TAIWAN

Banks to Be Able to Deal With Chinese Counterparts: Taiwan has drafted regulations to let banks deal directly with mainland Chinese banks. Overseas branches of Taiwanese banks will be allowed to negotiate letters of credit and foreign exchange remittances with Chinese banks. At present, Taiwanese banks can deal with Chinese financial institutions only through foreign banks. The reform will make it easier for Taiwanese banks to profit from rapid growth in trade with China. Taiwan will continue to prohibit its banks from setting up branches inside China. Taiwanese institutions will be encouraged to set up branches to handle China business in areas such as Hong Kong, the officials said.