Mainland, Taiwan clinch financial regulatory mechanism amid global crisis

Source: Xinhua | 04-27-2009 08:26

NANJING, April 26 (Xinhua) -- The Chinese mainland and Taiwan clinched Sunday afternoon a cooperative financial regulatory mechanism to watch banking, securities, futures and insurance sectors across the Taiwan Strait.

The mainland-based Association for Relations Across the Taiwan Straits (ARATS) President Chen Yunlin and the Taiwan-based Straits Exchange Foundation (SEF) Chairman Chiang Pin-kung signed the agreement to cooperate with one another in terms of money regulation, accessibility of financial institutions to each other's market, and an arrangement for information exchange for financial regulatory purposes.

The two negotiating parties agreed to offer aid on implementing financial and monetary regulatory responsibilities, expanding wide cooperation in financial areas and jointly safeguarding financial stability.

The two sides assured each other to effectively supervise individual financial and monetary institutions from the opposite party.

The agreement asked regulatory bodies on banking, securities and futures, and insurance in both the Chinese mainland and Taiwan to prepare for detailed arrangements for the agreed-upon cooperation.

The two sides also agreed to encourage commercial banks from both sides to start business on money swaps, supply and reflux, as well as cooperation on cash anti-counterfeiting technology.