| Summary: | 碩士 === 東吳大學 === 法律學系 === 101 === Since the 1990s, the world's economy rapidly globalized. This in turn broadened the scope of international capital flow. In this globalized age, international expansion has become an essential way financial institutions to grow. The same can be said about Taiwanese banks, for they also need to see globalization as the key to growth. For Taiwan's financial institutions, cross-strait financial relations have been viewed as a major step towards globalization, and with the deregulation of cross-strait policies, Taiwan's economic ties with Mainland China have become closer and stronger than ever. The first thing that Taiwanese banks must do before venturing into Mainland China as soon as the gate to banking is opened, regardless of the business model, is to thoroughly understand the local regulations. Furthermore, deregulation of the banking industry will inevitably result in a significant impact to banks operating in their home country. How banks should respond to such changes has become a crucial topic. Another concern as important as the one described above is how the nation's financial authority should deal with the inflow of Chinese banks in the most efficient and fairest manner, given its existing supervisory framework. At this point of time, as authorities on both sides of the Strait are working towards relaxing restrictions to allow freer financial exchanges, there come also the need to understand banking regulations in Mainland China and how risks of deregulation can be mitigated. Therefore, the need to analyze the regulatory frameworks on both sides of the Strait has become more crucial than ever.
This study discusses the risks and legal issues involved following the deregulation of cross-strait banking, while focusing on the perspectives of Taiwanese banks setting foot in Mainland China. It addresses China's current banking system, the different models that other foreign financial institutions have explored to gain entry into China and the outcomes of their development, as well as China's existing regulations over foreign banks. These findings are compared to Taiwan's banking system and how Taiwan's Financial Supervisory Commission has regulated foreign banks. This article is therefore a study on the supervision of multinational banking institutions. It begins by analyzing current international practices in regulating multinational banking risks, followed by comparisons between China's and Taiwan's financial supervisory frameworks and how foreign banks are treated differently. The study then focuses on discussing the risks and supervisory issues that Taiwanese banks may encounter when venturing into Mainland China, and the challenges faced by Taiwan's financial authority in regulating Chinese banks here. Lastly, this study will discuss the supervisory implications of the financial MOU and ECFA signed between Mainland China and Taiwan, and propose recommendations to how the two authorities may co-ordinate and align their practices in the future.
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