Taiwanese banks in the mainland post profits

Mainland branches of six Taiwanese banks gained profits of 30.47 million yuan or US$4.84 million, said Liu Mingkang, chairman of the China Banking Regulatory Commission.

They have total assets of 5.1 billion yuan and have issued a total of 463 million yuan in loans, Liu said.

A memorandum of understanding on financial supervision, signed between the Chinese mainland and Taiwan, took effect in January 2010, allowing banks to set up branches on each other's sides.

Prior to the agreement, Taiwanese banks could only set up representative offices in the mainland.

According to the document, only mainland branches of Taiwanese banks that turn a profit in the first year of operation are allowed to provide banking services in renminbi for Taiwanese companies in the mainland. And they will be able to operate RMB business for all clients after two profitable years.

According to Liu, four other Taiwanese banks have applied to open mainland branches, and the CBRC will process their applications as quickly as possible.

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