Taiwanese banks see more business on the Mainland

Talks between Taiwan and China later this month are expected to see more Taiwan banks open branches on the mainland.

Taiwan’s Financial Supervisory Commission (FSC) said banking services in China are expected to be the main subject of discussions at the third round of cross-strait banking cooperation talks FSC and the China Banking Regulatory Commission.

Analysts said Taiwanese businesses in China look forward to Taiwanese banks entering China’s financial sector since they trust Taiwanese financial institutions more than local Chinese banks and find working with them more convenient.

Recent events have improved cross-strait relations, especially between both countries’ financial sectors. FSC last week approved applications by the mainland Bank of China and Bank of Communications to provide financial services in their Taiwan branches.

Mainland banks, while large, still have long way to go before they can compete with Taiwan banks and local branches of foreign banks in foreign exchange and other services.