As mainland Chinese economy rises and the Cross-Strait financial policies open, Taiwan’s banking industries are faced with increasing difficulty in operation due to a large number of domestic manufacturers investing overseas plus the shortage in domestic demand that leads to the predicament of zero loans. Nonetheless, Taiwan’s banking industries are forced to confront with the new market and expand new opportunities for development. Moreover, Taiwan and mainland China have been separated for years, while the culture, economies and financing have developed with distinctive differences which lead to major barriers in the Cross-Strait cultural exchange. The Cross-Straits also joined the WTO in 2001 and 2002. Nevertheless, due to the difference in Cross-Strait economic structure and the essential criteria that put the Cross-Straits into WTO, mainland China has already opened the banking industries through different phases after joining the WTO. Upon successful public listing in April, 2003, the China Banking Regulatory Commission (short for CBRC) has focused more on the opening for (1) further expansion of the scope and domain for the business management of foreign banks. (2) Promoting the strengthening of cooperation between foreign banks and the Chinese-capital banking business. Additionally, mainland China seeks for aggressive transformation in financial related systems and decrees, thereby to cope with world trends and wait for the confrontation with foreign competitors. China also promulgated the new version of “Regulations on the Administration of Foreign-funded Banks of the People''s Republic of China” in December, 2006, which completely lifted the constraints on foreign banks operating RMB businesses in China area. As a result, the concepts and actions of Taiwanese banks accessing mainland China then evolve. Taiwan and mainland China have signed the Financial Supervision MOU on November 16th, 2009 to officially launch the Cross-Strait Financial Supervision exchange. Later, Taiwan even signed the Cross-Strait Economic Cooperation Framework Agreement (ECFA) with China on June 29th, 2010, which Taiwan’s banking industries look forward to apply as regulations to access the mainland Chinese market. To understand the overview of Chinese financial market and the strategies used by Taiwan’s banking industries in the development of financial businesses in China, the study employs literature review and organization to analyze the management development and strategies for Taiwan’s banking industries to access mainland Chinese market. First, the study discusses over the development of Taiwan’s banking industries, overview, business performance and issues currently encountered in local Taiwan. The study then compares the financial systems and decrees between Taiwan and China, to finally add the relevant development of foreign banks worldwide in mainland China through mutual exchange for use as reference by the management of banking industries.
The study findings show that Taiwan’s banking industries still employ branches and subsidiaries as main strategy as the management strategies to access the mainland Chinese market. It is suggested that Taiwan’s banking industries could cooperate with Chinese banks or foreign banks in China through strategic alliance or business. In addition, joint venture or equity participation could be taken into consideration for banks that have not set up offices yet. Such banks should seek for cooperation with the local financial businesses in China to create Cross-Strait money flow while taking aggressive measures in business intelligence collection, in order to prepare for office setup in the future. Moreover, the foreign reserve of China is currently the highest worldwide while surpassing Japan and is second to the United States to become the world’ second largest economy. The future domestic market and financing opportunities with mainland Chinese people should not be overlooked.
Initially, the banks could seek for working with Taiwanese companies traveling between Taiwan and China as the business opportunities. Nonetheless, localization will eventually be required for the banking industries to share the potential opportunities of financial management brought by the growth of Chinese economy.