the two banks are expected to work together to offer services such as settlements, trade financing, project loans, syndication loans, interbank lending, risk management and loans for small and medium-sized enterprises.
At a news conference at the Taiwan Stock Exchange, Hsieh Chung-dea, executive vice president of the Taiwan bank, told reporters his bank was scheduled to open a branch in Suzhou in the mainland s Jiangsu Province on Wednesday, following the signing of the MOU. Hsieh said the Suzhou branch would target Taiwanese companies operating in Suzhou and the neighboring areas of Kunshan, Shanghai and Hangzhou.
The other four of the first five Taiwanese banks to secure approval from the China Banking Regulatory Commission to set up branches on the mainland are: First Commercial Bank, Cathay United Bank, Chang Hwa Commercial Bank and Land Bank of Taiwan.(SD-Agencies)
