Taiwan claims banking edge in Shanghai FTZ

Will not lose banking business to the FTZ.

Taiwan's Financial Supervisory Commission, the financial regulator, said Taiwanese offshore banking units have an advantage in the soon-to-be launched Shanghai free trade zone, dismissing concerns the OBUs will lose business to the zone.

FSC Chairman Tseng Ming-tsung said Taiwan's OBUs have developed for a long time and the Taiwanese laws governing them are strict and comprehensive. Tseng said the experienced Taiwanese banks will have considerable advantages in the FTZ.

Some Taiwanese bankers are worried that the FTZ will marginalize their OBUs, which currently offer a full range of renminbi-denominated services, including loans and trade settlements.

Others are concerned that the FTZ’s financial sector will be liberalized to a greater extent than for Taiwanese OBUs, which could make it harder for Taiwan to compete.

The FTZ, which will be launched on Sept. 27, has invited Taiwan's banks to set up branches there. China plans that the Shanghai FTZ will allow wider conversion of the renminbi.

It will allow convertibility of the renminbi on the capital account for the first time, under the pre-condition that risk can be controlled. The Chinese draft plan will also have the market set interest rates at the FTZ.

Also Read

MUAM to establish new organisation for credit investment

Westpac names Anthony Miller as CEO

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit