Taiwan to relax rules on banking investment

Taiwan is set to ease restrictions on local banks investing in China in a bid to boost their competitiveness on the mainland, the government said yesterday.
The cabinet amended a law on cross-strait banking this week to remove a rule barring local banks and financial holding companies from investing in more than one Chinese financial institution, said the Financial Supervisory Commission.
Taiwanese banks will also be able to open up both branches and subsidiaries in addition to acquiring stakes in their Chinese counterparts, it said in a statement.
Their offshore banking units will also be allowed to expand lending business to Chinese individuals or institutions, instead of only serving Taiwanese or foreign businesses, it said. The new rules are expected to take effect within one month.