Taipei, Nov. 11, 2009 (CENS)--The Cabinet-level Financial Supervisory Commission (FSC) in Taiwan recently announced to allow domestic bank branches in Hong Kong to extend renminbi-based corporate loans, in addition to handling RMB-based deposits, currency exchanges and remittances.

Further easing rules on the operations of Taiwanese banks in Hong Kong would likely help such branches create business opportunities on the islet and adjacent areas in China. There are 17 Taiwanese banks with branches in Hong Kong, whose operations have become increasingly important as revenue earners.

Market observers said that the HK branches of Taiwanese banks could better serve Taiwanese enterprises in China if allowed to extend RMB-based corporate loans, also believing that the financial markets on either side would be more mutually accessible after the Cross-strait financial memorandum of understanding (MOU) will have been signed.

C.J. Hsiao, deputy director at the Bureau of Monetary Affairs under the FSC, indicated that applications may be turned in now for HK branches to handle RMB-based businesses, with the FSC promising to approve such applications within seven days provided the documentation meets regulations.

The Hua Nan Commercial Bank, the first Taiwanese bank to establish a HK branch, said that its branch in Hong Kong plans to sign an RMB-based financial clearing agreement with the Bank of China (Hong Kong) once the application is approved by the FSC.

(by Judy Li)