萬國法律事務所

Taiwan’s President Chen Shui-bian earlier this year promulgated the revised Offshore Banking Act in order to enable offshore banking units to entrust business (including cross-strait financial business) to their banks’ domestic banking units.  This relaxation will allow the nearly 70 banks in Taiwan that maintain offshore banking units (including both domestic and foreign banks) to provide international financial services through their worldwide branch networks, and is expected to enhance enterprises ability to flexibly utilize their capital for investment around the globe.  It is also hoped that this liberalization will significantly increase efficiency in regard to the banking services offered in Taiwan.

This move comes after Taiwan’s recent decision to permit offshore banking units to conduct US Dollar-Chinese Renminbi non-delivery forwards and non-delivery options businesses.  According to data maintained by Taiwan’s Central Bank, of the nearly 70 offshore banking units conducting business in Taiwan as of the end of February 2006, 41 were affiliated with domestic Taiwan banks while 28 were connected to foreign banks, and their combined total assets equaled US$ 68.316 billion.  This amount shows an increase from the previous year of 0.33%, or US$ 228 million.  This data illustrates that these offshore banking units have evolved into funding centers for Taiwanese enterprises conducting business overseas and in China.