Opening of banks in China, Taiwan should be equal: FSC

The FSC made the remark after Liu Mingkang, head of China's Banking Regulatory Commission, said China and Taiwan's operation of banks on each side of the strait should be based on the ratio of 7:2 or 7:3 — that is, two to three Chinese banks operating in Taiwan per seven Taiwan banks in China.

Responding to this, the FSC said it had always been the regulatory body's position to use the principle of “weighted equality,” meaning the number of banks allowed on each side should be based on the size and population of the market.

Banking experts, meanwhile, said the 7:2 solution is workable. Allowing a great many Chinese banks to Taiwan would squeeze the room for local banks, and it wouldn't do any good to Chinese banks either as they wouldn't make any money, analysts said.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos Respond to this email