萬國法律事務所

According to news reports of 14 September, Taiwan’s Director General of the Banking Bureau (BB), which exists under the Financial Supervisory Commission (FSC), stated that the BB plans to relax the application procedures for domestic banks seeking to establish foreign representative and branch offices.

The amendment of the Directions Concerning the Establishment of Foreign Branches by Domestic Banks (Directions) and relevant regulations is an attempt to expedite the process by which domestic banks establish foreign representative and branch offices. It is hoped that the amendment will help to improve the competitiveness of such domestic banks.

Currently, it takes proximately one (1) month for the FSC to issue a required prior approval for the establishment of a foreign representative and branch office under the Directions. The prior approval will be changed to an automatic approval, provided that the FSC does not object with fifteen (15) days upon its receipt of the application.

It is estimated that the amendment of the Directions will be made by the end of this year. The relaxation will not, however, apply to establishment of foreign subsidiary banks as well as representative offices, branch offices and subsidiary banks to be established in China.