China and Taiwan banking regulators talk about opening markets

Representatives from both parties will conduct regular bi-annual meeting to gradually clear obstacles on Cross-Strait Banking Supervision Cooperation.

Banking regulators from the Chinese mainland and Taiwan on Monday conducted the first negotiations on financial cooperation after the Memorandum of Understanding on Cross-Strait Banking Supervision Cooperation was signed in 2009.

Regulators from both sides jointly announced the establishment of a regular meeting mechanism to negotiate regulations for commercial banks doing businesses in each other's markets.

The leaders of the two sides' banking supervisory bodies or other designated representatives will hold regular talks every six months, alternating locations between the mainland and Taiwan, the official Shanghai Securities News reported on Tuesday.

The mainland’s regulatory agency hopes that its counterpart in Taiwan could gradually reduce requirements for mainland banks to expand their operations on the island. Taiwan's regulator has agreed to actively consider the demand, the report said.

The China Banking Regulatory Commission (CBRC), in return, reiterated that it would continue to support Taiwan's commercial banks in setting up more branches on the mainland and conducting more services, the report said.

Despite the landmark talks, there are still significant obstacles to be overcome. Taiwan-based banks are not initially allowed to conduct renminbi business, while mainland banks are still looking for clearance to set up more than representative offices on the island.

View the full story in Business China.