Taipei, Nov. 27, 2009 (CENS)--The Cabinet-level Financial Supervisory Commission (FSC) recently approved Bank of Taiwan`s (BOT) branch in Hong Kong to handle renminbi (RMB)-based business.

S. L.Chang, chairman of BOT, indicated that BOT is the first government-linked bank authorized to operate RMB-based business overseas. So far 17 Taiwanese banks have branches in Hong Kong.

FSC said that the said 17 banks also have to apply for permission to handle in Hong Kong RMB-based business, with such applications to be approved within seven days provided documentation meets regulations. Also the Hong Kong branches of Taiwanese banks have to sign clearing agreements with the Bank of China (Hong Kong) to handle such business.

Insiders disclosed that Taiwanese banks` branches in Hong Kong are allowed to offer RMB-based services as their Hong Kong counterparts, including savings, currency exchange, remittance, trade loans as well as RMB-denominated bonds and corporate bonds, except the China UnionPay, a credit card issued by Chinese banks.

(by Judy Li)