China opens doors to Taiwanese banks

Six lenders immediately applied for branch expansion in Mainland following FSC approval.

The amendments to the three revised statutes governing the operations of banks, insurance companies and securities houses were enacted Monday, paving the way for Taiwanese banks to file applications to branch into China.

The Financial Supervisory Commission (FSC) was to start accepting applications Monday afternoon.

FSC Chairman Sean Chen said that it would take about two months for the FSC's Banking Bureau to screen applications filed by local banks to invest in China and that it would take another four to six months for Chinese authorities to process the applications before granting licenses.

"Taiwanese banks will be able to formally venture into China by the end of the year at the earliest," Chen told the legislative finance committee Monday.

All the local state-owned banks, including Taiwan Cooperative Bank, First Commercial Bank, Land Bank of Taiwan, Chang Hwa Bank, Business Bank of Taiwan and Hua Nan Commercial Bank, said they would submit applications as soon as possible.

View the full story in Taipei Times.