FSC to free up establishing of rural financial branches
By Ted Chen ,The China PostTAIPEI, Taiwan -- In an effort to bridge the gap between urban and rural areas, a government body yesterday announced that it is considering lifting restrictions on the establishment of branch locations in areas lacking access to financial services.
September 18, 2013, 12:11 am TWN
Financial institutions intending to establish branches in more rural townships may be exempt from current restrictions in the number of locations they are allowed to set up, said the Financial Supervisory Commission (FSC) yesterday.
Numerous restrictions will be lifted in this initiative, while banks and other financial institutions will enjoy the benefits of an expedited approval processes and more relaxed terms in new branch establishments.
The FSC stated that areas with less than four financial institutions per 100,000 residents are eligible for this initiative.
According to the FSC, there are over 172 townships lacking in access to financial services meeting this criteria.
The regulator hopes to encourage banks and credit unions to provide service coverage for more rural areas in an effort to stimulate local economic development.
However, to prevent unscrupulous companies from taking advantage of the change, the FSC stated that once established a financial institution may not move their rural branches for seven years.