The Effects on OBU Operations of Cross-Strait MOU on Financial Industry Supervison

• Main Authors: Chin-Jao Chen, 陳錦饒
• Other Authors: Dr. David M. Chen
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/17890303488943658705

碩士 === 輔仁大學 === 金融研究所 === 98 === China takes a lion’s share of Taiwan's investment abroad, yet the cross-strait political situation keeps domestic banks from been able to provide financial services in China to local Taiwan business enterprises. Either the KMT or the DPP has long been aware that the proportion of and economic dependence on cross-strait trades are increasing and the necessity to adopt an open policy. As an alternative to facilitate overseas and Mainland Taiwanese enterprises on fund raising as well as reducing costs and improving timing efficiency of funds, banks are encouraged to expand the functions of their international business branches (OBUs), resulting in OBUs continuously achieving record high total assets and deposit and loan balances of non-financial institutions, making OBUs the dominant financial center for overseas Taiwanese firms. Now Taiwan has signed the Memorandum of Understanding (MOU) in financial supervisory cooperation with China, Taiwan's financial sector would be able to follow the most favored nation and national treatment principles of WTO to setup branches and subsidiaries in China. This thesis discusses the potential effects of signing MOU on OBUs. Emphasis is placed on the competitive and complementary nature of OBUs and China and Hong Kong operations of Taiwan banks.