Taiwan Today

Nine major banks with government shareholding have been told by the Ministry of Finance to strengthen their presence in mainland China through establishing branches, subsidiaries and making stake acquisitions. "Exposure of these institutions to international markets should be upped in light of the fierce competition in Taiwan," said Finance Minister Lee Sush-der at a quarterly meeting of bank executives Nov. 25. "The mainland market needs to be further approached now that Taipei and Beijing have signed memorandums of understanding on financial supervision." According to an MOF official, the banks can tap the mainland mainly through setting up representative offices or upgrading existing ones to branch status. They can also open subsidiaries or take stakes in mainland peers, with strategic alliances an alternative for cross-strait banking tie-ups. The ministry will support all these moves involving banks’ commitments to penetrate the market across the Taiwan Strait as long as they present concrete, feasible plans that will enhance operation efficiency, the unnamed officials pointed out. During the meeting, which addressed management strategies and mid- to long-term development blueprints, these banks were also instructed to sort out land for development in order to activate their assets. By joining forces with the private sector, they can develop land holdings and lease properties for rentals. An option is to purchase buildings to earn fixed incomes. Meanwhile, the ministry ordered Taiwan Financial Holding Co. Ltd. and the Land Bank of Taiwan to plan for listing stocks on the domestic equity market. They should also act to raise operation efficiency by offering shares and improving communication with employees. In addition, the Export-Import Bank of the Republic of China can seek to be incorporated. (HML-THN)